How to Compare Credit Union Savings Account Interest Rates
Credit unions typically offer higher interest rates to credit union members. When money is placed in a savings account at a credit union, one can earn a certain percentage of income based upon the amount that they have in their account. It is important to compare credit union accounts and find the best interest rate possible.
- Decide what type of savings account you wish to open. You will be able to choose from a traditional savings account, a money market account or a high-yield money market account. The requirements for each type of account vary by credit union. In most cases, high-yield money market accounts require a larger initial deposit but pay a higher interest rate than a traditional savings account, which may allow a small initial deposit. Learn about the options that are available at each credit union that you contact.
- Use an online rate comparison tool. These tools can be found on many different websites, including BankRate.com and SavingsAccount.com. An online comparison tool can help you to compare the interest rates being offered by many credit unions at a glance.
- Deduct monthly fees. Some credit unions charge monthly fees if your account balance drops below a certain amount or if you have too many transactions within a month. While the credit union may offer a high interest rate, if you incur fees each month, your profits will be severely lessened.
- Compare the credit unions that you research. Choose the credit union that offers a high interest rate for the account that you wish to open, charges few fees and has reasonable membership requirements.