Home page » Financial help » Credit help » Credit union

Credit union

In these uncertain times, some folks aren'tcomfortable unless their savings are safely ensconced in a bank accountthat's fully insured by the federal government. And even then, they mayget a little anxious if their bank installs new carpeting or repavesits parking lot.

The trouble with this strategy is that you'dprobably earn more money shaking out your sofa cushions than you'd getfrom the average bank certificate of deposit. Since the Federal Reservestarted cutting interest rates in September, CD yields have fallenthrough the floor. The average rate for a one-year CD was 1.97% lastweek, according to Bankrate.com. The average rate for a five-year CDwas a feeble 2.77%.

Some banks, though, are offering higher rates,so it pays to shop around. While you're looking, here's something elseto consider: credit unions. Rates on credit union CDs, often calledshare certificates, are often higher than rates on bank CDs. Severalcredit unions are offering 4% or higher for one-year sharecertificates, according to Bankrate.com.



Comments

No comments yet. Be first!

Your comment:
Name*:
Comment*:
(refresh this page if you can't read exact code above)
Security code*:
* - compulsory fields !


Friends