The Best Credit Union Savings Accounts

Posted on January 28, 2012 by Max

(2 votes, average: 5.00 out of 5)

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Look at any big-bank savings account, and you’ll see savings rates at an all-time low. But even though Ben Bernanke has his foot on interest rates’ throat like a vengeful Greek god of old, you don’t have to settle for 0.01% interest rates – just look to your credit union. These not-for-profit institutions are offering some of the best yields in the nation, often 5 to 10 times the national average.

And opening a savings account at a good credit union isn’t just about the money. You’ll be joining as a member/owner, and your money will be invested back into your local community. Of course, earning at least five times the national average (0.11% APY as of January 23rd) still feels pretty good. Take a look at our top savings accounts at credit unions nationwide.

Best Starter Account: Delaware Alliance Federal Credit Union (New Castle, DE)

Are you new to the world of saving? In partnership with the Delaware program First State Saves, members of Delaware Alliance can open a Savings Builder Account with an impressive 1.10% APY and practice good saving habits. To keep you on track, you can’t withdraw any money without penalty until you’ve saved at least $500. The goal is to save $1,000, at which point you must withdraw the money or transfer it into a different account.

Membership is available to those in select employee groups and their immediate families, and community volunteers in the New Castle area.

Best Passbook Account: Whitefish Credit Union (Whitefish, MT)

Unlike most credit unions, Whitefish Credit Union only offers savings accounts (no checking), but talk about doing one thing and doing it well: their APY is a consistent 1.05%. All you need to open a passbook savings account is a $5 deposit. With this type of account, you record your transactions in a passbook instead of a receiving a monthly statement. For the right person, a passbook account is a great way to stay on top of your savings, but you’re responsible for making sure everything’s up to date.

Membership is open to anyone who lives within 50 air miles of Whitefish or the four northwest counties of Montana (Lake, Lincoln, Sanders and Flathead).

Best Savings and Checking Combo: Connexus Credit Union (Wausau, WI)

Connexus Credit Union offers a regular savings account with an above-average 0.5% APY. When you sign up for a checking account too, your yield goes through the roof. The MyRewards Checking account offers a 1.75% APY and doesn’t have a minimum balance requirement. To qualify for interest, you need to make 10 transactions with your Visa card each month, set up one regular direct deposit or third party auto-debit, and elect to receive electronic statements. Even though this credit union is based in Wisconsin, membership is open to anyone who joins the Connexus Association with a one-time $5 donation.

Best for Kids: First Jersey Credit Union (Wayne, NJ)

First Jersey Credit Union’s regular share savings account for adults offers a 0.501% APY and only requires a $10 minimum balance. With a parent’s help, kids ages 5 – 14 can join the Mighty Savers Club and open their own version, with the same APY, for just $5. Club membership includes a free gift, a membership card, and a passbook to practice logging transactions. Kids get a star for each week they make a deposit and 10 stars earns them a $10 gift certificate to a local toy, video or education store. They also get $5 for every year they receive A’s in school. Bet your piggy bank can’t do that!

Membership is open to anyone who lives, works, worships or attends school in Bergen and Passaic counties, and the underserved areas of Essex, Hudson and Union counties. Family members of eligible members are also welcome.

Best Big Saver Account: Telhio Credit Union (Columbus, OH)

If it’s easy for you to maintain a $5,000 monthly balance, put your money in a high yield checking or savings account from Telhio Credit Union. Either way, your APY will be an outstanding 1.05%.

Membership is open to anyone who lives, works, worships or goes to school in Franklin County and the surrounding communities.

Best Goal-Oriented Account: Twinstar Credit Union (Olympia, WA)

Is there a major holiday, family vacation or wedding in your future? Twinstar Credit Union’s Planned Savings account can help you save money for that next big purchase. A representative will help you set minimum monthly payments to save a certain amount by your goal date. In return for your diligence, you’re eligible for a 1.6% APY on the account. Best of all, it doesn’t matter if your goal is extravagant or modest: there’s no minimum balance requirement for the program.

Membership is open to anyone living in Washington State and the Portland Metropolitan Area in Oregon.

Best Mid-Range Account: Michigan Coastal Credit Union (Muskegon, MI)

Most high-yield savings accounts require a high minimum balance. Michigan Coastal Credit Union will let you open a regular shares account, which earns 0.25% APY if your balance exceeds $500, with as little as $5. A $2,500 minimum balance earns you the highest yield, at 0.75%.

Membership is open to anyone who lives, works or worships in Muskegon County, Michigan.

Best Multi-Bracket Account: West Virginia Central Credit Union (Parkersburg, WV)

West Virginia Central Credit Union’s savings account offers a great rate no matter what your account balance is. For any deposit starting at $25, you’ll qualify for a 0.71% APY. Deposit $1,000 or more, and you’ll get an even better interest rate: 0.75% APY.

Membership is open to members of select employee groups. The long list includes both local companies and large companies with a national presence, like American Express, Coca Cola and Sam’s Club.

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