Credit union vs bank rates
National average deposit & loan rates at US federally insured credit unions vs banks · 23 products · NCUA Credit Union and Bank Rates, 2025 Q4
On average, credit unions pay higher rates on deposits and charge lower rates on loans than banks. In the latest NCUA report (rates as of December 26, 2025), credit unions beat banks on 8 of 10 deposit products - every CD term and money market - and undercut banks on 13 of 13 loan products, including auto loans (about 2 points cheaper), credit cards, mortgages and personal loans. Banks only edge ahead on basic savings and interest checking, where both pay very little. These are national averages, not the rate any one institution offers - this is general information, not financial advice.
Source: NCUA Credit Union and Bank Rates. Data as of December 26, 2025.
All products: credit union vs bank average rate
Every product in the NCUA Credit Union and Bank Rates, 2025 Q4. The "spread" is the credit-union average minus the bank average in percentage points. For deposits a positive spread means credit unions pay more; for loans a negative spread means credit unions charge less.
| Product | Credit union avg | Bank avg | Spread (CU - bank) | Better deal |
|---|---|---|---|---|
| Regular savings account | 0.19% | 0.32% | -0.13 pts | Bank |
| Money market account | 0.74% | 0.52% | +0.22 pts | Credit union |
| Interest checking account | 0.15% | 0.20% | -0.05 pts | Bank |
| 3-month CD / share certificate | 1.96% | 1.57% | +0.39 pts | Credit union |
| 6-month CD / share certificate | 2.76% | 2.18% | +0.58 pts | Credit union |
| 1-year CD / share certificate | 2.95% | 2.29% | +0.66 pts | Credit union |
| 2-year CD / share certificate | 2.81% | 2.10% | +0.71 pts | Credit union |
| 3-year CD / share certificate | 2.75% | 2.05% | +0.7 pts | Credit union |
| 4-year CD / share certificate | 2.77% | 2.02% | +0.75 pts | Credit union |
| 5-year CD / share certificate | 2.83% | 2.11% | +0.72 pts | Credit union |
| New car loan, 48 months | 5.32% | 7.33% | -2.01 pts | Credit union |
| New car loan, 60 months | 5.44% | 7.41% | -1.97 pts | Credit union |
| Used car loan, 36 months | 5.41% | 7.69% | -2.28 pts | Credit union |
| Used car loan, 48 months | 5.53% | 7.73% | -2.2 pts | Credit union |
| Unsecured personal loan, 36 months | 10.64% | 12.00% | -1.36 pts | Credit union |
| Classic credit card | 12.58% | 15.27% | -2.69 pts | Credit union |
| Home equity loan, 5-year (80% LTV) | 6.63% | 7.31% | -0.68 pts | Credit union |
| Home equity line of credit (80% LTV) | 7.13% | 7.74% | -0.61 pts | Credit union |
| 30-year fixed-rate mortgage | 6.26% | 6.50% | -0.24 pts | Credit union |
| 15-year fixed-rate mortgage | 5.76% | 6.07% | -0.31 pts | Credit union |
| 5/1 adjustable-rate mortgage | 5.73% | 6.55% | -0.82 pts | Credit union |
| 3/1 adjustable-rate mortgage | 6.09% | 6.56% | -0.47 pts | Credit union |
| 1-year adjustable-rate mortgage | 5.41% | 6.49% | -1.08 pts | Credit union |
Source: NCUA Credit Union and Bank Rates. Data as of December 26, 2025.
Open any product for what it is, a worked example and FAQ: browse all 23 products.
Deposits: where credit unions pay more
| Deposit product | Credit union avg | Bank avg | Better deal |
|---|---|---|---|
| Regular savings account | 0.19% | 0.32% | Bank |
| Money market account | 0.74% | 0.52% | Credit union |
| Interest checking account | 0.15% | 0.20% | Bank |
| 3-month CD / share certificate | 1.96% | 1.57% | Credit union |
| 6-month CD / share certificate | 2.76% | 2.18% | Credit union |
| 1-year CD / share certificate | 2.95% | 2.29% | Credit union |
| 2-year CD / share certificate | 2.81% | 2.10% | Credit union |
| 3-year CD / share certificate | 2.75% | 2.05% | Credit union |
| 4-year CD / share certificate | 2.77% | 2.02% | Credit union |
| 5-year CD / share certificate | 2.83% | 2.11% | Credit union |
Loans: where credit unions charge less
| Loan product | Credit union avg | Bank avg | Better deal |
|---|---|---|---|
| New car loan, 48 months | 5.32% | 7.33% | Credit union |
| New car loan, 60 months | 5.44% | 7.41% | Credit union |
| Used car loan, 36 months | 5.41% | 7.69% | Credit union |
| Used car loan, 48 months | 5.53% | 7.73% | Credit union |
| Unsecured personal loan, 36 months | 10.64% | 12.00% | Credit union |
| Classic credit card | 12.58% | 15.27% | Credit union |
| Home equity loan, 5-year (80% LTV) | 6.63% | 7.31% | Credit union |
| Home equity line of credit (80% LTV) | 7.13% | 7.74% | Credit union |
| 30-year fixed-rate mortgage | 6.26% | 6.50% | Credit union |
| 15-year fixed-rate mortgage | 5.76% | 6.07% | Credit union |
| 5/1 adjustable-rate mortgage | 5.73% | 6.55% | Credit union |
| 3/1 adjustable-rate mortgage | 6.09% | 6.56% | Credit union |
| 1-year adjustable-rate mortgage | 5.41% | 6.49% | Credit union |
See how much you would save
The free credit union savings calculator shows how much more interest you earn on a savings balance or CD, and how much you save in interest on a car loan, using these average rates - or your own numbers.
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Frequently asked questions
Do credit unions have better rates than banks?
On average, yes for most products. In the latest NCUA Credit Union and Bank Rates, 2025 Q4 (rates as of December 26, 2025), credit unions pay higher national average rates than banks on 8 of 10 deposit products tracked (including every CD term and money market) and charge lower average rates on 13 of 13 loan products (auto loans, credit cards, mortgages, home equity and personal loans). The two products where banks edge ahead are basic savings and interest checking, where both pay very little. These are national averages, not the rate any single institution offers.
How much lower are credit union auto loan rates?
Credit unions charge roughly 2 percentage points less than banks on car loans. In the latest NCUA report the average new-car loan was 5.32% (48-month) at credit unions vs 7.33% at banks, and a 48-month used-car loan was 5.53% vs 7.73%. On a $30,000 loan that gap can save well over $1,000 in interest over the term.
Is my money safe in a credit union?
Yes. Deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund (NCUSIF), administered by the NCUA, up to $250,000 per member, per ownership category - the same coverage limit that FDIC insurance gives bank deposits. The NCUSIF is backed by the full faith and credit of the United States.
Are these the rates I will actually get?
No. The figures here are NATIONAL AVERAGES across federally insured credit unions and banks from the NCUA's quarterly report. The rate you are offered depends on the specific institution, your credit, the balance or loan amount, and current market conditions. Always confirm the live rate with the credit union or bank before deciding.
Sources & accuracy
Rate averages from the NCUA Credit Union and Bank Rates report (2025 Q4, rates as of December 26, 2025; the underlying survey is collected for the NCUA by S&P Global Market Intelligence). Figures are national averages and general information, not financial advice or an offer - the rate you get depends on the institution and your situation, and rates change. Verify the current rate with the credit union or bank. See our methodology and disclaimer.
Last updated: 2026-06-22