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Credit union CD rates vs bank CD rates in 2026

By Editorial team · 2026-06-20

In short: Credit unions pay more on every CD term in the latest NCUA report. The biggest gap is the 1-year term: 2.95% at credit unions vs 2.29% at banks (rates as of December 26, 2025). At a credit union a CD is called a share certificate, but it works the same way.

If you are shopping for a certificate of deposit, a credit union is the better starting point on rate at every term. Here is the full comparison.

Every CD term: credit union vs bank

National average rates from the NCUA Credit Union and Bank Rates report, rates as of December 26, 2025, on a $10,000 deposit.

TermCredit union avgBank avgSpread
3 month1.96%1.57%+0.39 pts
6 month2.76%2.18%+0.58 pts
1 year2.95%2.29%+0.66 pts
2 year2.81%2.10%+0.71 pts
3 year2.75%2.05%+0.70 pts
4 year2.77%2.02%+0.75 pts
5 year2.83%2.11%+0.72 pts

What the gap is worth

On a $10,000 1-year certificate, 2.95% earns about $295 versus $229 at the bank average - roughly $66 more for the same locked term. The advantage grows with the balance and is even larger on multi-year certificates. Use the savings calculator to model your own amount.

A note on IRA certificates

The NCUA report does not break out a separate IRA CD rate, so we do not list one rather than guess. IRA share certificates usually price close to the regular term shown above; confirm with the institution.

See the 1-year CD page and the full rate comparison. National averages, general information, not financial advice - verify the live rate before depositing.

Frequently asked questions

What is a share certificate?

A share certificate is a credit union's version of a certificate of deposit (CD): you lock a fixed rate for a set term in exchange for an early-withdrawal penalty. It is federally insured up to $250,000 like any other share account.

Which CD term has the biggest credit union advantage?

The 1-year term, where credit unions average 2.95% vs 2.29% at banks - a 0.66-point edge. The 4-year term is close behind at 2.77% vs 2.02%.

Are credit union CDs safe?

Yes. Share certificates at federally insured credit unions are protected by the NCUSIF up to $250,000 per member, per ownership category - the same as FDIC coverage for bank CDs.

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Last updated: 2026-06-20