Credit Unions Celebrating Anniversaries Offer Special CD Rates

Key Points:

• Credit unions celebrating milestone anniversaries are offering some of the highest certificate of deposit (CD) rates in the nation, such as Southland Credit Union's 9% APY for a nine-month CD and Lynchburg Municipal Employees Federal Credit Union's 6.5% APY for a 78-month CD.
• These promotional CD rates often come with restrictions such as low deposit limits, short terms, or strict membership eligibility, but they reflect an improving CD market amid rising inflation.
• Inflation has remained above 3% for four consecutive months, prompting expectations of interest rate hikes in 2026, which in turn encourages banks and credit unions to raise CD rates to attract deposits.
• The median CD rate has risen to 3.25%, with six-month CDs at 3.5% APY and 12-month CDs at 3.25%, and many financial institutions increased rates ahead of the Federal Reserve's recent decision to hold rates steady.
• Competition among banks and credit unions is a key driver of rising CD rates, and consumers are advised to compare offers carefully to maximize earnings, with some of the highest rates currently available limited to specific regions or membership groups.