NEW YORK–One credit union has appeared in a list of 20 providers of high-yield savings accounts, and it’s offering a whopping 6.17% APY (but with a caveat).
While many credit unions have joined with banks in having little interest in attracting deposits, some providers, especially digital providers, continue to price above market and seek deposits.
In a report examining deposit account yields offered on digital accounts only, Magnify Money identified 20 providers it said are paying APY’s of .60% or higher, compared to the average APY from traditional brick-and-mortar bank, which it said remain a “paltry 0.06%.”
“If you’re still skeptical about switching to an online bank, consider the facts. Your funds are just as safe stashed with an FDIC-insured online bank as they would be with the bank branch on Main Street, and you’re likely to get better technical support with an online-only bank website and app,” Magnify Money said in a message to its consumer-oriented audience.
Rate Paid Up to $1,000
The credit union making the list is Massachusetts-based Digital Credit Union, which is paying the 6.17% APY on deposits up to $1,000. The account carries no monthly fees but also offers no ATM access.
“Digital Federal Credit Union (DCU) currently offers a nice account for people who are just starting to save,” Magnify Money said in its review. “You can earn an APY of 6.17% with their Primary Savings Account. You will only earn that rate on deposits up to $1,000. Once you have more than $1k, you should consider other accounts on this list. It is a credit union – and your deposits are insured by the NCUA up to the legal limit.
“Anyone can join the credit union by donating to one of their participating organizations such as Reach Out for Schools, which has a membership fee of $10. You’ll be able to join one their participating organizations when you go to open your account with DCU,” the report continued.
Other digital providers on the Magnify Money list include Synchrony Bank, Capital Bank, and Marcus by Goldman Sachs.
The full report can be found here.