Indiana’s Beacon Credit Union tops the best nationally available deals with its long-term CD rates.
With a minimum deposit of $2,500, it pays:
- 2.11% APY for 60-month CDs.
- 1.51% APY for 36-month CDs.
The top nationally available 60-month CD rate on our CD Rates Leaderboard has been tough to beat since rising to 2.05% APY earlier this month.
The 36-month CD beats its term leader by a bit more than a tenth of a percentage point.
But the credit union’s 34-month special tops the 36-month lead rate by more than a fifth of a percentage point, although that 1.61% APY requires a $10,000 minimum deposit.
To purchase these certificates of deposit, you have to be a member of Beacon Credit Union. Membership is open to those who live and work in 18 Indiana counties. These counties include the major cities of Anderson, Fort Wayne and Kokomo.
Membership requires a $25 deposit in a savings account.
We have reservations about this deal because the deposits are not federally insured. Rather, Beacon Credit Union holds private mortgage insurance up to $250,000 per account.
There’s nothing to suggest private mortgage insurance won’t be there if a credit union fails, but it’s not the same as having the backing of the federal government, which banks insured by the Federal Deposit Insurance Corp. and credit unions insured by the National Credit Union Administration have.
While most credit unions are insured through the NCUA, a few states allow credit unions to opt for private mortgage insurance instead.
You can tell which form of insurance your credit union has by looking at the bottom of its website. If it doesn’t have an NCUA designation, it should have a private insurance logo.
Members must buy CDs in person. There are branches in Angola, Auburn, Garrett, Huntington, Logansport, Marion, New Haven, North Manchester, Peru, Plymouth, Rochester, Wabash and Warsaw.
Learn more about Beacon Credit Union at www.beaconcu.org or call 800-762-3136.
See how these returns compare with the best CD rates from scores of banks in our extensive database.