Why are credit unions able to pay better interest rates on CDs than banks?

Credit Unions are financial cooperatives. They are owned by the members. Their board of directors and any committees are volunteers and do not get paid a salary. They are not for profit. These things add up to lower rates on loans and higher rates on savings.

Why are credit unions able to pay better interest rates on CDs than banks?heart rate monitor

Lower over head on executive salaries and fewer executives period. Working on a local level reduces costs on multiple items.

Why are credit unions able to pay better interest rates on CDs than banks? loan

biggest reason is that Credit Unions are not publicly held, they are %26quot;owned%26quot; by the depositors/members. Not having to answer to stock holders or pay dividends allows them to pay the members by higher rates on CD%26#039;s and lower rates on loans.