Can You Invest Money at a Credit Union?

Posted by Credit Union of Texas on September 28th, 2017

Many people choose to open deposit accounts at credit unions because of the distinct differences these banking institutions offer. As not-for-profit cooperatives that are member-owned and member-driven, credit unions provide individuals with a high level of service and access to lower rates on loans and credit cards. What some members may not realize is that credit unions also provide investment products.

Credit union members are likely to find a diversity of investment products are available to them. Each is designed to help members reach their financial goals. Products available may include:

• Interest-bearing savings accounts – Just like traditional banking customers, credit union members may open savings accounts that earn interest on their balances. Credit unions, however, tend to pay higher rates to their members than bank customers might enjoy. This is because credit union profits are earmarked for befitting members not shareholders.
• Certificates of Deposit – This investment product provides credit union members with a short-term investment that can be expected to earn a set return over a defined period of time. Ranging from six months to 60, the rates paid are higher than standard savings accounts, enabling members to enjoy modest earnings faster.
• Individual Retirement Accounts – Credit unions are also equipped to help members save and invest for their retirement. IRAs can be opened for as little as for IRA accumulator accounts. Full certificate IRA accounts may require a 0 minimum deposit, but offer a higher interest yield over their terms.
• Money Market Accounts – This investment product functions much like a traditional savings account, but offers a higher interest rate. Average daily balance requirements typically apply to qualify for different annual percentage yields.

Credit union members will find they have access to all the same investment products standard banks offer. The difference lies in the service provided and the opportunity to earn higher returns than banks typically pay out on investment accounts.

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Serving our community since 1931, CUTX is owned by its members and operated in accordance with the laws governing credit unions in the State of Texas. As a member, your deposits are federally insured by the National Credit Union Administration, a United States government agency.