Mountain America does not offer a dedicated high-yield savings account

Mountain America Credit Union offers savings accounts, but none are marketed or structured as high-yield products. Their standard savings account earns interest, but the rate is set by the credit union and does not compete with the rates you will find at online banks or other financial institutions focused on savings yields.

If you are a Mountain America member looking for higher returns on savings, you have two practical paths: keep money in their standard savings account for convenience and FDIC insurance through the National Credit Union Administration (NCUA), or move funds to an institution that specializes in high-yield savings. The choice depends on whether you value the relationship with Mountain America or prioritize the interest rate itself.

Key Takeaways

  • Mountain America Credit Union does not have a high-yield savings account product; their savings accounts earn standard rates set by the credit union.
  • Mountain America savings accounts are insured up to $250,000 per account holder through the NCUA, the credit union equivalent of FDIC insurance.
  • Online banks and some credit unions currently offer savings rates significantly higher than Mountain America's standard offerings.
  • You can maintain a Mountain America account for checking and other services while holding high-yield savings elsewhere, since there is no requirement to keep all accounts at one institution.

How Mountain America's savings accounts work

Mountain America offers a basic savings account to members. The account earns interest, but the rate varies and is determined by the credit union based on market conditions and their own funding needs. Rates at credit unions typically lag behind online banks because credit unions operate on a membership model and may prioritize lending to members over maximizing savings returns.

To open a Mountain America savings account, you must be a member of the credit union. Membership is open to people who live, work, worship, or attend school in their service area, which covers parts of Utah, Idaho, and Wyoming. Once you are a member, you can open a savings account online or at a branch, and the account is insured up to $250,000 through the NCUA.

What high-yield savings accounts actually offer

A high-yield savings account is a savings product at an online bank or credit union where the interest rate is substantially higher than the national average. As of early 2024, the national average savings rate hovers around 0.01 percent, while high-yield accounts typically offer rates between 4 and 5 percent annually. The difference matters: on $10,000, you would earn roughly $1 per year at the national average, but $400 to $500 per year at a high-yield rate.

High-yield accounts work the same way as any savings account — you deposit money, it earns interest monthly, and you can withdraw it — but the rate is the main selling point. These accounts are offered by online banks like Marcus, Ally, and American Express Personal Savings, as well as some credit unions and traditional banks with online divisions. They are insured the same way: up to $250,000 per depositor through the FDIC (at banks) or NCUA (at credit unions).

Why Mountain America's rates are lower

Credit unions like Mountain America typically offer lower savings rates than online banks for structural reasons. Credit unions are member-owned and often prioritize lending to members at competitive rates rather than paying high rates on savings. They also have physical branches and staff to maintain, which costs money that online banks do not spend.

Online banks can offer higher rates because they have no branches, lower overhead, and their business model is built around attracting deposits through competitive rates. They then lend that money out or invest it. Mountain America's model is different — they exist to serve their membership, and savings rates are one tool among many to do that, not the primary product.

How to compare Mountain America to high-yield options

If you want to know Mountain America's current savings rate, you can call a branch, visit their website, or ask during online chat. Write down the annual percentage yield (APY) they quote you. Then check the current rates at online banks like Marcus, Ally, American Express Personal Savings, or Discover Bank. Most publish their rates on the homepage and update them daily.

The comparison is straightforward: multiply your savings balance by the APY at each institution, and that is the annual interest you would earn. A $25,000 balance at 0.01 percent earns $2.50 per year. The same balance at 4.5 percent earns $1,125 per year. The difference compounds monthly, so the gap widens over time if rates stay the same.

Whether to keep money at Mountain America or move it

This decision depends on what matters most to you. If you value having all your accounts in one place, prefer working with a credit union, or want the option to visit a physical branch, keeping savings at Mountain America makes sense even if the rate is lower. The difference in interest might be worth the convenience.

If you are focused on maximizing the return on your savings and do not need to access the money frequently, moving some or all of your savings to a high-yield account elsewhere is the straightforward choice. You can keep a checking account or small savings account at Mountain America for daily banking and move larger amounts to a high-yield account at an online bank. There is no rule against holding accounts at multiple institutions.

What to watch if you move your savings

High-yield rates change frequently. The rates you see today may be lower in six months or higher in three months, depending on what the Federal Reserve does with interest rates. When you move money to a high-yield account, understand that the rate is not locked in — it can drop. Most online banks lower rates when the Fed cuts rates, and raise them when the Fed raises rates.

Also confirm that the institution you choose is FDIC-insured (if it is a bank) or NCUA-insured (if it is a credit union). This protects your money up to $250,000 if the institution fails. You can verify FDIC insurance on the FDIC's website by searching the bank name, and NCUA insurance the same way on the NCUA's website.

Frequently Asked Questions

Can I open a high-yield savings account at Mountain America?

No. Mountain America does not offer a high-yield savings product. They offer standard savings accounts that earn interest at rates set by the credit union, which are typically lower than high-yield accounts at online banks.

Is my money safer at Mountain America than at an online bank?

No. Both are equally safe up to $250,000. Mountain America accounts are insured through the NCUA, and online bank accounts are insured through the FDIC. Both are federal insurance programs that protect your deposits if the institution fails.

What happens to my interest rate if I move to a high-yield account?

The rate you see when you open the account is not may provide forever. Online banks can lower rates at any time, though they usually do so when the Federal Reserve cuts rates. Read the terms before opening an account to understand the rate policy.

Do I have to close my Mountain America account if I open a high-yield savings account elsewhere?

No. You can keep your Mountain America account open for checking or other services while holding savings at another institution. Many people maintain accounts at multiple banks and credit unions for different purposes.

How often do high-yield rates change?

Rates can change at any time, though most online banks adjust them in response to Federal Reserve decisions. Some banks change rates monthly, others quarterly. Check your account statements or the bank's website to see your current rate.