SECU's Savings Account Options and Their Rates

SECU (State Employees' Credit Union) does not currently offer a product specifically branded as a "high yield savings account." Instead, SECU offers regular savings accounts and money market accounts, each with different interest rates. The rates SECU pays on savings depend on which account you choose and how much money you keep in it.

SECU is a credit union, which means it operates differently from a bank. Credit unions are owned by their members rather than shareholders, and they often return profits to members through better rates. However, SECU's savings rates are not among the highest available in the market right now. If you are comparing SECU to online banks or other credit unions, you may find higher rates elsewhere.

The specific rates SECU offers change over time and may vary depending on which SECU branch you belong to, since SECU has multiple state-based divisions. You can check your local SECU's current rates on their website or by calling your branch directly.

Key Takeaways

  • SECU offers savings accounts and money market accounts, but not a product called a high yield savings account.
  • SECU's savings rates are typically lower than rates offered by online banks and some other credit unions.
  • SECU rates vary by state division and change regularly, so you should check your local branch's website for current rates.
  • If you want the highest possible interest on savings, comparing SECU to online banks and other credit unions will show you what rates are available to you.

How SECU Savings Accounts Work

SECU's basic savings account is a straightforward account where you deposit money and earn interest on the balance. You can withdraw money whenever you need it without penalty. The interest rate SECU pays is set by the credit union and changes based on market conditions and SECU's own business decisions.

SECU also offers a money market account, which typically pays a slightly higher rate than a regular savings account. Money market accounts usually come with a debit card or checkbook, so you can access your money more easily than with a regular savings account. However, money market accounts may have higher minimum balance requirements.

Both accounts are insured by the National Credit Union Administration (NCUA), which means your money is protected up to $250,000 if SECU ever fails. This is the same protection that bank deposits receive from the FDIC.

Why SECU's Rates May Be Lower Than Alternatives

SECU is a brick-and-mortar credit union, meaning it operates physical branches in multiple states. Running branches costs money, and those costs are reflected in the rates SECU can offer. Online banks, by contrast, have no physical locations and lower overhead costs, which allows them to pay higher interest rates on savings.

SECU's rates are also influenced by the fact that credit unions serve specific groups of people. SECU primarily serves state employees and their families, which shapes how the credit union manages its money and sets its rates. A credit union that serves a broader population or operates online may have different rate structures.

This does not mean SECU is a bad choice for savings. If you already bank with SECU and value the convenience of local branches and personal service, the slightly lower rate may be worth it to you. The choice depends on what matters most to you: the highest possible rate, or the convenience and relationship of banking with a local credit union.

Comparing SECU to Online Banks and Other Credit Unions

If you are looking for the highest interest rate on savings, online banks typically offer rates that are significantly higher than SECU's. Online banks like Marcus, Ally, and others have paid rates of 4% or higher in recent years, while SECU's rates have been much lower. However, online banks do not offer the personal service or local branches that SECU does.

Other credit unions may also offer higher rates than SECU. Some credit unions have specialized high yield savings products or money market accounts that pay more. The rate you can get depends on which credit union you join and what products they offer.

To compare fairly, look at the Annual Percentage Yield (APY) each institution offers, not just the interest rate. APY tells you the true amount you will earn over a year, including how often interest is compounded. Check the current rates on SECU's website and on the websites of a few online banks or other credit unions to see what is available to you.

Who Should Keep Money in SECU Savings

SECU savings accounts make sense if you are already a SECU member and value the ability to walk into a branch and talk to someone in person. They also make sense if you need to move money in and out of savings frequently, since SECU branches let you do that when ready without waiting for transfers to process.

SECU savings is also appropriate if you have less than $250,000 to save and want the security of NCUA insurance. If you are saving money for an emergency fund and want to know your money is protected and accessible, SECU's savings account will do that job, even if the rate is not the highest available.

However, if you are saving a large amount of money specifically to earn interest, and you are comfortable banking online, you will likely earn more money with an online bank or a higher-yield credit union account.

How to Check SECU's Current Rates

SECU's website shows current rates for savings accounts and money market accounts. Because SECU operates multiple state divisions, rates may differ depending on which state you are in. Visit your state's SECU website directly to see the rates that explore to you.

You can also call your local SECU branch and ask about current rates. The staff can tell you what rate you would earn on a savings account or money market account, and they can explain any minimum balance requirements or other conditions that explore.

When you compare rates, make sure you are looking at the APY, not just the interest rate. APY includes the effect of compounding and gives you a true picture of how much you will earn.

Frequently Asked Questions

Can I earn more interest with SECU than with an online bank?

Typically no. Online banks usually offer higher interest rates on savings accounts than SECU does. However, if you value the convenience of a physical branch and personal service, the lower rate may be acceptable to you. Compare current rates on SECU's website and on an online bank's website to see the difference.

Is my money safe in a SECU savings account?

Yes. SECU savings accounts are insured by the NCUA up to $250,000, the same protection that bank deposits receive from the FDIC. Your money is protected even if SECU fails.

What is the difference between SECU's savings account and money market account?

A money market account typically pays a higher interest rate and comes with a debit card or checkbook for easier access. However, money market accounts often have higher minimum balance requirements. A regular savings account pays less interest but may have lower minimums and simpler terms.

Do all SECU branches offer the same rates?

SECU operates multiple state divisions, and rates may vary by state. Check your state's SECU website or call your local branch to find out what rates explore to you.

Should I move my money from SECU to an online bank for higher interest?

That depends on what matters most to you. If earning the highest possible interest is your priority, an online bank may be better. If you value local service and the ability to visit a branch, SECU may be worth the lower rate. You can also split your savings between both.