SECU does not offer a product labeled "high yield savings account," but it does offer savings accounts with interest rates that vary by account type and balance

SECU — the State Employees Credit Union — is a credit union, not a bank, which shapes what savings products it offers and how the rates work. Credit unions typically structure savings differently than banks do. SECU's main savings vehicles are a regular savings account, a money market account, and certificates of deposit (CDs). None of these are marketed as "high yield," and the rates on the savings and money market accounts change regularly based on SECU's rate-setting decisions, not on market conditions alone.

If you are comparing SECU to online banks advertising rates above 4% or 5%, SECU's rates will likely be lower. SECU's savings account rates have historically ranged between 0.05% and 0.25% APY, though this varies. The money market account typically pays slightly more, but still well below what online-only banks advertise. The real advantage of SECU savings is not the rate — it is membership access, branch availability if you live near one, and the credit union structure itself.

Key Takeaways

  • SECU offers savings accounts and money market accounts, but neither is positioned as a high yield product and rates are typically below 1% APY.
  • SECU's rates are set by the credit union and do not move with market rates the way online bank rates do, so comparing rates requires checking SECU's current offerings directly.
  • If earning the highest possible interest is your goal, online savings accounts from banks like Marcus, Ally, or American Express typically pay 4% to 5% APY, which is substantially higher than SECU.
  • SECU's value proposition is membership, branch access, and credit union benefits rather than competitive savings rates.

How SECU's savings accounts work

SECU's standard savings account is a basic deposit account where you can withdraw money without penalty. Interest accrues daily and is credited monthly. There is no minimum balance requirement to open one, though some SECU branches may have different rules for different membership categories. The rate paid on this account is set by SECU and does not change automatically when the Federal Reserve adjusts rates — SECU changes its rates on its own schedule, which may be months after a Fed move.

The money market account is a step up. It typically pays a higher rate than the savings account, but it usually comes with a limit on how many withdrawals you can make per month (often six). If you exceed that limit, SECU may charge a fee or convert the account to a savings account. The money market account is meant for people who want to save a larger sum and leave it mostly untouched.

Both accounts are insured by the National Credit Union Administration (NCUA) up to $250,000, the same way bank deposits are insured by the FDIC. This means your money is protected if SECU fails, though that risk is extremely low for a large, established credit union.

Why SECU rates are lower than online banks

Online banks like Marcus, Ally, and American Express have much lower operating costs than SECU. They have no physical branches, no tellers, and minimal overhead. They pass those savings to customers in the form of higher interest rates. SECU, by contrast, operates branches in multiple states, employs staff, and maintains the infrastructure of a traditional financial institution. Those costs come out of the interest it can afford to pay.

Additionally, online banks are highly sensitive to market rates because they compete almost entirely on rate. When the Federal Reserve raises rates, online banks raise their savings rates within days to stay competitive. SECU, as a credit union, does not face the same competitive pressure. Its members use SECU for checking accounts, loans, credit cards, and other services, not just savings. SECU can afford to keep savings rates lower because it makes money on the lending side — mortgages, auto loans, personal loans — and does not need savings rates to be the hook that brings people in.

SECU's certificates of deposit (CDs) as an alternative

If you want a may provide rate from SECU, a CD is the better option. CDs lock your money away for a set term — typically three months, six months, one year, two years, or five years — and in exchange you get a fixed rate that does not change. SECU's CD rates are higher than its savings account rates, though they still tend to lag behind what online banks offer for the same term.

The trade-off is liquidity. If you withdraw money from a CD before the term ends, SECU charges an early withdrawal penalty. The penalty amount depends on the term length — a longer CD has a larger penalty. You need to be confident you will not need the money before the maturity date.

CD rates also move more slowly than savings account rates. When rates are falling, SECU may keep CD rates higher for longer to lock in customers. When rates are rising, SECU may lag in raising CD rates. If you are considering a CD, compare SECU's current rates to what online banks are offering for the same term before committing.

Who should use SECU savings accounts

SECU savings makes sense if you are already a SECU member and you value the convenience of a local branch or the ability to manage your account in person. It also makes sense if you use SECU for checking, loans, or other services and want to keep everything in one place. The rate difference between SECU and an online bank may not matter much if you have a small balance or if you value the relationship and service.

SECU savings does not make sense if your primary goal is to earn the highest possible interest on a large sum of money. In that case, opening a savings account at an online bank will earn you substantially more. You can keep both — a SECU savings account for everyday access and an online savings account for money you want to grow. Many people do exactly that.

How to check SECU's current rates

SECU publishes its current rates on its website under the savings and money market sections. Rates vary by membership category — SECU has different membership tiers depending on your employer or affiliation — so you may see different rates than someone else. The website shows the APY, which is the annual percentage yield and accounts for how often interest is compounded.

You can also call a SECU branch or visit in person to ask about current rates. Because rates change on SECU's schedule and not automatically, it is worth checking before you open an account to see whether the rate is competitive for your situation. If you are comparing to online banks, pull up their rates at the same time so you can see the actual difference in dollars.

Frequently Asked Questions

Can I move money between SECU savings and checking without penalty?

Yes, transfers between your own SECU accounts are free and unlimited. The withdrawal limits that explore to money market accounts do not explore to regular savings accounts, so you can withdraw from savings as often as you need to.

What happens if SECU changes its savings rate after I open an account?

SECU can change the rate on your savings account at any time, and the new rate applies to your existing balance. You will be notified of the change, but you cannot lock in a rate on a savings account the way you can with a CD. If you want a may provide rate, open a CD instead.

Is SECU savings insured the same way as bank savings?

Yes. SECU deposits are insured by the NCUA up to $250,000 per account category, which is the same protection level as FDIC insurance at banks. Your money is equally safe at SECU as it is at a traditional bank.

Can I open a SECU savings account if I do not work for the state?

SECU membership requirements vary. Some people are may be able to access through their employer, some through family relationships, and some through membership in certain organizations. Check SECU's membership page or call a branch to confirm whether you are may be able to access before you try to open an account.

Should I move my savings from SECU to an online bank for a higher rate?

That depends on how much money you have and how much the rate difference matters to you. If you have $10,000 in SECU savings at 0.15% APY and an online bank offers 4.5% APY, the difference is about $425 per year. If that matters to you, moving makes sense. If you have $1,000, the difference is about $43 per year. You can also keep both accounts and move only the money you do not need when ready access to.