Highest Kansas CD (Certificate of Deposit) Rates

Consider this: Golden Plains Credit Union from Garden City, Kansas has an APY for its 24 Month Security of Deposit of 1.56%. Mid American Credit Union from Wichita, Kansas offers 1.25%. Wichita's Central Star Credit Union has an APY of 1.25%, likewise. University National Bank of Kansas offers a1.56% APY while Vision Bank offers the same rate. So what's the deal? Why is the other better than the other?

Credit Unions have better rates because banks want more profits and credit unions don't. This should not be seen in a negative way. Banks are business establishments. By that, it means they want to earn profits. Credit Unions, on the other hand, are non-profit organizations. This means that every profit they gain, they will distribute these to the members. The organization insuring the funds of credit union members is the National Credit Union Share Insurance Fraud or NCUSIF.

Another reason why Kansas CD (Certificate of Deposit) Rates are higher than the credit union rates is that credit unions are putting many restrictions on their investments. With many restrictions, there would be lesser members. Golden Plains, for instance, said that they aim to benefit the members but the only membership applications they will be approving are those coming from ten of the counties found in Kansas. Lesser members mean higher distribution of earnings. Dividend rates and interest rates will then be higher. For banks, especially the national banks, it is easy to put the money in banks making it obvious that the number of depositors in this type is bigger than that of credit unions. With the numerous crowds of bank depositors, the banks have to pay them small interests for borrowing the funds. The interest is part of their expenses and they have to lessen them as much as possible to keep up with their expenses.

Another feature of a credit union that is appreciated by its members is the fact that the credit union is looking out for the members' welfare. They take good care of them carefully and makes sure the members are happy and satisfied. And furthermore, many credit unions accept a dollar as a required opening balance for the CD service.

It's not pointing at the banks as the bad guy and the credit unions as the good guy. But rather, it also involves the services of the two institutions. Banks have a flexible variety of products and services such as loans, credit cards and such. Credit unions have a limited variety of products and don't offer much service.

Shopping for good Kansas CD (Certificate of Deposit) rates doesn't always have to start with banks. If a person qualifies for a credit union, the depositor should take that opportunity. Sometimes it's hard to get in the credit union due to the restrictions. But trying to get in won't hurt.

Still searching for a good investment tool which offers high Kansas CD (Certificate of Deposit) Rates, at low risk? Talk to your bank today, and see how a CD can help you grow your money.