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When it comes to building savings, the interest rate on your account can make a huge difference over time. With national banks still offering paltry returns—often below 1%—many savers are looking elsewhere for better yields. One often-overlooked option is credit unions. These member-owned financial institutions frequently offer much better rates than traditional banks, particularly for smaller balances.
In 2025, a handful of credit unions are offering eye-catching rates of 5% APY or higher—some even reaching as high as 5.5%—on savings accounts. While there are usually some limits (such as earning the high rate only on the first $1,000), these accounts can still provide a meaningful boost to your savings.
Let’s take a look at the best credit unions currently offering 5% or more on savings accounts, including eligibility requirements, terms, and what makes them stand out.
1. Digital Federal Credit Union (DCU) – 5.5% APY on First $1,000
Rate: 5.50% APY (as of 2025)
Limit: Applies only to the first $1,000 in the Primary Savings Account
Membership: Open to anyone through partner organizations
Monthly Fee: $0
Minimum Balance to Earn APY: $5
DCU, based in Massachusetts but open nationwide, is one of the most well-known credit unions when it comes to offering high-yield savings. Their Primary Savings Account offers an incredibly high 5.5% APY on the first $1,000, making it one of the most lucrative savings offers in the country.
The rest of your balance earns a lower rate (typically under 1%), but savvy savers can use this account as part of a broader savings strategy to maximize yield. DCU is tech-forward, has a solid mobile app, and also offers competitive rates on CDs and auto loans.
How to Join: You can join by becoming a member of one of DCU’s partner organizations, such as Reach Out for Schools or the American Association of People with Disabilities (some have a small donation fee of $10 or less).
Best For: People looking to stash $1,000 in a high-interest, no-fee account and want access to a full-service credit union.
Be sure to use my referral code for a $25 bonus to start out with.
2. Blue Federal Credit Union – 5.00% APY on First $1,000
Rate: 5.00% APY
Limit: Only on the first $1,000 in a Accelerated Savings Account
Membership: Open to anyone with a small donation
Monthly Fee: $0
Minimum Balance to Earn APY: $0
Blue Federal Credit Union, headquartered in Wyoming, is another credit union that’s catching the attention of rate-savvy savers. Their Blue Rewards Savings account earns 5.00% APY on the first $1,000. After that, the interest rate drops significantly, so this is a great account to pair with others if you want to optimize returns.
Blue FCU also offers an interesting rewards program tied to their checking account that can offer benefits like ATM fee reimbursements and cash back.
How to Join: Anyone can join by making a small donation (as little as $5) to the Blue Foundation during the account opening process.
Best For: Those just starting to save, or people who want to diversify their savings across multiple high-yield accounts.
Tips for Making the Most of These Offers
If you’re trying to grow your savings efficiently, here are a few strategies:
1. Stack Multiple Accounts
Since most of these high-yield accounts cap the high interest at $1,000, one of the best ways to take advantage is to open multiple accounts across different credit unions and banks. For example:
- $1,000 in DCU @ 5.50%
- $1,000 in Blue FCU @ 5.00%
- $5,000 in five NetSpend accounts @ 5.00%
- $10,000 in Ally bank @ 3.50%
This strategy allows you to earn top-tier rates on up to $17,000 in savings or more, rather than letting your entire balance sit in a low-yield account at a big bank.
2. Set Up Automatic Transfers
To make managing multiple accounts easier, set up automatic transfers between your main bank and these credit unions. That way, you can “top off” the balances each month to keep earning the highest yield.
3. Read the Fine Print
Some of these accounts have activity requirements like debit transactions or direct deposits. Missing a requirement could drastically reduce your APY for the month. Hence why I did not list any credit unions that required monthly debit card usage.
4. Reevaluate Annually
Credit union rates are subject to change. What’s paying 6% this year might only pay 3% next year. Set a reminder to reevaluate your savings strategy every 6–12 months to ensure you’re still getting the best returns.
Why Credit Unions Can Offer Higher Rates
Credit unions are not-for-profit organizations. Unlike big banks, which operate to deliver returns to shareholders, credit unions return profits to their members—usually in the form of higher interest rates on savings and lower loan rates.
Additionally, credit unions are federally insured by the NCUA, meaning your deposits are protected up to $250,000, just like FDIC insurance at banks.
Final Thoughts
If you’re parking your savings in a big national bank earning less than 1%, you’re leaving money on the table. Credit unions like DCU and Blue Federal are making it easier than ever to earn 5% APY or more, with just a few basic steps.
While these high rates often apply only to limited balances, they can still add up. For example, putting just $1,000 into DCU’s Primary Savings Account at 5.50% APY earns over $55 a year, compared to less than $10 at many banks. Multiply that across a few accounts, and you could earn hundreds in interest annually with very little effort.
These savings options are perfect for:
- Emergency funds
- Sinking funds for upcoming expenses
- Starter accounts for kids or teens
- Short-term savings goals
By mixing and matching these high-yield accounts, you can build a hybrid savings strategy that far outpaces inflation and beats nearly every bank on the market.
Start with one or two that fit your needs best and add more over time. With a little planning, your money can start working harder for you—without any risk.
Let your savings grow smarter.
