SECU's savings account options and where high yield fits

SECU (State Employees Credit Union) does not offer a dedicated high yield savings account. SECU is a credit union, not a bank, and its savings products are structured differently than the high yield accounts you see advertised by online banks. SECU members can open a regular savings account, but the dividend rate (what credit unions call interest) is typically lower than what online banks pay on high yield accounts.

SECU's dividend rates vary by membership type and account balance, and they change periodically. As of recent years, SECU's regular savings account dividend rates have ranged from around 0.01% to 0.25% APY depending on your balance tier, which is substantially lower than high yield savings accounts offered by online banks—which often pay 4% to 5% APY or higher.

If you are a SECU member looking for better returns on savings, you have two main paths: keep money in SECU's regular savings account for convenience and credit union membership benefits, or move some funds to a high yield savings account at an online bank while maintaining your SECU membership for other financial needs.

Key Takeaways

  • SECU offers regular savings accounts but not high yield savings accounts; dividend rates are typically 0.01% to 0.25% APY depending on balance.
  • Credit unions like SECU structure savings differently than banks and generally pay lower rates on savings products.
  • Online banks and some traditional banks offer high yield savings accounts with rates currently 4% to 5% APY or higher.
  • You can hold both a SECU savings account and a high yield savings account elsewhere to balance convenience with better returns.

How SECU's savings account works

SECU members open a regular savings account by visiting a branch or applying online. The account has no monthly maintenance fee and no minimum balance requirement to open, though some balance tiers earn higher dividend rates. You can deposit and withdraw money at any time, and SECU insures deposits up to $250,000 through the National Credit Union Administration (NCUA)—the credit union equivalent of FDIC insurance.

Dividends are paid monthly or quarterly depending on your account type. The rate you earn depends on your membership category (such as employee, retiree, or family member) and sometimes on your account balance. SECU publishes its current dividend rates on its website, and you can call a branch or log into your account to see the exact rate for your membership type.

Why SECU's rates are lower than high yield savings accounts

Credit unions operate as member-owned cooperatives, not for-profit institutions. SECU reinvests earnings back into member services, lower loan rates, and fee waivers rather than maximizing returns on savings accounts. This model benefits borrowers (who get better loan terms) but means savers earn less on deposits.

Online banks, by contrast, have lower overhead costs than brick-and-mortar branches and can pass savings to depositors through higher rates. They compete aggressively on rates to attract deposits, especially for high yield savings accounts. Traditional banks often pay even less than SECU because they have physical branches and higher operating costs.

Other SECU savings products to consider

SECU offers certificates of deposit (CDs) with fixed terms ranging from three months to five years. CD rates are typically higher than regular savings account rates, though still lower than high yield savings accounts at online banks. The tradeoff is that your money is locked in for the CD term; early withdrawal usually means a penalty.

SECU also offers money market accounts, which combine features of savings and checking accounts. These accounts may have higher dividend rates than regular savings but often require a higher minimum balance and limit the number of withdrawals per month.

How to compare SECU savings to high yield accounts elsewhere

Check SECU's current dividend rates on its website or by calling your local branch. Write down the rate for your membership type and account balance. Then visit websites for online banks like Marcus, Ally, American Express Personal Savings, or Discover Bank to see their current high yield savings rates. Most online banks display rates prominently on their homepage.

Calculate the difference over one year. If you have $10,000 in savings, earning 0.10% at SECU means $10 per year; earning 4.50% at an online bank means $450 per year—a difference of $440. For larger balances, the gap widens. Consider whether the convenience of keeping money at SECU (same institution as your checking or loans) is worth the lower return.

Keeping money at SECU while using high yield savings elsewhere

You do not have to choose one or the other. Many people maintain a SECU account for checking, loans, or credit union membership perks while opening a high yield savings account at an online bank for money they want to grow. This approach lets you earn better returns on savings while keeping your primary banking relationship intact.

Transfer money between SECU and an online bank using ACH (Automated Clearing House) transfers, which typically take one to two business days and are free. You can set up recurring transfers to move money into high yield savings automatically, or transfer lump sums as needed. Both SECU and online banks support ACH transfers.

Frequently Asked Questions

Does SECU have any savings account that pays competitive rates?

SECU's CDs pay higher rates than its regular savings account, but rates are still typically lower than high yield savings accounts at online banks. If you can lock money away for a fixed term, a SECU CD may be worth comparing to online bank rates for the same term length.

Can I open a high yield savings account if I'm a SECU member?

Yes. SECU membership does not prevent you from opening accounts at other banks or credit unions. You can hold a SECU savings account and a high yield savings account at an online bank simultaneously without any conflict.

What happens to my SECU savings if the credit union fails?

SECU deposits are insured by the NCUA up to $250,000 per account type, the same protection level as FDIC insurance at banks. Your money is protected even if SECU fails, so safety is not a reason to avoid SECU savings accounts.

How often do SECU dividend rates change?

SECU adjusts dividend rates periodically, often in response to changes in the Federal Reserve's interest rate. Rates can change monthly or quarterly. Check SECU's website or call your branch to confirm the current rate before opening or comparing accounts.

Can I transfer money from SECU to a high yield savings account online?

Yes. Most online banks accept ACH transfers from SECU. You will need your SECU account number and routing number to set up the transfer. Transfers typically take one to two business days and are free from both sides.