Best CD Rates In Decatur, IL – and an Option That Pays 3x the Interest

Best CD Rates In Decatur, IL – and an Option That Pays 3x the Interest

CDs, or certificates of deposit, have long been a popular way to safely earn some interest on your money. They avoid the volatility of the market, and they have no fees.

If you’re shopping around for the best CD rates in Decatur, IL, we’ve done some research to compile them in one helpful place for you. Local credit unions and banks offer better CD rates than national banks, giving you a great reason to support local businesses.

While bank CDs do check off several boxes for retirees looking to preserve their nest egg, there is an alternative that pays 3x the interest. Here’s everything you need to know about earning interest safely here in Decatur, IL.

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Average CD Rates Across the Country

COVID-19 sent shock waves across the globe, and national CD rates have dropped down to less than 0.40%.

The Federal Deposit Insurance Corporation (FDIC) updates national CD rates weekly, and for the week of September 7, 2020, the national rate for a 5-year CD is just 0.39%.

Here are the average CD rates for the week of September 7, 2020:

  • 1-month CD: 0.05%
  • 3-month CD: 0.08%
  • 6-month CD: 0.13%
  • 1-year CD: 0.19%
  • 2-year CD: 0.25%
  • 3-year CD: 0.30%
  • 4-year CD: 0.33%
  • 5-year CD: 0.39%
The longer you park your money, the higher the interest rate will typically be.

Average interest rates on savings accounts are also abysmally low at 0.05%. Money Markets are averaging at 0.04% across the country.

Here’s the good news: these are national averages, and if you shop locally here in Decatur, Illinois, you’ll find interest rates that are much higher! Many local banks and credit unions are offering double the national average on CDs.

Where Can I Purchase a Certificate of Deposit (CD)?

There are many places you can go to invest in CDs, including:

  • Banks: almost all banks offer CDs, and if the bank is federally insured, the CD is insured up to $250,000. That insurance covers all accounts in your name at the same bank, though – not each individual CD or account at that bank.
  • Credit unions: credit unions often pay higher interest rates for CDs versus banks – they don’t need to maximize profits for shareholders, and they don’t pay federal income taxes. Also, when you get a CD from a credit union, it’s technically called a “Share Certificate."
  • Brokerage firms or independent salespeople: when you purchase a CD through a brokerage firm or independent salesperson, they are called brokered CDs. Be wary of buying a brokered CD as anyone can sell them without any license or certification. Because of the lack of oversight, brokered CDs are highly susceptible to fraud (U.S. Securities and Exchange Commission).

Share Certificates vs. CDs

In practice, a certificate of deposit (CD) and a Share Certificate are the same thing. They both offer an interest rate over a term. The only real difference is Share Certificates are offered by credit unions while CDs are offered by banks.

At the credit union, you earn dividends on your money, while at a bank, you earn interest.

For the purposes of this article, we’ll use the term CD to describe both, but just know there is a slight difference. If you do see the term “Share Certificate,” for all intents and purposes, it’s the same thing as a CD.

Why Buy a CD In Decatur, IL?

Local banks and credit unions – no matter where you are – will typically give you a better interest rate on your CD than big, national banks.

The nearest megabranch is likely offering mediocre interest rates, not to mention their fees are usually higher than a local bank and the rigid systems of a big organization can be frustrating. Sometimes, that hometown service is what you need!

If you live in the Decatur, IL community, why not support a local bank or credit union and take advantage of a higher interest rate?

Shop locally when buying a CD or Share Certificate. You can earn around double the interest when compared to the national average.

Best CD Rates In Decatur, IL

Let’s take a look at the best CD rates available in Decatur, IL from Illinois-based banks and credit unions. The minimum opening deposit is $1,000 unless otherwise noted.

You can find CD rates for national banks easily, but they typically aren’t as competitive (or friendly) as shopping locally.

5-Year CD Rates In Decatur, IL

1-Year CD Rates In Decatur, IL

If you deposit more than $10,000, many of these local credit unions and banks offer an even higher interest rate. A deposit of more than $50,000 can put you in an even higher tier. 

For example, Land of Lincoln is offering a 1.04% interest rate for a 5-year CD on deposits greater than $50,000.

CD Alternative That Pays 3x the Interest

It’s nice to know that when you support local credit unions and banks, you can actually get a much higher interest on CDs. However, perhaps you’re looking for another way to earn interest safely that has a more attractive rate of return.

A fixed annuity is another way to earn interest safely. Like a CD, a fixed annuity is protected up to $250,000, and there is no risk of losing any of your principal. Both CDs and fixed annuities protect against market losses by offering a fixed return over a period of time.

A fixed annuity is a great alternative to a CD. For those looking to earn 3x the interest, a fixed annuity can help you outpace inflation with zero risk.

They also both avoid probate since you can name a beneficiary, a great way to avoid probate costs and timely delays.

Advantages of a Fixed Annuity

A fixed annuity has a few advantages over a CD including a much better interest rate, which allows you to outpace inflation. Fixed annuities also have lifetime income options, and unlike CDs, they grow tax-deferred.

You should know that fixed annuities typically have a minimum deposit of $10,000 (CDs are usually $1,000), and there are surrender charges if you withdraw money before the term is up. 

However, some companies offer free withdrawal features, which gives you access to the earned interest or even a percentage of your deposit with no surrender charge. If you withdraw money from a CD before the term is up, you’re also penalized, but in the form of the earned interest.

5-Year Fixed Annuity Rates In Decatur, IL

Here are some examples of our top 5-year fixed annuities available in Decatur, IL as of September 10, 2020. These all have a $10,000 minimum opening deposit unless otherwise noted.

  • Upstream: 3.45%
  • Sentinel Security Life: 3.35% ($2,500 minimum deposit)
  • Manhattan Life: 3.20%
  • Atlantic Coast Life: 4.15% in year 1, 3.15% in years 2-5 ($5,000 minimum deposit)
  • Liberty Bankers Life: 3.00%
  • Equitable: 2.85%
  • Investors Heritage: 2.85%
  • Oxford: 2.75%
  • KSKJ Life: 2.75%
  • ELCO Mutual: 2.25%

For many of these companies, you can add a 10% free withdrawal feature that takes effect after the first year. That feature will deduct a small percentage of the interest. Adding a free withdrawal feature is very popular as it offers flexibility.

*Many times, interest rates change on the first of the month. Call us at 217-423-8000 to confirm the best interest rate.

5-Year CD vs. 5-Year Fixed Annuity

If we compare apples to apples, you can see why so many retirees choose a fixed annuity as a way to grow their nest egg.

Let’s say you have $100,000 to deposit here in Decatur, IL for a term of five years.

CD vs. Fixed Annuity Comparison Chart

You have the same protections with a fixed annuity as you do with a CD, but you get extra features like tax-deferred growth, free withdrawal options, and more than 3x the interest.


In retirement and beyond, your financial focus shifts from accumulation to preservation. Moving funds from the market to a safe place is a priority, and a bank CD or credit union Share Certificate is often the first safe place that comes to mind.

If you choose to purchase a CD or Share Certificate, shop locally! Local credit unions in Decatur, IL like CEFCU and 1st MidAmerica offer rates that are double the national average.

And if you’re interested in earning more than 3x the interest, consider a fixed annuity as an alternative. Fixed annuities are a safe, guaranteed way to earn interest in retirement.

Give us a call at 217-423-8000 and ask us about fixed annuities today.

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