Dedicated to Deposits: Deals, Data, and Discussion

6.25% 24-Month CD at a Multi-State CU and $100 Sign-up Bonus (Justice FCU).

POSTED ON BY

Justice Federal Credit Union
Update 3/17/07: 6.25% CD stopped being advertised at JFCU late yesterday.

Justice FCU is offering a special 6.25% APY 24-month share certificate. The minimum deposit is $1,000. A higher rate of 6.35% APY is available for a Jumbo 24-month CD with a $100K minimum. This is available for both a regular and IRA certificate. According to the membership disclosure there is a 180 day interest penalty for early withdrawal on CDs with terms of 13 months and longer.

JFCU is also offering a $100 bonus for joining, signing up for Free Web BillPay and paying one bill within the first month of signing up. The $100 will be credited to your JFCU account one month after your first bill has been paid. The offer lasts through 4/30/07. The CD small print does states that the "promotional APY of 6.25% / 6.35% cannot be combined with any other offers." So it's not clear if you can do both. But if the CD special ends before you can open the CD, at least you can receive this bonus.

Membership eligibility is based on employment in Select Employer Groups and membership in certain law enforcement organizations. The membership page states:
If you're not eligible to join Justice FCU through any of the employee groups listed above and you are not a relative of an eligible individual, you can still join Justice FCU by first becoming a member of the National Sheriffs' Association (NSA). Click here to join NSA!

The membership webpage takes you to the NSA online sign-up application. From here it's not clear what the membership fee is. The lifetime membership page implies that the annual fee is $35. You don't have to continue your membership in an association once you're a member of a credit union.

In addition to the NSA, membership into the National Native American Law Enforcement Association (NNALEA) qualifies you for JFCU membership (see JFCU's affiliated groups page). According to the NNALEA, membership is open to both Native and Non-Native Americans. Members do not have to be law enforcement officers. The National membership fee is $15.

JFCU's membership application is available online to be printed and mailed. It appears you can join and open a CD at the same time. The application also includes a designation for a POD Trust Account.

Branches are located in Washington DC, Los Angeles, San Diego, New York, Texas, Virginia and West Virginia. The credit union is federally insured by the NCUA. It has $393.6 million in assets and 43,036 members.

Thanks to the reader who mentioned JFCU and its bonus in the finding deals post.

Please refer to this 1st update post and this 2nd update post for additional info on JFCU and these promotions.

[Update 3/14/07: Added back link to NNALEA. Added link to third update.]
[Update 3/9/07: Removed IRA early withdrawal penalty exemption. Penalty applies to all. Added link to new post.]
[Update 3/7/07: Removed links to NNALEA until more info about this association is found. See comments.]

  Tags: Justice Federal Credit Union, CD rates, checking account

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Comments
43 Comments.
Comment #1 by Anonymous posted on
Anonymous
I tried joining the national native american last night with my credit card and was declined twice. Is it possible there could be a problem with there web site because i couldent join. has any one else tried to join but wasnt able to.

1
Comment #2 by Sree (anonymous) posted on
Sree
$100K is not minimum, $1000 (or $1K) is minimum, check their web site

I am kind of scared to find the minimum on your post :-)

1
Comment #3 by Anonymous posted on
Anonymous
$1k min to earn 6.25% and 100k min to
earn 6.35%.

3
Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Sorry for the confusion, the 6.35% APY requires $100K. The 6.25% APY requires only $1K.

About the NNALEA website, another reader also reported problems. He noted that the 1-800 number on top is not valid. I called the 1-877 number on the bottom and there was only an answering machine. I'll try again later, but for now you may want to stick with the NSA. I've removed the links to the NNALEA until I get more info on them. I've confirmed the website has been around since 2002, and President that's listed on the officers page has been mentioned at boston.com. So my guess is that it's just a small association with a poorly maintained website.

1
Comment #5 by Anonymous posted on
Anonymous
Seems that you must print the application and mail. Has anyone figured if you can join on the internet? Rate looks good but I have been investing in Navy Federal CU, 15mo 6%, and wonder is I should take a risk with JFCU on a 2yr 6.35%. Banking Guy, what do you think? I respect all the info you are giving us.

1
Comment #6 by Anonymous posted on
Anonymous
Continued from previous message. I also just tried joining the National Native American org and my credit card was declined and I am a card holding Native American. I also called the 800 number listed and that number was no longer good. Interesting!

1
Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
I have to admit that JFCU is not a large credit union. It has less than $400 million in assets. This may impact how long they'll be able to maintain this promo. Several cases in the past I've seen small banks and credit unions quickly end a very good deal. So keep this in mind. They are federally insured by the NCUA. So if you properly qualify for membership and keep under the NCUA limits, you should be safe.

About NNALEA, I'm still unable to contact them. I still only get the answering machine when calling their 1-877 number. My email to their address info@nnalea.org got bounced back. So it looks like this organization is not well organized.

I haven't tried the NSA's application. This may be a better alternative.

1
Comment #8 by SVG (anonymous) posted on
SVG
The deal is good, however their poor information management (both thru their web site and telephone system) is creating a hurdle.

The fact that they have offered such a deal makes me believe that they need some additional business, however their poor information management is going to make them lose some easy business that they otherwise would have gotten.

- SVG

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Comment #9 by Anonymous posted on
Anonymous
I agree with the need for caution re the NNALEA. One of their numbers, the 1-866-xxxx number, goes to a recording. That recording says for more information to call a 1-876 number. This is in Jamaica. I almost called it, then caught myself just before I dialed. I strongly suggest you NOT call the Jamaica number. I agree with Banking Guy's evaluation of the NNALEA. I do not believe they will be a help with JFCU membership because of issues relating to the time it will take to join the NNALEA organization.

1
Comment #10 by metrocard (anonymous) posted on
metrocard
IIRC, creditboards.com caused a major run on this place becuase they were apparently handing out credit cards to anybody who wanted one. I'm wondering if this promo isn't the other side of that escapade, that they now need more deposits to counter the credit granted...

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Comment #11 by Anonymous posted on
Anonymous
Thanks, Metrocard. It's a poor idea for ANY financial institution to dispense credit to folks who might not be worthy of it. For me, this sort of kills the attractiveness of the 100K deal, where there is some exposure. I always wonder anyway why some institutions set the bar at 100K, when setting it at 99K would protect us. And they know it.

1
Comment #12 by Anonymous posted on
Anonymous
There's way too much paranonia concerning the NNALEA. Take a look at their newsletter (PDF on website), and call one of the officers listed on page 12. You'll find out that they are very nice human beings. Granted, their online membership process could use some work, but please don't go off the deep end and accuse anyone of trying to rip you off.

1
Comment #13 by Anonymous posted on
Anonymous
To focus on the deal itself:
The CSR told me there is a single 24-month rate, that the 6.35% jumbo was a misprint.

The application must be mailed with notarized copy of driver's license, check to fund the account, and proof of membership in NSA or other. You can join the NSA online via credit card and get an email verifying payment although it does not provide a membership number. That can be used as proof of qualifying.

The CSR says a hard credit pull will be made with Equifax to verify identity.

1
Comment #14 by SVG (anonymous) posted on
SVG
Anon,

>>The CSR told me there is a single 24-month rate, that the 6.35% jumbo was a misprint.<<

Hmm ... a rather convenient mistake for the CU.


>>The application must be mailed with notarized copy of driver's license<<

Err ... sounds just like the Huron River requirement. (And we know what happened to Huron afterwards.)


>>The CSR says a hard credit pull will be made with Equifax to verify identity.<<

Oh no ... So despite having a notarized copy of driver's license they want to further verify identity ? (What's next ... notarized/police-certified finger prints ? ... notarized/police-certified/doctor-verfied retinal scan ? *smile*)

I guess I'll pass.

- SVG

1
Comment #15 by Anonymous posted on
Anonymous
Errr... It does seem too much of a pain in the neck. It just tells me how much I love Pentagon FCU.

1
Comment #16 by Anonymous posted on
Anonymous
I've tried to find their Bankrate.com rating and how many stars they have in their rating.

I cannot find them. This makes me uncomfortable. Has anyone found them on this website?

I'm trying to get the Safe and Sound Ratings on the bankrate.com website.

1
Comment #17 by Anonymous posted on
Anonymous
Here's their financial summary:

http://webapps.ncua.gov/ncuafpr/OnlineFPR.aspx?cu_number=151

Let's see, they have $393m in assets and 43,036 members and NCUA insured. I would not worry too much...

1
Comment #18 by Anonymous posted on
Anonymous
The bankrate ratings are 4 stars/2, and bauer is 4 stars. I found no recent administrative orders against Justice on the NCUA site. It had a higher than average return on average assets (ROA) than the industry for the first three quarters of 2006.

As for all institutions, you should calculate the total return on bankrate's CD calculator and deposit an amount that stays within the insured limit as of the end of the 24 month term.

1
Comment #19 by Anonymous posted on
Anonymous
A lot of good points here. I like the retinal scan approach. But seriously, I now realize what I wrote earlier re 99K was erroneous and I am sorry. I was thinking of MONTHLY interest payout. I hope this did not put anyone astray. This account has QUARTERLY interest payout and there is no monthly option. So if you start with 99K you will go over the NCUA protection. Still am trying to get my act together on this one. Am sure it's a fine institution, but best to remain on the safe side I think.

1
Comment #20 by Banking Guy (anonymous) posted on
Banking Guy
Anonymous, thanks for finding out the details of JFCU's and NSA's application process.

For the NSA, was it a $35 membership fee?

1
Comment #21 by Anonymous posted on
Anonymous
Bank guy, would you say this cu is safe to deposit your money into. Because i was going to open a cd for 50k and a checking account to get there promo of $100. Would you deposit that large amount of money ($50,000) or would you be leary. I would like to know if you think its a safe credit union or could you lose your monry and be broke. Any response would be helpfull.

1
Comment #22 by Anonymous posted on
Anonymous
Yes, joining NSA was $35. There was a cheaper membership for students ---I think $25.

1
Comment #23 by Anonymous posted on
Anonymous
This credit union is strong financially. Has lots of cash on hand and a low amount of delinquent loans from my research. It's been in operation since 1935 so I don't think it's much of a risk.

1
Comment #24 by Anonymous posted on
Anonymous
I looked at the membership application form and in nowhere it asked for a notarized driver licence.
Can someone confirm the Notarized driver licence is required. Is it required for the share cert only or for membership? Thanks for sharing.

1
Comment #25 by Anonymous posted on
Anonymous
when you call the csr will tell you that a notarized copy of your drivers licence is required for the checking account as well as the cd. one thing i dont like is that the csr told me that they do a hard credit pull. Which means your credit score is likely to go down if you open a account with them. that is why i will go with world savings and get there 5.51% cd. at least there you wont get a hard credit pull.

1
Comment #26 by Anonymous posted on
Anonymous
Is there any guideline that we should not have over # of hard credit pull within # of months? I have at least 2 hard credit pull within 2 months. Should I wait for next best rates??

1
Comment #27 by Anonymous posted on
Anonymous
It doesnt matter how many credit pulls you have within a certin period. The problem is that the more you have your credit score will be lower so if you want a goog yielding cd and dont mind another hard pull then buy. I would like to know how muck of a drop on your credit score one or two hard pulls would do. Does anybody know or is there a way to find out. How about you bank guy, do you know what one or two hard pulls would bring your score down by. I would like to find out.

1
Comment #28 by Anonymous posted on
Anonymous
Hi, I just called this AM and they said that the IRA CD does NOT allow people over 59 to take distributions without a penalty. The 180 days worth of interest penalty still holds for IRA CDs.

Did anyone else (see SVG's comment below) hear that the jumbo rate was not a true 6.35%? I didn't think to ask that question. I will call again tomorrow AM.

Bankguy, you rock for havingt his blog!

1
Comment #29 by highyield (anonymous) posted on
highyield
your the best Banking Guy !!!

1
Comment #30 by Jasman (anonymous) posted on
Jasman
I just spoke with a CSR at the CU (very friendly), and he said the promotional rate for the Jumbo CD is not a misprint. He also told me he didn't think the credit check would be a significant mark on your score (he mentioned a couple of scores it might affect, and I know nothing about this stuff). If your credit is good, he thought it shouldn't be a problem. Also, he confirmed the NNALEA membership as acceptable for CU membership, and either a confirmation or membership number is acceptable proof. Finally, he said you can get the $100 credit on using bill pay with a new checking account and then use that account to fund the CD - the only exclusivity is among any two CD deals. He said both deals are slated to last through March, and potentially a little longer.

1
Comment #31 by Jasman (anonymous) posted on
Jasman
Oh, one more thing. If you open a checking account and fund the CD from that, be sure to specify that you want dividends (or interest [?] ... dividends is what the CSU said) to accrue within the CD, not to pay out into your checking account, because then you won't get the full APY rate.

1
Comment #32 by Banking Guy (anonymous) posted on
Banking Guy
Thanks everyone for helping with all the details.

I've tried to summarize all of these in this new post.

1
Comment #33 by Jasman (anonymous) posted on
Jasman
Thanks for the update. Excellent summary. I've contacted the NNALEA (using a 202 area code number - they are there) and will report back if I get better details. I got all the way to the payment page for a membership, but I want to confirm that I'll get a membership or confirmation number soon enough to complete my JFCU application quickly.

1
Comment #34 by Anonymous posted on
Anonymous
To Jasman
I could not find the "/blog/202" area code number. Have you gotten a response as to how long it will take for confirmation--by mail, or e-mail?
Thank you

1
Comment #35 by Jasman (anonymous) posted on
Jasman
I called the number for the current president of the association. I have gotten an email response that the 877 number on the website is the current fax number, and that I can fax in an application. I've now asked how long it would take to get a confirmation or membership number, and I'm awaiting a reply. I'll post back when I find out.

1
Comment #36 by Anonymous posted on
Anonymous
Can anyone explain to me why banks do a credit pull, when you open a Certificate of Deposit.

Most banks require a copy of your drivers license anyway to comply with the Goverment.

You deposit money, where is the credit part ??

1
Comment #37 by banks (anonymous) posted on
banks
Seems that you must print the application and mail. Has anyone figured if you can join on the internet? Rate looks good but I have been investing in Navy Federal CU, 15mo 6%, and wonder is I should take a risk with JFCU on a 2yr 6.35%. Banking Guy, what do you think? I respect all the info you are giving us.

bank directory

1
Comment #38 by Anonymous posted on
Anonymous
To Jasman
Have you received a reply or confirmation on your efforts to join the NNALEA? Thanks DJW

1
Comment #39 by Jasman (anonymous) posted on
Jasman
The NNALEA contacted me today. They were very friendly, and are trying to cope with memberships while a couple of folks are out on maternity leave. They say they can turn around a confirmation or membership number right now in a few days, and anyone can apply by fax at the 877 number on their website. They also say that they plan on the online application process to be fixed by tomorrow, so maybe wait to try that.

1
Comment #40 by Daysha (anonymous) posted on
Daysha
Note: You need 8 1/2 by 14 inch paper to print the application.

If you sign up for the Freedom Checking (to get the bonus after the on-line billpay)- checks are $13.95. You don't need to get checks though- a debit card is free.

1
Comment #41 by Anonymous posted on
Anonymous
Just out of curiosity (as I am inclined not to trust this credit union at this point--sometimes one should not push things into happening)-- I received an email with an id number from NNALEA--is that sufficient, or do they need some sort of card from them too?

1
Comment #42 by Jasman (anonymous) posted on
Jasman
NNALEA sent me a membership number. JFCU told me that's sufficient. They can always verify it.

1
Comment #43 by credit card holder (anonymous) posted on
credit card holder
I still won't trust a small credit union. If they cann't even manage their customer support service how can they manage money?

1