Freedom Credit Union (PA) Boosts Long-Term CD Rates
Most banks and credit unions have been concentrating on raising rates on their short-term CDs, leaving the longer-term CDs treading water. This rate increase inequity has led to inverted yield curves, but as DA reader, Robb, noted in a recent Freedom Credit Union (Freedom CU) Forum post,
No inverted yield curve here. Most rates bumped 10-40 bps.
Following last week’s rate increases, Freedom CU is offering competitive rates on its longer-term CDs: 36-month (4.85% APY), 48-month (4.90% APY), and 60-month (4.95% APY). The minimum opening is $500, with no stated balance cap. The CDs are also offered as Youth CDs (members 25 years and younger) earning the same APYs, but requiring a lower $250 minimum deposit.
The CDs are also offered as IRA CDs (Traditional, Roth, ESA), earning the same APYs with the same deposit requirements.
As stated in the Rate and Fee Schedule for CDs page, the Early Withdrawal Penalty reads as follows:
Terms of 12 to 36 months – 180 days of dividends
Terms of 48 to 60 months – 360 days of dividends
The amount of the penalty will not exceed dividends earned through the date of withdrawal.
Availability
Headquartered in Warminster, Pennsylvania, Freedom Credit Union’s field of membership (FOM) experienced significant changes about five years ago. A nationwide easy membership requirement (EMR) through the American Consumer Council (ACC) was established at the beginning of 2018. By August 2018, the scope of EMR had significantly narrowed, with only residents of Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia, and the District of Columbia qualifying through ACC membership.
At the beginning of this year, Freedom CU dropped the ACC EMR entirely. According to CSR, affiliations with any third party no longer qualifies for membership eligibility.
LSS, the Freedom CU FOM is now strictly community-based, with individuals who live, work, worship, attend school, or volunteer in the southeast Pennsylvania counties of Bucks, Chester, Delaware, Montgomery, or Philadelphia eligible to join.
Relatives of an existing Freedom CU members also qualify for membership.
Account Opening
Joining Freedom CU and/or opening a CD can be done online, by phone (215.612.5900), or at any of four full-service Pennsylvania “access centers” (branch locations) in Abington, Philadelphia (2), and Warminster.
All Memberships are required to have a Freedom Savings account with a minimum
balance of $5.00 to be a member in good standing with Freedom Credit Union.
Freedom CU participates in both the CO-OP Shared Branch network and the ATM network.
Funding and Other Details
The following information is from a conversation with CSR.
- Funding – ACH, internal transfer, or shared branch transfer. Note: online application limits funding to $2.5k. Opening a CD with a larger amount can be done over the phone or in-branch.
- CO-OP Shared Branch Participant – Yes.
- Dividends – Compounded/credited monthly and can automatically be transferred to a Freedom CU savings/checking account.
- Maturing Funds – Wire ($20 fee), cashier’s check, or internal transfer to an existing savings/checking account.
- Beneficiaries – Unlimited with equal shares, Social Security numbers required for all named beneficiaries.
- Grace Period – 10 calendar days before automatic renewal.
- Credit Check – Soft pull will be run as part of the application process.
Credit Union Overview
Freedom Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.22% (excellent) based on December 31, 2022 data. In the past year, Freedom CU has increased its total non-brokered deposits by $37.4 million, an excellent annual growth rate of 3.87%. Please refer to our financial overview of Freedom Credit Union (NCUA Charter # 60275) for more details.
Chartered in 1934, Freedom Credit Union is currently Pennsylvania’s eleventh largest credit union, with more than 68,700 members and assets in excess of $1.1 billion. Between 2011 and 2014, Freedom CU merged with two Philadelphia area church-based credit unions, and also assumed Philadelphia-based Mayfair Credit Union’s members and deposits following an NCUA liquidation.
How the 36-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $10k or less, only one credit union has a higher rate than currently offered on the Freedom Credit Union 36-Month CD. The following table compares the 36-month CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
How the 48-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $10k or less, only one credit union has a higher rate than currently offered on the Freedom Credit Union 48-Month CD. The following table compares the 48-month CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
How the 60-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $10k or less, only one credit union has a higher rate than currently offered on the Freedom Credit Union 60-month CD. The following table compares the 60-month CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 3/27/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
