Dedicated to Deposits: Deals, Data, and Discussion

High Yield CDs at Air Academy FCU


Air Academy Federal Credit Union
The 5% CD special has ended at Air Academy Federal Credit Union, but the credit union still has some very competitive certificate and IRA rates. Since there's an easy way to qualify for membership, I thought this credit union deserved another post specifically on these regular CDs. With the recent large declines in rates at all banks and credit unions, these CD rates are near the top for all terms. As a comparison, the best 1-year CD yield currently listed at Bankrate is 3.80% APY at State Farm Bank. The current 12-month CD yield at Air Academy FCU is 4.60% APY.

Below is the full list of yields and early withdrawal penalties for deposits of $10,000 or more:

Certificate Yields as of 2/16/08:

Term APY early withdrawal

6 months 4.10% 90 days
12 months 4.60% 90 days
24 months 4.65% 180 days
36 months 4.69% 180 days
48 months 4.76% 365 days
60 months 4.80% 365 days

Certificate of Deposit Details

The early withdrawal penalties are listed in the Agreement and Disclosure document that's available in the credit union's online application. Below are some additional CD details. These are based on the disclosure, the credit union's certificate webpage and from my conversation with the credit union representative:
  • Rates are 10 basis points lower for a $500 minimum deposit
  • Same rates for IRA certificates for terms of 12 months and longer
  • Early withdrawal penalty will not reduce principal (disclosure)
  • 10 day grace period after maturity in which you can make withdrawals without penalty (disclosure)
  • Dividends computed daily and paid monthly
  • Dividends can be credited to your certificate principal, to your savings account, or mailed directly to you
  • If CD opened online, rate locks at time of application (CSR)
  • Can be funded with an ACH electronic funds transfer
  • There's no limit on the deposit size in the online application (CSR)
  • Rates typically only change on the first of the month (CSR)

It is common to receive wrong info from customer service reps, so if you have learned anything that's different, please leave a comment.

High Yield Reward Checking

Another reason to join is for the high yield reward checking account (Max Checking) which still has a yield of 6.01% APY for balances of up to $50,000. As is typical with reward checking, monthly requirements must be met to receive this yield. I first reported on this account in this October post.

Qualifications for Membership

Update 4/04/08: I've been informed by the credit union of a mistake in their online application which stated that members of the USAFA Association of Gradutes were eligible to join the credit union. Customer service reps who claimed this were also apparently wrong. Here is what the credit union rep stated:
Only employees and employees' families of the USAFA Association of Graduates are eligible to join AAFCU at this time. There are many other ways to join AAFCU and we serve members around the globe. Visit and click on membership for details.

Credit union membership is open to members of the USAFA Association of Graduates. This qualification is listed in the online application under military. The CSR also confirmed that both members and employees of this association are eligible. Anyone can join this association for $50 (see above).

Credit union membership is also open to all military (active and retired) and their immediate family members. Employees, students and their families of several Colorado school districts are also eligible to join. Please refer to the credit union's eligibility page for the details.

Online Application

There's an online application which allows you to join and open accounts. Electronic funds transfer can be done to fund the accounts, and according to the CSR there are no dollar limits on this funding. At the end of the application, you are required to print and mail the signature card and a copy of your driver's license. Membership requires a minimum deposit of $5 in the share savings account.

General Information

Branches are located in Colorado Springs, Castle Rock, Elizabeth, Fountain, Highlands Ranch, Monument and Parker, Colorado. The credit union is federally insured by the NCUA (Charter # 10600). It has $300.9 million in assets and 44,759 members. gives it a rating of 4 out of 5 stars (sound) based on 9/30/07 data.

  Tags: Colorado, CD rates, Air Academy Federal Credit Union, IRA rates

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Comment #1 by Anonymous posted on
Banking Guy,
AAFCU is also a COOP member, which means you have access to tons of ATM's where you can deposit funds thru a third party CU, for deposit to your AAFCU.

In addition, in March, AAFCU will become a CU Swirl member. CU Swirl membership provides you with even more ways to transact your business with a local, CU Swirl member as though you were at the AAFCU location.

Comment #2 by Air Academy FCU (anonymous) posted on
Air Academy FCU

I am an employee at Air Academy Federal Credit Union (AAFCU). I would like to clear up a misconception. Only employees and employees' families of the USAFA Association of Graduates are eligible to join AAFCU at this time. There are many other ways to join AAFCU and we serve members around the globe. Visit and click on membership for details.

Comment #3 by Roger (anonymous) posted on
I recieved an e-mail that the rate on the Max Checking is dropping to 3.5% beginning May 1st.