Dedicated to Deposits: Deals, Data, and Discussion

5.25% 15-Month / 4.95% 7-Month CD at a MD/NJ/DC Credit Union (Andrews).

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Update 4/03/08: The CD rates were slashed. Please refer to the credit union's website for the latest rates.

Andrews Federal Credit Union has two very competitive certificate specials. One is a 5.25% APY 15-month CD, and the other is a 4.95% APY 7-month CD. The minimum deposit is $1,000. These are also available in an IRA.

Update 3/25/08: A commenter mentioned that there's a cap of $2,500 on the CD if you apply and fund the account online. However, there's no cap if you apply at the branch. Also, you can open multiple CDs. A reader also mentioned that this special CD should be available at least through March.

Membership is open to those who live, work, worship, or attend school in Washington, DC. Also eligible for membership include civilian and military personnel of Andrews Air Force Base, McGuire Air Force Base, and military installations in central Germany, Belgium, and The Netherlands; as well as over 200 employer groups throughout Maryland and New Jersey. Please see the credit union's Join Now Page for more details. Membership requires a minimum deposit of $5 in the share savings account.

Branches are located in Maryland, Washington DC, New Jersey and in Europe. The credit union is federally insured by the NCUA (Charter # 5754). It has $801.2 million in assets and 83,149 members.
  Tags: Maryland, CD rates, New Jersey, IRA rates

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Comments
28 comments.
Comment #1 by Anonymous posted on
Anonymous
yay thanks for the info.
Finally, there is one CU which is right next to my home. Got to love this. Let's see how fast E*Trade will transfer my money into Wachovia checking, I am gonna fund the CU CD account from my Wachovia checking.

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Comment #2 by Titanic (anonymous) posted on
Titanic
Lucky ****!

Oh how I wish I lived in the qualifying area. If I did, I would be camped out at this credit union.

5.25%? I am salivating at the thought.

I live in California. I have found no credit union willing to give me a 5.25% CD.

Anyone within range of this credit union, I urge you to run as fast as you can. The 5.25% rate cannot last long. And while you are enjoying your 5.25%, please don't gloat too much, as the rest of us cannot share in your glee.

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Comment #3 by Anonymous posted on
Anonymous
Well, it seems that Andrews does a hard credit pull. Due to some identity theft problems that I had long ago, I was rejected after spending 30-40 minutes filling out the online application. I am super disappointed and don't understand why these lame institutions do hard pulls in the first place. It's like you can't win for trying. I am sooooo upset!!!!

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Comment #4 by Anonymous posted on
Anonymous
This is a very good rate at this time.
I wouldn't give up. Call and speak directly with them.

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Comment #5 by Anonymous posted on
Anonymous
Does anyone have any input on "Family members"? The website doesn't specify what a family member is.

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Comment #6 by Anonymous posted on
Anonymous
Anonymous 5:32 PM, March 23, 2008

Did you open the cert online or at the branch? Do you have to join first and then open the CD later or at the same time?

Can someone please post the online process?

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Comment #7 by Trevor Plantaganent (anonymous) posted on
Trevor Plantaganent
The eligibility page says people who worship in the area can join. How about this: Find the name and address of a church in the area. Tell the Credit Union that you fly to the area once a month and worship at that church each time you come. Would this work? Of course, since you really don't fly there, you'd have to hope this credit union would allow you to open up the account via the mail. Comments? Anyone going to try this method?

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Comment #8 by Anonymous posted on
Anonymous
I called and spoke with two different CSRs, they both said that the rate was valid through the end of March.

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Comment #9 by Capcha Keys Are Too Hard To Read (anonymous) posted on
Capcha Keys Are Too Hard To Read
Southland Credit Union lowered their Liquid CD Rate to 3%.

It's a bloodbath out there, people, with more to come.

If you can jump on this 5.25% 15-month CD, you must do it.

Please, someone report if you can just lie and say you worship at a church in the area without them really checking, with you having an out of state mailing address.

Thank you to whoever can see if this would work.

We might not have another 5% 15-month CD for a very long time.

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Comment #10 by Anonymous posted on
Anonymous
I tried, as well, to apply online. Chex systems rejected us?!? We have 800+ scores, and numerous chex systems inquiries bc we've opened alot of new cds. After a failure online, the reps said you have to open thru mail or in branch. By mail app can take 5-14 days. UGH. Rates reset at the beginning of every month, according to rep. Rep says "the 15 month rate hasn't changed for a couple months." We'll see.

I guess we'll have to go to a branch in DC or MD before eo month if no mail application is received.

Good new is we can now receive free chex systems reports. Hmm, 5.25% 15mo, or free chex systems report?

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Comment #11 by Jurupa (anonymous) posted on
Jurupa
I'll bet you $10,000 that the 5.25% rate will drop on April 1st.

Of course the rates will go down.

No bank can afford to pay 5.25% for a CD. The bank would have to be desperate.

Banks will surely lose money on the deal if they pay 5.25% interest when the Fed Funds rate is almost 2%.

In April, the only 5% accounts will be Rewards Checking. They can pay 5% if the balance cap is small because they are hoping to profit on lots of debit card transactions. If the bank sees they are not making enough money on the debit card transactions, they will lower their rate (which some have already done).

I predict banks and credit unions were sold a bill of goods by the creators of the whole Rewards Checking thing. Promises of big money from debit card transactions. But banks are seeing now that many people will do the small transactions trick just to get them out of the way. Or, lots of people won't think it is worth it to have to jump through the hoops every month, so they will pass on Rewards Checking altogether.

I predict Rewards Checking will turn out to be a disappointment or a failure to many banks and credit unions.

Of course, I could be wrong.

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Comment #12 by Anonymous posted on
Anonymous
Did anyone else notice footnote #2? It says "rates may change at any time". Of course this is fine for checking/savings, but it's written under CDs too. Doesn't this defeat the very definition of a CD since it should be fixed-rate?

http://www.andrewsfcu.org/page.php?page=100

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Comment #13 by Ernesto Leucano (anonymous) posted on
Ernesto Leucano
The CD rate is absolutely locked for the time frame you sign.

It's just a general blanket statement, saying rates can change at anytime. But in the case of the CD, while the rate before one buys can change at anytime, the rate will stay solid once the CD is issued.

Say you go online and see a rate posted.

Then you go to the bank and they tell you the rate you just read online has been changed. You can then not sue the bank because they posted that their rate could change at anytime...and it did.

But again, you sign that piece of paper with the stated rate and you get that rate until the maturity date. Period.

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Comment #14 by Anonymous posted on
Anonymous
All, I work and live in DC. I just signed up online with no problems. I opened the savings account with $5 and the 15-month CD. But catch is that by applying online, you can only deposit $2500 max to the CD. I wonder if this is one of those "add-more" CDs where I can deposit more at a branch. If not, I wonder if I can open a second CD in person for more than $2500.

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Comment #15 by Anonymous posted on
Anonymous
Btw, I will call them and keep you guys posted.

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Comment #16 by Anonymous posted on
Anonymous
My niece and nephew go to school and live in DC, would that make me eligible??? Do they have to become a member first?? Time is running out ..

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Comment #17 by badger (anonymous) posted on
badger
All right, I just called and checked about the max $2500. (Btw, I'm the poster from 2 posts up)

The $2500 limit is only for online apps. If you go into the branch, you could open a CD without the limit. I also asked if I can simply open a second 15-mo CD, and no problems there. So I'm keeping my $2500 one and opening another CD when I go to the branch.

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Comment #18 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info about the online cap. I've updated the post with this info.

I wished I had spotted this CD deal earlier. Interestingly, I wasn't even searching for high rate CDs when I came across this.

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Comment #19 by badger (anonymous) posted on
badger
Yeah. This has to be the best CD deal out there. Too bad it's so localized.

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Comment #20 by Diane (anonymous) posted on
Diane
I ran into the 2,500 CD limit when I opened the CD online. Does anyone know if you can call a CSR and open another CD for more $$ over the phone?

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Comment #21 by badger (anonymous) posted on
badger
Diane, I called them and yes you can open more CDs over $2500 but it can only be done in a branch. Online there's no way for them to receive a fund apparently. On the phone, they said come in to a branch with a check written from your other bank and that's how you can start a new CD.

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Comment #22 by Anonymous posted on
Anonymous
CSR told me that a minimum of $100 needs to be kept in a Savings account so as not to be charged a maintenence fee on the required Savings Account. I wanted to keep $5 that's when she told me about the maintenance fee. She told me it is in the fee schedule that is presented while opening the account online.

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Comment #23 by Anonymous posted on
Anonymous
Are you sure the CSR didn't tell you the $100 is the minimum to earn APY?

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Comment #24 by Anonymous posted on
Anonymous
I am positive GSR told me to keep minimum $100 in savings account ot avoid saving account maintenance charge. If anyone is calling the CSR there, it would be great if you check and post what you were told.

I wired funds into my savings account yesterday morning. The wire was received in an hour and my savings account credited. I called then and asked for a certificate to be opened. That was yesterday morning. As of this morning the certificate has not yet been opened. My funds are still sitting in the 1% APY savings account. I called and was told it would be openened by 3 PM EST today.

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Comment #25 by Anonymous posted on
Anonymous
I called at 3 pm and the CD was not yet openend. The CRS told me that the concerned people were in a meeting. I told the CSR that I was pretty frustrated to see my funds parked in a 1% savings account. CSR asked me to wait, came back and told me that my CD would be openend shortly and it was opened in 15 minutes.

I am not local. I do have a relative who works in DC and that was the way I qualified for membership.

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Comment #26 by Anonymous posted on
Anonymous
"..the concerned people were in a meeting." That's funny!
Congrats!

May I ask what relative (Is it a direct relationship) can get you qualified? Does your relative have to be a member of the CU?

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Comment #27 by Anonymous posted on
Anonymous
I opened the CD in person on Saturday. Very smooth. CSR was competent and friendly. Andrews FCU does also participate in shared branch program, so when CD matures, one can withdraw funds at any participating credit union.

They have relaxed their membership requirements recently, so you can join if you are a Sam's Club member.

The CSR said that the CD rates are expected to hold through Monday 3/31.

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Comment #28 by Anonymous posted on
Anonymous
FWIW, The rate changed on both certificates. The 7 month APY is now 3.25% and the 15 month is 3.50%.

Fortunately I got the 15 month 5.25% Certificate on Monday the 31st just before the change.

Unlike the previous poster, I found the CSR rather unenthusastic and barely competent. But I was already there and a good deal is a good deal.

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