Dedicated to Deposits: Deals, Data, and Discussion

4.50% 14-Month IRA CD at Apple Federal Credit Union - Easy Membership

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Apple Federal Credit Union
Apple Federal Credit Union has recently come out with a special 14-month IRA certificate with an APY of 4.50%. Minimum deposit is $500, and the maximum is $500,000. This promotion is listed in the credit union's January promotion page as of 1/04/2009. According to the small print, this offer is scheduled to last through February 15, 2009, but it's subject to change at any time.

From November through December this credit union had been offering 5.10% 5-year CDs. The rates are down for January, but they're still competitive. The 60-month APY is now 4.60% for a $50K minimum (4.50% for $500 minimum). They still have a 5% APY, but this requires a 10-year term. These rates are listed in the credit union's rate table as of 1/04/2009.

A reader has reported being told by the credit union that members of Northern Virginia Athletic Directors, Administrators, and Coaches Association (NVADACA) qualify for credit union membership. NVADACA is listed in the credit union's field of membership list. Membership into NVADACA is open to anyone. There is a $10 membership fee. For more ways to be eligible to join Apple FCU, please refer to the credit union's Membership Page. Membership requires a minimum balance of $5 in the regular savings account.

Apple FCU is located in Fairfax, Virginia and has additional branches in Centreville, Falls Church, Herndon, Manassas, Alexandria, Springfield, Stafford, Winchester, Woodbridge and Washington, DC.

The credit union is federally insured by the NCUA (Charter # 11307). It has $1.0 billion in assets and 90,481 members.

Thanks to the reader who left a comment on this new IRA special.

Other Options for IRA Certificates of Deposit

If you're looking for CD deals for an IRA, it can be a hassle to do the trustee-to-trustee direct transfers and make sure it's completed before the offered rate expires. One alternative is brokerage CDs in an IRA account. Refer to my previous post for a review of some brokerage options.
  Tags: Apple Federal Credit Union, Virginia, CD rates, IRA rates

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Comments
6 comments.
Comment #1 by Anonymous posted on
Anonymous
Wish they had this rate for regular (non-IRA) CDs. What is the idea: indirectly limit the maximum amount to the 5k IRA contribution limit? Are funds in an IRA CD treated any differently by the bank as far as their reserve requirements etc. goes?

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Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
I think they allow funds from an IRA transfer, so the IRA could be much more than $5K. That's probably why banks and credit unions will often have better deals for IRAs. Setting up an IRA or a trustee-to-trustee transfer is a lot of trouble, so the customer is less likely to leave when the CD matures.

1
Comment #3 by Anonymous posted on
Anonymous
Didnt realize the IRA transfer angle. So here is an interesting theoretical possibility:

Liquidate current IRA holdings which are mostly mutual funds (MFs); transfer that to Apple FCU to open the CD. Use equivalent amount of money to purchase back the the same MFs in a non-IRA a/c; When the CD matures, reverse the steps.

Too much work and perhaps potential for loss of interest etc. when money is in transit, fee to open/close an IRA (many custodians charge that). That is why said it is theoretical.

1
Comment #4 by Anonymous posted on
Anonymous
I walked past the Apple FCU office in Falls Church, VA and saw a sign in their window advertises 5% 5-month CD. I don't know the details. I didn't spot anything about it on their web site.

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Comment #5 by Anonymous posted on
Anonymous
This sounds worth looking into. Open to outside Virginia? Fyi, in transferring IRAs, what we have been doing is transferring the IRA(maturing or bank closed and taken over, like Imperial Capital slashed our rates) into their senior mm checking accnt, so you have a limited number of checks. Then, when you decide where to transfer the IRA, it makes it FAR easier than an inter-bank IRA transfer, you call the new bank & set up the IRA paperwork(mail/fax) then just write them a check and mail it. Less to go wrong.

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Comment #6 by Anonymous posted on
Anonymous
sorry- i see this post is 1-yr old now, the rate is 3% now. Not as exciting.

1