Dedicated to Deposits: Deals, Data, and Discussion

4.88% 5-Year CD and Other High CD Rates at Northwest FCU in Virginia - Easy Membership

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Northwest Federal Credit Union
Update 3/03/09: The Add-On CD rates have fallen.

Update 2/21/09: The standard CD rates have fallen. Please check the credit union's website for the latest rates.

Northwest Federal Credit Union actually increased its CD rates this week which is rare these days. For a $25,000 minimum deposit, the new CD rates range from 2.95% APY for 3 months to 4.88% APY for 5 years. Higher CD rates are available to Heritage Club members. I've been told that rates typcially are updated on Tuesdays. Below is a more complete list of the CD rates as listed in the credit union's rate table (pdf) as of 2/11/2009.

Regular and IRA Certificate Rates as of 2/11/2009:

TERM APY APY APY
$2.5K MIN $25K MIN $100K MIN
3 months 2.85% 2.95% 3.05%
6 months 2.84% 2.94% 3.04%
1 year 3.03% 3.09% 3.19%
2 years 3.65% 3.70% 3.80%
3 years 4.16% 4.22% 4.32%
4 years 4.16% 4.22% 4.32%
5 years 4.83% 4.88% 4.98%

They also continue to offer two competitive Add-On CDs: 3.75% APY for 2 years and 3.25% APY for 1 year. Minimum deposit is $500. According to the Add-on Certificate page, you have the "ability to add on deposits over the term with no minimum amounts or limits to the number of deposits."

Refer to my previous Northwest FCU post for more details about qualifying and applying for membership. According to this Northwest FCU's Organizations Page, members of the American Consumer Council are eligible to join the credit union.

Northwest FCU branches are located in the Virginia cities of Chantilly, Herndon and Vienna.

The credit union has some strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 9/30/08 financial datal. he credit union is federally insured by the NCUA (Charter # 5500). It's a large credit union with $1.6 billion in assets and 96,306 members.

  Tags: Virginia, CD rates, Northwest Federal Credit Union

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Comments
Comment #1 by goldsheet (Bob) (anonymous) posted on
goldsheet (Bob)
Putting $500 into an add-on CD is a great way to lock in a place to get 3.75% for two years. I have a 6% Cd coming due in May, and it is nice to know I have the ability to get 3.75% even if rates continue to drop in the next few months.

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Comment #2 by Anonymous posted on
Anonymous
Bob

Agreed. This is similar to the ACU deal some months back. There is advantage to be had, along the lines you outline.

My only concern is the term. Rely on something being done in time for the fall 2010 election. So this term is a touch long. I'm still in, though.

As for Nancy, I have seldom seen a more compelling situation. Where do I send my contribution?

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Comment #3 by Anonymous posted on
Anonymous
Can anyone explain the early withdrawal penalty? The csr said that it was the lesser of 180 days or all of the dividends since the cd was open. She couldn't be more specific than that.

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Comment #4 by Anonymous posted on
Anonymous
I tried to open a new account & CD over the phone. I was told that I had to use the online application and the wait for the money to ACH into the share account before I could open the CD. Chances are their rate will have dropped by then. I guess they are getting a lot of people trying to open these CD's !!!!

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Comment #5 by goldsheet (Bob) (anonymous) posted on
goldsheet (Bob)
Sent my share deposit by wire (NWFCU does not charge for incoming, and WAMU has free outgoing, so it was free)
About 3 hours later I saw funds in my share account and called NWFCU, who opened the CD over the phone for me.

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Comment #6 by Anonymous posted on
Anonymous
I too just opened an add-on CD today. Couldn't be easier. Great customer service! I opened over the phone & wired the funds as my bank has free wires.
Tomorrow I will phone them to transfer the funds into the CD from my new share account.
I only put in the minimum for now as I have the ACU 5% add-on and plan to maximize that first as various CD's come due this year. Then I will use this one as a back-up if rates remain low.
Thanks Banking Guy, you are terrific!!

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Comment #7 by Anonymous posted on
Anonymous
I called today and was told I could open my new account and a CD both at the same time by downloading and filling out both applications and mailing them in along with a single check. Minimum $5 for the share savings account and $$$$ to fund the CD.

Applications and check are on their way.

1
Comment #8 by Anonymous posted on
Anonymous
great customer service at the call center, plus they have "share credit unions" all around the country (easy to fund the cd, locally). They will be changing rates this coming Wednesday, because of monday being a holiday.

1
Comment #9 by Anonymous posted on
Anonymous
Do they do a hard credit pull when opening a new account? The online form on the join link states verification is done against equifax (after entering personal info but before confirmation).

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Comment #10 by H (anonymous) posted on
H
hard pull= yes

1
Comment #11 by HomoSapiens (anonymous) posted on
HomoSapiens
Am I sick about their application. Tried on Feb 13 online, the site went totally down, for hours. Rep on the phone says -- no applications by phone. Spent >3 hrs today; ecstatic about their optimistic "10 minutes to submit". Application just dies in the middle, "please try again". What am I expected to try after submitting all personal info, credit check and security questions? How do I fund that POS? I hope they saved enough on servers to ensure their prosperity in current difficult times.

1
Comment #12 by HomoSapiens (anonymous) posted on
HomoSapiens
Timed out again. Curious how many times they pulled my credit report.
Did anyone try to fund with a credit card (during application, there is such an option)? Is it posted as a purchase or cash advance? Was about to try Chase Freedom, to which charges from Citibank and Bank of America posted as purchases.

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Comment #13 by Anonymous posted on
Anonymous
"Am I sick about their application. Tried on Feb 13 online, the site went totally down, for hours."

If it's any consolation, I'm a member and had a hard time getting to my account info on the 13th, during business hours. When I got to a rep on the phone, I was told their servers were stressed with an unusually high volume of traffic. No problems when I tried that evening.

While applying online, you should have the option of opening a CD and funding it at the same time by ACH. I found that option very quick and easy.

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Comment #14 by Anonymous posted on
Anonymous
Avoid Northwest Federal Credit Union. I followed all their instructions, I fedexed a check to them. Yesterday Barbara at NWFCU told me my account was opened. This morning Kelly called me and told me my account was not opened, but they could open it today at the new lower rate. Avoid NWFCU

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Comment #15 by Anonymous posted on
Anonymous
New rate sheet today. No rate reductions on the add-on CDs: still 3.25% APY on 1 year, 3.75% on 2 years. With rate reductions on regular CDs -- 2.69% APY now highest yield on 1 year, 2.85% APY highest on 2 years, both requiring $100K deposit -- the add-ons are no-brainers.

1
Comment #16 by Anonymous posted on
Anonymous
re earlier comments:

I just called the credit union and asked whether they do a hard pull for opening up a share savings followed by a CD, and the rep said they do not--that they only do hards when requesting a loan.

1
Comment #17 by Anonymous posted on
Anonymous
The Add-on CD rates at NWFCU has dropped effective today (3/3/09).

Youth Add-On Certificate
Term: 1 Year
Rate: 2.42%
APY* 2.44%

1 Year Add-On Certificate
Term: 1 Year
Rate: 2.42%
APY* 2.44%

2 Year Add-On Certificate
Term: 1 Year
Rate: 2.69%
APY* 2.72%

1