Dedicated to Deposits: Deals, Data, and Discussion

4.00% 50-Month CD at NASA Federal Credit Union - Easy Membership

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NASA Federal Credit Union
NASA Federal Credit Union introduced a July certificate special with a very competitive long-term certificate. It has a rate of 4.00% APY and a term of 50 months. The shorter term specials are not quite as competitive: 2.00% APY 18-months and 2.50% APY 30-months. Minimum deposit is $10,000. The same rates apply to IRA certificates (Traditional, Roth and SEP). These rates are listed in the certificate specials page as of 7/01/09.

Update 7/16/09: Readers have noted the following CD detail listed on page 23 of NASA FCU's Member Services Agreement (pdf):
This rate will not change during the term of your certificate unless the Credit Union notifies you at least 30 calendar days prior to any rate decrease.

So technically, these are callable CDs. I've sent an email to confirm this and to see if they have ever reduced rates of existing certificates in the past. Update 7/26/09: Here's an excerpt of the email I received from NASA FCU:
This notification does permit NASA Federal to adjust the rate on a fixed term provided notification is provided to the account holder with 30 days notice. To my knowledge, in the 60 year history of NASA Federal we have not applied this policy.

In addition to many select employee groups, the credit union's field of membership includes several associations in which anyone can join. A reader in my previous post noted that they've added a new association (American Consumer Council). This is free to join, and you can join at this credit union page. A $5 minimum balance to your savings account is required for credit union membership. Readers have mentioned in this July 2007 post that the online application requires a minimum $25 deposit to fund electronically.

Commenters in past NASA Federal posts have mentioned that NASA Federal has done hard credit pulls via Equifax (which will slightly ding your credit score) during account opening.

Branches are located in Maryland, Washington, DC and Virginia.

NASA Federal continues to have a solid rating for safety and soundness at BauerFinancial: 5 stars (superior). However, at Bankrate.com the rating went down from 4 stars (sound) based on 9/30/08 data to 3 stars (performing) based on 12/31/08 data. The credit union is federally insured by the NCUA (Charter # 6328).

Other High Certificate of Deposit Rates
  Tags: NASA Federal Credit Union, Virginia, Maryland, CD rates

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Comments
12 comments.
Comment #1 by Christina (anonymous) posted on
Christina
Can you transfer money from a NASA checking account to an account at another bank, do you know? Via ACH?

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Comment #2 by Anonymous posted on
Anonymous
You can ACH to/from your share (basic savings) account. I've never looked at their checking account. Be aware the limit is $10,000 per day in or out.

Be sure to call for instructions to get CDs. Sometimes you must open them online with $$ from your share account; sometimes special CDs cannot be opened online.

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Comment #3 by Anonymous posted on
Anonymous
It is very easy to join. I joined yesterday and I dont have eligibility to join and I was going to ask to join via consumer council but they never asked how was I eligible. I opened it in person at a branch

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Comment #4 by Anonymous posted on
Anonymous
Have to mail a notarized copy of your driver's license to open a new account.

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Comment #5 by Anonymous posted on
Anonymous
When you join online they have you check off that you have read their rules and regulations. I read the part that applies to cd's and it says you will get the cd rate in effect the day you open the cd. However, it also says that the credit union reserves the right to change the cd interest rate at any time with 30 days notice. I called the cu about this and the rep said yes they do reserve that right but she in not aware of it actually being used

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Comment #6 by Anonymous posted on
Anonymous
Are you saying that NASA reserves the unilateral right to lower the rate on your long-term CD, and then buries that critical fact in the fine print? I've bought a lot of CDs and I've never heard of such a thing. Not nice!

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Comment #7 by Anonymous posted on
Anonymous
The pdf notice about reduction of rates is surely unique. But let's look at the brigt side as well...and the potential dark side.

A 'callable' CD normally means, the bank has the right , witch notice to terminate the cd and pay it out.

But, reading the pdf, the term callable isn't used, and one might conclude that the text STATES (even while it may not be what was meant), that the CU can chnage rates with a 30 day notice...it doesn't say that the CD is terminated, and there in lies a possible issue:

AS I read this, the CU might think it has the right to say 1 year into a 4% 50 month cd, lower the rate to say 1.00%, but force the cd to remain in force...thus forcing the customer to be "stuck" with a 50 month cd paying 1%!

However, while not a lawyer, checing off a "I read the terms" of an online PDF may not be leagallly binding! In fact I have one of these CDs and I did NOT apply online! I printed the application form after speaking to a CSR, filled in the application, signed it and mailed it. I have the actual CD form for my account and no such mention is shown on this legal paperwork!

https://eservices.nasafcu.com/memberapp/FI/Info.aspx?CurrentTask=dd0111af-8d79-4fab-bef5-db05b20bf36c

If you read THIS webpage, you'll see that you are only agreeing to the terms of THIS page...

But I rather phoned, then printed the membership form here:

http://www.nasafcu.com/pdfs/118L2LinkTo.pdf

which I completed, then included a check and letter explaining which CD I wanted to open.

So, I feel that I have never been informed on any such terms...amd will now log this webpages and liekly will inform the FCU that I have now heard to this implied right, and that I have never been informed!

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Comment #8 by Anonymous posted on
Anonymous
How is the 50-Month CD deal working out for those of you that opted for it? Any surprises?

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Comment #9 by Anonymous posted on
Anonymous
Another strange thing is that their website states the 4 percent rate is guaranteed. It would seem false advertising to then add a statement in fine print that the rate can change anytime. This should be reported to the FDIC for their thoughts.

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Comment #10 by Anonymous posted on
Anonymous
Maybe the better way to describe this CD is a variable-rate CD?

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Comment #11 by Anonymous posted on
Anonymous
"How is the 50-Month CD deal working out for those of you that opted for it? Any surprises?"

I applied for the 50-month CD online July 5, 2009. I received a follow-up call and email on July 10asking for futher identity verification by faxing a copy of my DL which I did. I have been chasing them on the phone ever since, CD still not opened. My guess is they are being bombarded with applications and not able/willing to handle them all. Maybe they are stalling until the end of month when they will drop the rate..

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Comment #12 by Anonymous posted on
Anonymous
Joined ACC association and opened CU account online two days ago, faxed notarized scan of DL, funded it through local CU service center yesterday, then called to move funds into a CD. Very professional phone staff.
CSR confirmed that 50-month CD special ends at COB on July 31st.

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