Communication Federal Credit Union Has Two CD Specials With Top Rates

Now through June 30, 2023, Oklahoma-based Communication Federal Credit Union (CFCU) is offering two Certificate Specials (13-month and 26-month) that both have a rate-leading 5.60% APY. The Certificate Specials can be opened with a minimum $5k deposit, with no stated balance cap. New money is required, which is defined as funds coming from another financial institution.

The Truth-in-Savings disclosure is no longer available on the CFCU website, but CSR confirmed the following Early Withdrawal Penalty is still in effect:

If funds are withdrawn prior to maturity, you will forfeit an amount equal to half of the interest on the full term of the certificate. If the account has not yet earned enough interest or if the interest has already been paid, the penalty will be deducted from the principal. The penalty will be computed using the interest rate in effect at the time of early withdrawal.

Availability

Headquartered in Oklahoma City, Communication Federal Credit Union field of membership (FOM) has an easy membership requirement for all Oklahoma and Kansas residents through membership in OEJ/NREF, which are two “citizen’s coalitions that work together to promote a better understanding of our resources and to promote full-employment in the energy sector.”

Joining OEJ/NREF can be done either in-branch or during the online application process. The one-time $5 OEJ/NREF membership fee will paid by CFCU.

Individuals who live, work, or worship in the Oklahoma counties of Carter or Pottawatomie, or in the Oklahoma city of Broken Arrow are also eligible to join.

Employees/retirees of more than 500 Business Partners also qualify for membership.

Immediate family members (spouse, child, sibling, parent, grandparent or grandchild) of a current CFCU member are also welcome to apply.

Account Opening

Joining CFCU and/or opening a Share Certificate Special can be done online or at any of 21 Oklahoma branches, located in Ada, Ardmore, Bixby, Broken Arrow, Edmond (2), Enid, Lawton (2), Muskogee, Norman, Oklahoma City (4), Owasso, Shawnee, Tulsa (2), and Yukon, or at either Topeka, Kansas branch locations.

Opening a Share Savings account with a minimum $5 deposit is required to establish an CFCU membership.

Funding and Other Details

The following information is from the landing page and a conversation with CSR.

• Funding* – ACH, cash, cashier’s check, or shared branch transaction.
• CO-OP Shared Branch Participate – Yes.
• Ownership – Individual, joint, or trust.
• Dividends – Compounded/credited monthly; can be distributed by monthly check or internal transfer.
• Maturing Funds – Cashier’s check to the address on file or internal transfer.
• Grace Period – 10 calendar days before automatic renewal (13-month will renew as a 12-month CD and the 26-month will renew as a 24-month CD.
• Beneficiaries – Unlimited, with equal shares; Social Security numbers are required.
• Credit Check – Hard pull when joining.

*CFCU has made funding a Certificate Special (CS) unnecessarily difficult. In the past, the easiest way to fund a new CD was an internal transfer. CSR previously suggested using the CO-OP Shared Branch network to deposit funds into a Share Savings account, and then transferring the funds into a CD. Simple!

The problem with the CS is the new money requirement. According to CSR, opening and funding a CS must be done simultaneously, which is easy if you’re opening a CS in-branch and you have cash or a cashier’s check in hand. The problem arises if you want to open a CS online: if you have transferred new money into your Share Savings account in anticipation of opening a CS, the online application will not recognize those funds as being new money, and you will not get the stated APY. CSR suggested that you could submit an online application without funding, have it rejected for not including funding, then contact CFCU explaining you will be transferring new funds, and then go from there. Not simple.

This makes no sense to me. I was going to do a mild rant about “new money,” but to quote SNL’s Coffee Talk skits, “Talk amongst yourselves.”

Credit Union Overview

Communication Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.34% (excellent) based on March 31, 2023 data. In the past year, CFCU has increased its total non-brokered deposits by $98.45 million, resulting in an excellent annual growth rate of 6.34%. Please refer to our financial overview of Communication Federal Credit Union (NCUA Charter # 3454) for more details.

Founded in 1939 as the Pioneer Bell Credit Union, the original FOM was exclusive to employees of Southwestern Bell Telephone. The group of Business Partners grew over the years (including AT&T, Goodyear Tire, Oklahoma Gas & Electric, to name a few) leading to the Communication Federal Credit Union re-brand in 1982. Communication Federal Credit Union is currently the third largest credit union headquartered in Oklahoma, with more than 117,000 members and assets of nearly $2 billion.

How the 13-Month Share Certificate Special Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $10k or less, no bank or credit union has a higher rate than currently offered on the Communication Federal Credit Union 13-month Share Certificate Special. The following table compares the 13-month Share Certificate Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.

How the 26-Month Share Certificate Special Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $10k or less, no bank or credit union has a higher rate than currently offered on the Communication Federal Credit Union 26-month Share Certificate Special. The following table compares the 26-month Share Certificate Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.

The above information and rates are accurate as of 6/27/2023.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.