Dedicated to Deposits: Deals, Data, and Discussion

Competitive 2- and 5-Year CDs at Northwest FCU - Available Nationwide

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Northwest Federal Credit Union
Northwest Federal Credit Union continues to offer some competitive CD rates. Rates have actually went up since my November post. The most competitive is currently the 5-year CD with a 3.65% APY for a minimum balance of $25,000. Lower rates are available for smaller balances, and a 3.75% APY is available for a $100,000 minimum. In addition, higher rates (up 0.25%) are available to Premier Checking members and Heritage Club members. These rates are based on the credit union's rate sheet (pdf) as of 12/20/2009. Note, rates typically are changed on Tuesdays.

Another noteworthy CD is the credit union's 2-year Add-On CD which has a 2.39% APY as of 12/20/2009. 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." There's also a 1-year Add-On CD, but the rate is not quite as competitive, only 1.53% APY as of 12/20/2009. These Add-On CDs have a $500 minimum deposit, and the bonus rates don't apply.

These Add-On CDs can be very useful to hedge against the risk that this low-interest rate environment will drag on. When future CDs mature, you can fall back on the Add-On CD if rates are not higher.

Additional Credit Union and CD Details

Last month I described a useful IRA CD feature at Northwest for those 59½ and over. I have more details about Northwest FCU and its CDs in my September Northwest FCU review.

Membership

In addition to select employer groups, credit union membership is open to members of the American Consumer Council (ACC). According to the credit union's Who We Serve page:
If you find you are not eligible to join NWFCU via the relationships defined above, we can approve your membership with automatic enrollment in the American Consumer Council, an organization dedicated to consumer education, awareness, and economic growth. This nonprofit advocacy group was established in 1987 to ensure and protect consumers. There is no cost for you to join, nor additional paperwork. Simply select "I work for a member company or an organization" then choose "ACC" from the list of eligibility options on our membership form.

Membership requires a minimum deposit of $5 into your share savings account.

Locations

NWFCU's branches are located in the Virginia cities of Manassas, Chantilly, Herndon and Vienna. You can also use shared branches for making deposits, withdrawals and for other services.

Financial/NCUA Info

The credit union's rating for safety and soundness are strong: 4 stars (sound) at Bankrate.com (based on 6/30/09 data) and 5 stars (superior) at BauerFinancial (based on 9/30/09 data). NWFCU is federally insured by the NCUA (Charter # 5500). It's a large credit union with $1.7 billion in assets and 99,300 members.

Thanks to the reader who noted these latest rates in the comments.

Other Competitive Certificate of Deposit Rates

Related Pages: Virginia, CD rates, Northwest Federal Credit Union, IRA rates

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Comments
2 Comments.
Comment #1 by Anonymous posted on
Anonymous
The 2-year CDs have now dropped a bit as of today.

1
Comment #2 by Anonymous posted on
Anonymous
Unfortunately all of their CD rates have dropped a bit today.

-1