Dedicated to Deposits: Deals, Data, and Discussion

3.00% No-Penalty 60-Month IRA CD at Agriculture FCU - Easy Membership

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Agriculture Federal Credit Union
Agriculture FCU is again offering a special No-Penalty Certificate. However, unlike last year's no penalty CDs, this one is only for an IRA certificate. The special has a 60-month term with a 3.00% APY. This is a little low for a 5-year term, but since it's a no-penalty CD, that shouldn't be an issue. Minimum deposit is $1,000. This special is listed in AFCU's IRA page as of 1/10/2010 and is subject to change at any time.

I don't see many details of this IRA CD at AFCU's website. Last year when AFCU was offering a regular CD with the no-penalty feature, I emailed them about how the no-penalty feature worked. Here is an excerpt of their reply:
you can withdraw the entire amount and all the dividends will be included with the withdrawal up to the date the withdrawal was made. Yes you can request to have this done by phone , email, secure email or by mail. No, there is no limit to the number of certificates that you wish to have opened.

Making a withdrawal from an IRA CD could be a little more complicated since you don't want to be penalized by the IRS. I assume one could make an early withdrawal from this AFCU IRA CD and have the money moved into AFCU's IRA savings account or another IRA CD without any complications. Make sure to confirm this with AFCU.

Easy Membership

AFCU's Field of membership includes members of CityDance Ensemble. CityDance has open membership to anyone that pays membership dues of $20.00. This membership can be done at the same time that you apply for credit union membership. They have an online membership application in which you can join CityDance for $20 and join the credit union for a $5 initial deposit to the Primary Share account. You do not have to renew your CityDance membership to maintain membership at the credit union.

The FOM also includes those who live, work or worship in Washington DC plus other group affiliations. See site for the full details.

I joined AFCU and opened a CD in November 2006. For more information on AFCU and the CDs, please refer to my November 2006 AFCU post. Back in 2006 and 2007, AFCU had many great CD specials with rates of 6% or higher. There haven't been too many great CD specials since then, but their CD rates have remained fairly competitive.

Branches are located in Washington DC, Riverdale, Maryland, and Alexandria, Virginia. AFCU is also part of National Shared Branching network in which you can use local credit unions to access your account and conduct many transactions.

AFCU has some strong financial ratings for soundness: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 16400).

Thanks to the reader who emailed me info on this new special.

Other Competitive IRA CD Rates

Last week I posted on another credit union offering a 3% IRA CD. However, that CD only has a 14-month term without a no-penalty feature. I would prefer the longer term if there's a no-penalty feature. If rates stay low, you can just keep the long-term CD. For other IRA CDs, please refer to the following:

  Tags: Agriculture Federal Credit Union, CD rates, IRA rates

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