Digital Credit Union recently increased the rates on its Jumbo certificates. Even though the credit union calls these Jumbo certificates, they only require a $25K minimum deposit. For the standard CDs, the best rates include a 3.01% APY 60-month CD, a 1.51% APY 12-month CD and a 1.35% APY 6-month CD. One nice perk for terms of 12 months and under is an add-on feature that allows you to make unlimited additional deposits of at least $100 during the term.
The credit union also has a good deal on its Jump-Up Certificate. The best one is the 15-month CD with a 1.55% APY. The 27-month CD is not quite as competitive with a 1.76% APY. If rates go up during the term, you can jump-up to the higher rate, one time, for the rest of the term. These are also jumbo rates.
The above rates are listed in DCU's rates page as of 8/05/2010.
Checking relationship required
One important note about the above rates is that they require a Loyalty Checking Plus relationship. Without Loyalty Checking Plus relationship you'll earn 0.25% less than rates shown above. Please refer to DCU's loyalty checking page for how to qualify for Loyalty Checking Plus.
Other Reasons to Join
The CD rates may not be high enough to make up for the hassles of Loyalty Checking Plus, but DCU has a few other reasons that can make a DCU relationship worthwhile:
- PC Deposit - This is a remote deposit capture service which allows members to make check deposits by using a home scanner.
- Free FICO Credit Scores - You can receive your Equifax FICO Credit Score once a month for free (see review)
- History of competitive CD specials - DCU has a history of offering very competitive CD specials with terms from 5 to 20 months. I first mentioned DCU in 2005 when they were offering a 5% 16-month CD (the good old days).
Credit Union Membership
Anyone can join DCU via membership in an association. Refer to this credit union page for the list of associations. The least expensive membership is $10 for joining Reach Out for Schools. You can be immediately eligible to join DCU if you live, work, worship or attend school in parts of Georgia and Massachusetts. Refer to the Join DCU page for the full details.
In the instructions for joining DCU there are links to an online membership application and a PDF application. A reader who commented on his experience with the online application in my DCU post from 2008 provided the instructions he received from DCU after he applied:
In order to continue processing your application, please mail a $5 check or money order payable to DCU to fund your membership.
If you have joined through a sponsoring organization, then please make sure to also include funds to cover that organization's membership fee.
Also, please mail a copy of your driver's license or passport. If sending a passport, or if your license does not show your current address, please also send either a utility bill in your name (electric, gas, home telephone) or a copy of your apartment lease agreement. If you have listed a Joint Owner on your application, that person must also send the required ID and address proof.
Please note, we do not accept cell phone bills, bank statements, credit card statements or pay statements as address verification.
Make sure to check with the credit union for the latest instructions. One downside to joining is a potential hard credit inquiry (which can temporarily ding your credit score). Here's what a commenter mentioned in my August 2008 DCU post:
I also have been a five-year DCU member, holding several jumbo CDs with them. Yet, when I added checking to my account this past January, they ran a check on me through Equifax!
Branches are located throughout Massachusetts, in Hudson, Merrimack and Nashua in New Hampshire, in Colorado Springs, Colorado and in Alpharetta, Georgia.
The credit union's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial and an overall health score of 3 out of 5 at DepositAccounts.com (see our Digital Credit Union review). Both ratings are based on March 2010 data. Note, Bankrate doesn't currently have a rating for DCU.
DCU is federally insured by the NCUA (Charter # 23521). It's a large credit union with $3.9 billion in assets.