Air Force FCU continues to offer competitive 3-year and 5-year CD rates. The best rates require a $100K minimum deposit and include a 3.00% APY 5-year CD and a 2.40% APY 3-year CD. For the 5-year CD, the rate only goes down by 5 basis points for deposits as small as $2,500. For the 3-year CD, the rates include a 2.35% APY for $25K, 2.30% APY for $12.5K and 2.25% APY for $1K. These rates are listed in the credit union's savings rates page as of 11/02/2010.
As a comparison, the best 5-year CD rate you can find at an internet bank is 2.75% APY for a 5-year CD at Sallie Mae Bank. For a 3-year CD rate, the best is 2.25% APY at iGObanking.com.
The credit union also offers IRA certificates with the same rates as above. The credit union's early withdrawal penalty is a little convoluted:
The early withdrawal penalty will be equal to one half of the dividends that would accrue from the date of the withdrawal to the maturity date applying the contracted rate on the certificate based to the amount withdrawn over and above any dividends credited to the certificate to date of withdrawal.
The credit used to be open to all US Armed Forces. However, it's now limited to those connected to the military who are working in Texas, Oklahoma, Arkansas, Louisiana, or Mississippi. If you click on the credit union's "join us" link and then click on "become a member" link, you can see the full details of the credit union's field of membership.
Last year the NCUA cited Air Force FCU for improper membership. I reviewed NCUA's letter of understanding in this July post.
The membership application is available online. For those who prefer to visit an office, branches are located in San Antonio, Texas. The credit union is also part of the CU Service Centers which allows you to make several banking transactions at shared branch offices around the nation.
The credit union has an overall health score at DepositAccounts.com of 4 out of 5 with a Texas Ratio of 2.72% (excellent) based on June 2010 data. Please refer to our financial overview of Air Force Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 8169).
Searching for the Best CD and IRA CD Rates
To search for the best nationwide rates and the best rates in your state, please refer to the following sections of DepositAccounts.com: