University Federal Credit Union continues to offer competitive long-term CDs and IRA CDs. The best CD rates are available for Web Certificates in which you open the CDs online. Minimum deposit is $2,500. The following are some of the best rates listed in the credit union's certificate rates page as of 11/14/2010:
- 2.80% APY 5-year CD & IRA CD
- 2.40% APY 4-year CD & IRA CD
- 2.18% APY 3-year CD & IRA CD
As a comparison to the internet banks, the best 5-year CD rate is 2.70% APY and the best 3-year CD rate is 2.25% APY. Both are at iGObanking.com as of 11/14/2010. For credit unions with easy membership, the best 5-year CD rate is 3.03% APY at Melrose Credit Union as of 11/14/2010.
According to the account disclosure, the early withdrawal penalty for terms over 12 months is up to 6 months of interest. If the early withdrawal penalty is important to you, my recent post on the potential risks of long-term CDs should be considered.
Early Saver Certificates
Another good deal at UFCU is for kids. It's a 12-month variable rate CD which currently has a 3.00% APY for balances up to $20K. Additional deposits can be made at any time and in any amount. When the member turns 18 the certificate will renew into the share savings account. Even though it's a variable rate, this 3.00% APY has held for quite a while. This CD is listed in the credit union's certificate rates page as of 11/14/2010.
There's a long list of employers, schools and associations in the credit union's membership page in which you can qualify for credit union membership. It also states in this page:
If you're unable to qualify for membership based on the above list, you can join the University of Texas Longhorn Foundation
The page has a link to the foundation's application. There's a one-time donation of $20. This is a good year for a donation to the Longhorns. They need all the help they can get ;-)
The credit union has an online membership application that allows for electronic funding. A $5 minimum balance in the savings account is required for membership. Also, there's a one-time $1 fee.
Branches are located in the Texas cities of Austin, Round Rock and Galveston.
The credit union has an overall health score at DepositAccounts.com of 4 out of 5 with a Texas Ratio of 7.22% (excellent) based on June 2010 data. It's a sizable credit union with $1.21 billion in assets. Please see our financial overview of University Federal Credit Union) for more details. The credit union is federally insured by the NCUA (Charter # 1367).
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.