Top 6-Year CD Rate at INOVA FCU in IN, CA & NC - Easy Membership

The 5-year CD rate has fallen since my last post on INOVA Federal Credit Union. However, the credit union is still listing the same competitive rate for the 6-year CD of 3.05% APY. The 5-year CD rate is no longer competitive with a 2.00% APY. The shorter terms are even less competitive. The rates are 10 basis points higher for IRA CDs. Minimum deposit is $200. In my last post, a reader commented that the early withdrawal penalty is 180 days of interest for CDs with terms over a year. These rates are listed on the credit union's certificates page as of 1/30/2011.

This 6-year CD rate is better than PenFed's 3.00% APY 7-year CD which is the best 7-year CD that's nationally available.

The credit union also offers a reward checking account called Ovation Checking that is still paying 4.00% APY on balances up to $20K (rate is listed in the online application). My first report on this account was in April 2010.

Membership and Online Application

Credit union membership is primarily based on employment or membership in one of many organizations. Refer to the credit union's become-a-member page for more details. On the front page there's a "Join INOVA" link at the top left of the page. This link takes you to an online application provided by loanspq.com. One of the options for eligibility listed in this application includes:

You may elect to join one of the approved not for profit organizations such as Cass County Conservation Club or the Elkhart River Restoration Association.

The online application allows you to select any of the CDs. You are also required to open a savings account with a minimum balance of $5.

Credit Union Overview

Branches are located in the Indiana cities of Elkhart, Michigan City, Mishawaka and Granger. Other branches are located in Berkeley, California; and Clayton, North Carolina. It's also part of the Credit Union Service Center which allows you to perform basic transactions at branches of other credit unions around the nation.

The reason the credit union has branches scattered across the country is due to it being originally chartered to serve the employees of Miles Laboratories which had facilities in these cities. The credit union used to have branches in other states, but it appears those have been closed.

The credit union has an overall health score at DepositAccounts.com of 3 out of 5 with a Texas Ratio of 28.34% (above average) based on September 2010 data. Please refer to our financial overview of INOVA Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 4968).

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:

• CD rates
• IRA CD rates