We are starting to see some increases in long-term CD rates. The latest rate hike occurred at Apple Federal Credit Union which increased its 7-year and 10-year CD rates. Its 10-year CD rate is now 3.50% APY (was 3.25%), and its 7-year CD rate is now 3.00% APY (was 2.60%). Minimum deposit is $500, and these are also available as an IRA CD. The rates are listed in the credit union's rate table as of 2/18/2011.
One major downside with these long-term CDs is a very harsh early withdrawal penalty. According to the Apple's FAQ the penalty for terms greater than 60 months is:
the lesser of dividends earned since issuance or renewal or 1,095 days dividend.
That's 3 years of interest. As a comparison, PenFed's early withdrawal penalty for terms over 5 years is one year of interest. Like PenFed, they don't eat into your principal. So if the early withdrawal is at year one, you'll just lose one year of interest.
There's just over one week left on Apple's special 14-month IRA CD. I reviewed this special in my January Apple Federal Credit Union special IRA post.
Credit union membership is open to members of Northern Virginia Athletic Directors, Administrators, and Coaches Association (NVADACA). NVADACA is listed in the credit union's field of membership list. Membership into NVADACA is open to anyone. There is a $20 membership fee. For more ways to be eligible to join Apple FCU, please refer to the credit union's Membership Page. Membership requires a minimum balance of $5 in the regular savings account.
Apple FCU is located in Fairfax, Virginia and has additional branches in Centreville, Falls Church, Herndon, Manassas, Alexandria, Springfield, Stafford, Winchester, Woodbridge and Washington, DC.
Apple FCU is a sizable credit union with $1.29 billion in assets. It has an overall health score at DepositAccounts.com of 4 out of 5 with a Texas Ratio of 6.40% (excellent) based on September 2010 data. Please refer to our financial overview of Apple Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 11307). Searching for the Best CD Rates
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