Island Federal Credit Union just increased the rate of its 11-month CD special. It now has the very competitive rate of 2.00% APY. Minimum deposit is $1,000. When I last reported on this deal in March, this special required a checking account with some additional hoops to jump through. However, I just confirmed with the credit union that there are no additional requirements with this new 11-month CD special.
The credit union also has other good rates, but I wouldn’t consider them as hot deals. There’s one other special: a 2.05% APY 30-month CD. The standard long-term CD rates are also competitive: 2.74% APY 5-year CD and a 2.37% APY 4-year CD. These are also available as IRAs. These rates are listed in the credit union’s certificates rates sheet as of 5/19/2011.
Membership is open to those who live, work, worship or attend school in Suffolk County or Nassau County (with the exception of the townships of East Hampton, Southampton or Shelter Island). Please refer to the credit union's Membership page for more details. Membership requires a minimum balance of $5 the regular savings account.
Island Federal Credit Union branches are located in Brooklyn, Seldon, Hauppauge and Hicksville, New York.
Island FCU has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 3.11% (excellent) based on December 2010 data. Please refer to the financial overview of Island Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 10023).
How It Compares to the Best CD Rates
The best 12-month CD rate that’s available nationwide is 1.75% APY at Connexus Credit Union, but this requires an active checking account. Without the checking requirement, the best 1-year CD rate is 1.41% APY at Melrose Credit Union.
This 11-month CD even compares favorably to Ally Bank’s 5-year CD that has the mild early withdrawal penalty of 60 days of interest. That CD currently has a 2.39% APY, and if it’s closed after 11 months, the effective yield would be about 1.95% (see my Ally Bank CD review).
To search for the best nationwide rates and the best rates in your state, please refer to the following sections of DepositAccounts.com: