One downside is a large early withdrawal penalty. According to the truth in savings disclosure, the EWP for terms of 30 months and longer is up to 360 days of interest.
I'm pleasantly surprised to see the credit union is still offering these top rates. In my January post I wrote about PFFCU's explanation of what drives their deposit rates. They said their rates were dependent on their conservative investment portfolio returns since they had more deposits than loans. The current returns of those investments were under 1%. They have been able to maintain the high rates due to past investments that are still earning 4%.
It should be noted that Treasury yields have fallen since January. So it seems likely that PFFCU CD rates will trend down as their investments mature. The only other way for them to keep these CD rates will be if loan demand grows.
The one nice feature of PFFCU is their field of membership. They still list Weavers Way Cooperative Association in their members group. Unfortunately, they have an additional limitation for Weaver Way members. They must also be Pennsylvania residents. At least this allows anyone in PA to join. Weavers Way Cooperative has instructions on membership on this webpage. It appears you can join for $30. Once you are a credit union member, you are under no obligation to retain membership in that association.
For more details about PFFCU membership, please refer to the PFFCU membership eligibility page.
Police and Fire Federal Credit Union branches are located in Philadelphia and its suburbs.
It's a large credit union with $3.9 billion in assets. It has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 1.84% (excellent) based on March 2011 data. Please refer to our financial overview of Police and Fire Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 2551).
Searching for the Best CD and IRA CD Rates
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