Update 5:40pm 10/04/2011: The 5-year CD APY with a $10K minimum has fallen to 2.25%.
If you missed the 5-year CD deal at US Senate FCU, this might be another chance to lock into a 3% CD. McGraw-Hill Federal Credit Union is listing a 5-year share certificate with a 3.00% APY for a minimum $10,000 deposit. This is listed in the credit union's rates page as of 12:00pm 10/04/2011. I was a little skeptical of this rate since it was so much higher than the lower tier rate that requires a $500 minimum. I just called the credit union at 800-226-6428, and the CSR confirmed that it is correct. I was told the rates typically change once a month, but they can change at anytime. The CSR wasn't clear on the early withdrawal penalty. It appeared to be up to 90 days of interest. I couldn't find a disclosure on the website with this info. If you receive more information from the CSR, please leave a comment.
The credit union also has a good 8-month CD deal. It's called the Solar CD, and it has a 2.00% APY for an 8-month term. Minimum deposit is $1,000 and the maximum is $25,000. This also requires a checking account with direct deposit of at least $500 per month. This is listed in the credit union's Solar CD page as of 10/04/2011.
When I last posted on this credit union, the membership appeared to be limited to certain select employee groups (connected with the McGraw-Hill Company). However, I just noticed on their express application it mentioned the VOICE Foundation. According to the CSR, you can join this foundation with a $25 payment, and that will qualify you for credit union membership. I was told that the best way to join would be to submit this application, and let them contact you for information on what needs to be mailed to join and open the accounts. I don't know how quick and easy this process might be.
The membership process will be quicker if you can visit a branch. McGraw-Hill Federal Credit Union branches are located in New York, NY and in East Windsor, New Jersey. The credit union is also part of the shared branch network which can make it quicker for making deposits and withdrawals.
McGraw-Hill FCU Overview
It's a moderate size credit union with $208 million in deposits and 44 employees. The credit union has solid financial ratings. At DepositAccounts.com it has 5-star rating (out of 5) with a Texas Ratio of 1.17% (excellent) based on June 2011 data. Bankrate gives it 4 stars based on March 2011 data. Please refer to our financial overview of McGraw-Hill Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 861).
How This CD Rate Compares
After this McGraw-Hill FCU deal, the best 5-year CD rate that's nationally available is 2.68% APY at Melrose Credit Union. For banks, the 5-year CD rates are much lower. The highest 5-year bank CD rate that's nationally available is 2.20% APY at First Internet Bank. These rates are accurate as of 10/04/2011.
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.