Finding 3 percent CDs is very difficult these days. It's even hard to find these CDs with terms of 7 and 10 years. That's why I was surprised when I noticed the new 30-month 3.00% APY CD from NavyArmy Federal Credit Union. The credit union's CDs had been limited to terms of 2 years and shorter. These shorter-term CDs are also competitive. The jumbo CD rates are 2.00% APY for 2 years, 1.60% APY for 1 year and 1.15% APY for 6 months. These have a minimum deposit of $100,000. The non-jumbo rates are 5 to 15 basis points lower. The 30-month CD doesn't have a Jumbo version. The yield is 3.00% with a minimum deposit of $1,000. These rates are listed in the credit union's rates page as of 12/08/2011.
Top CD rates aren't the only perk with membership in NavyArmy FCU. It also has a very competitive reward checking account that pays 3.51% APY on balances up to $25K (see my review).
Unfortunately, membership is limited. Because of the name you might think it's limited to the Navy and Army personnel. However, its field of membership is community based. Anyone who lives, works, worships or attends school in any of the following Southeast Texas counties are eligible to join: Aransas, Bee, Jim Wells, Kleberg, Nueces and San Patricio. Please refer to the credit union's membership page for the full details.
With these credit unions I wonder how strict they are in judging who meets the worship requirement. If someone vacations yearly near the credit union and worships at a local church, would that meet the membership requirement? I would guess it will depend on the credit union's management. If you have experience in joining credit unions this way, please leave a comment.
NavyArmy Federal Credit Union branches are located in the Southeast Texas cities of Corpus Christi, Beeville, Kingsville, Portland and Rockport.
The credit union has recently changed from a federal charter to a state charter. This was approved by members last summer, and as of October, it's listed as a state-charter Texas credit union at the Texas Credit Union Department. The credit union claims the intent of this change is to expand into other geographic areas. That's good news. The only downside is that the credit union is now allowed to change to private deposit insurance. There's no indication they plan to do this.
It's a sizable credit union with $1.12 billion in deposits. The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 3.03% (excellent) based on September 2011 data. Please refer to our financial overview of NavyArmy Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 68615).
How These CD Rates Compare
These rates are way above the CD rates that are nationally available. For example, the highest 36-month CD rate is 1.91% APY and the highest 1-year CD rate is 1.15% APY at Melrose Credit Union. These rates are accurate as of 12/08/2011.
Searching for the Best CD Rates
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.