It has been over a year since I last reviewed Andrews Federal Credit Union and its share certificates. It continues to offer competitive certificates that can be opened by people in any state. Its best deals are long-term CDs and IRA CDs. These include a 2.30% APY 5-year CD, 2.05% APY 4-year CD and a 1.55% APY 3-year CD. Minimum deposit is $1,000. These rates are listed in the credit union's rates page as of 1/13/2012.
The credit union's Truth in Savings disclosure provides the CD details including the early withdrawal penalties. The penalty for terms of 2-years and longer is 180 days of interest. Unfortunately, the disclosure gives the credit union the right to refuse an early withdrawal request: "You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal."
As you might expect, membership is open to personnel of Andrews Air Force Base. However, there's an association that you can join if you're not connected with the Air Force Base or other select employer groups. Here's what is stated in the credit union's membership page
Not eligible for Andrews Federal membership through one of the groups listed above? You can become eligible through our partnership with the American Consumer Council (ACC). When you join the ACC, you are eligible for membership at Andrews Federal, too. Membership in the ACC is free. For more information, please call 800.487.5500, option 3.
If you click on the "Open an Account" link on this membership page, you are taken to an Andera.com application. On the second page, if you click on "Association", you can select the option that states "I am interested in joining ACC so I will be eligible for membership at Andrews Federal Credit Union. Click here to join!" The "Click here" link takes you to the page where you can sign up for ACC.
Credit Union Overview
Andrews Federal Credit Union branches are located in Maryland, Washington DC and New Jersey. It has branches in the military bases in Germany, The Netherlands and Belgium. It's also part of the shared branch network CU Service Centers. This network allows you to perform many banking transactions at other credit unions that are part of the network.
The credit union has an overall health score of 5 stars (out of 5) at DepositAccounts.com with a Texas Ratio of 3.88% (excellent) based on September 2011 data. Please refer to our financial overview of Andrews Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 5754).
How These CD Rates Compare
Andrews FCU has some similarities with PenFed. Like PenFed it's main membership focus is the military, but they provide a way for anyone to join online. Also like PenFed, it has very competitive long-term CD rates. Andrews FCU currently has an advantage with slightly higher CD rates for terms of 3 to 5 years. Another plus over PenFed is that the 5-year early withdrawal penalty is only 180 days of interest. PenFed recently increased this penalty to 365 days of interest (see my PenFed CD review).
If you're just looking for the best 5-year CD rate, Melrose Credit Union still has the top spot with a 2.68% APY. These rates are accurate as of 1/13/2012.
Searching for the Best CD and IRA CD Rates
To search for the best nationwide rates and the best rates in your state, please refer to the following sections of DepositAccounts.com: