Dedicated to Deposits: Deals, Data, and Discussion
DETAILSINSTITUTIONAPYMINMAXPRODUCT
State Department Federal Credit Union2.12%$500-60 Month IRA Certificate (Traditional,Roth)
State Department Federal Credit Union2.02%$500-60 Month Certificate
State Department Federal Credit Union1.71%$500-48 Month IRA Certificate (Traditional,Roth)
State Department Federal Credit Union1.61%$500-48 Month Certificate
State Department Federal Credit Union1.36%$100k-45 Month Jumbo Bump Up Certificate
State Department Federal Credit Union1.10%$100k-30 Month Jumbo Bump Up Certificate
State Department Federal Credit Union0.80%$500-17 Month Bump Up Certificate
Accounts mentioned in this post. Rates as of August 22, 2014

Top CD & IRA CD Rates at State Department FCU in VA - Easy Membership

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State Department Federal Credit Union

State Department Federal Credit Union continues to offer some competitive long-term CD and IRA CD rates. The IRA CD rates are 10 basis points higher than the regular CD rates. The two best IRA rates are 2.17% APY for 5 years and 1.86% APY for 4 years. The regular CD rates are 2.07% APY for 5 years and 1.76% APY for 4 years. SDFCU also offers 3 bump-up CDs: 1.51% APY for 45 months, 1.15% APY for 30 months and 0.80% APY for 17 months. These bump-up CDs allow for a 1-time rate bump-up during the term. Also, members can add new money at time of bump-up. These rates are listed at the credit union's rates page as of 6/27/2012.

At the bottom of SDFCU's rate page, the early withdrawal penalties are described. For terms of 1-year and longer, the EWP is up to 180 days of interest on the amount withdrawn. The penalty won't eat into the principal.

Membership

SDFCU is another credit union that has made it easy for anyone to join. If you click the "who can join" link in the Join SDFCU page, it states the following:

If you are not eligible to join through any of the listed groups or affiliations, anyone can join SDFCU through the American Consumer Council (ACC), a nonprofit advocacy group. When opening your SDFCU account you will need to choose ACC on your application, this will automatically enroll you as a member of ACC. There are no hidden fees to join ACC through your membership at SDFCU.

There's also a long list of select employer groups which includes the Department of State.

You can apply using an online application provided by Andera. This can be used to join the credit union and to open and fund the deposit accounts.

State Department Federal Credit Union Overview

State Department Federal Credit Union branches are located in Washington DC and in Alexandria, Virginia.

It's a sizable credit union with $1.42 billion in assets. It has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 4.70% (excellent) based on March 2012 data. Please refer to our financial overview of SDFCU for more details. The credit union is federally insured by the NCUA (Charter # 435).

How These CD Rates Compare

You can get nationally available CD and IRA CD rates that are a little higher at Justice Federal Credit Union and Melrose Credit Union. Justice FCU has Jumbo 5-year and 4-year CD and IRA CD rates of 2.20% APY and 1.85% APY. Melrose Credit Union has 5-year and 4-year CD and IRA CD rates of 2.17% APY and 1.96% APY. These rates are accurate as of 6/27/2012.

Searching for Top CD and IRA 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. For IRA CD rates please refer to the best IRA rates section.


  Tags: State Department Federal Credit Union, CD rates, IRA rates, Virginia

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Comments
15 Comments.
Comment #1 by Anonymous posted on
Anonymous
For now, the 5 yr IRA rate looks fairly appealing. Am wondering though, how it works when a person reaches age 70 and one half and is required to take a minimum distribution annually while the 5 yr CD term is still in effect. Will the institution pay out the minimum distribution amount from the CD and leave the remainder of the CD intact or does the CD have to be cashed out entirely in order to free up the minimum distribution amount? Is there a federal rule that controls this type of situation or does it depend on the policy of each individual institution? Anyone know?

4
Comment #2 by Anonymous posted on
Anonymous
#1: I'm about to turn 66 and have started running into this issue.  I haven't found a federal rule mandating that a bank permit breaking an IRA CD without penalty to allow an RMD withdrawal.  Many banks explicitly permit this, however, in their disclosures/deposit agreements, and some allow it informally.

4
Comment #3 by Anonymous posted on
Anonymous
#2 - Thanks for the info, much appreciated. I am still unclear though, even though the EWP may or may not not apply, does the entire CD have to be cashed in order to meet the RMD amount or can the balance of the CD simply be reduced by the amount of the RMD with the original term and rate unchanged? I realize that I should check with the institutions specifically involved in my case but I am trying to gain somewhat of an understanding before I actually talk with them. There must be some info in this regard, since it would affect many IRA CD holders, but I have yet to find it.

1
Comment #4 by Anonymous posted on
Anonymous
Ken, Do you happen to know whether they do a hard credit pull ?  Thanks.

1
Comment #5 by Anonymous posted on
Anonymous
I just got off the phone with my rep at Chase Bank.  He says it is not a Federal Law but something Chase provides for customers with IRAs who need to take a Required Minimum Distribution.  If the IRA is in a CD you can withdraw what you need for the RMD from the CD without actually breaking it and you don't have to pay the Early Withdrawal Penalty.  You can keep the CD intact except for the RMD being withdrawn from it.  I had them research this and call me back and I was told what was told to me is Chase's policy it is not a Federal law.  This is the reason I have been allowed to take any RMDs from CDs in the past without paying any EWPs.  Other banks may have a different policy so call and check what the rules are for your specific bank and even for any other Chase Bank you may have IRAs with.

4
Comment #6 by Anonymous posted on
Anonymous
#5 - Very helpful info....thanks. I guess the bottom line is that each institution adopts it's own IRA policy with respect to how RMD's are handled with regards to EWP's and the remaning balance of the CD's and the only way to be certain is to question each institution that may be involved. 

1
Comment #7 by Bozo posted on
Bozo
With respect to RMDs, you can take all your RMD from any IRA. For example, let's say you have an "aggregate" RMD of $40,000. You can take it in dribs and drabs from each IRA account, or you can take it from just one, or two (or three . . .). As a general rule, harvest the low-hanging fruit. If you have an IRA CD paying 1.5%, and others paying north of 3%, take your RMD entirely from the 1.5% IRA CD. RMD calculators are all over the web.

Most generally, you'll find an "exception" to the EWP in the CD disclosures for folks over 70 1/2 with IRA CDs. The "precise" issue to raise is whether they'll allow a partial withdrawal in "excess" of the RMD for that particular IRA CD. In my example above, you might get a raised eyebrow if you wanted to basically liquidate that 1.5% IRA CD without penalty just to cover your aggregate RMD (especially in a rising-rate environment). YMMV, and it never hurts to inquire.

 

3
Comment #8 by Anonymous posted on
Anonymous
#7:  Is the same true about RMD from multiple 401k accounts.  Withdraw the total RMD from only one 401k or must the RMD be withdrawn from each account?

1
Comment #10 by Anonymous posted on
Anonymous
#7 - In my case, I have five IRA accounts in five separate institutions. I realize that, in general, the entire RMD can be taken from one IRA CD, as opposed to having to take a portion from multiple IRA CD's, particularly if all IRA CD's are with the same institution. I suppose, however, that in situations where multiple institutions are involved, that an RMD would have to be taken from each institution based on the January 1 IRA balance in each respective institution. Seems to good to be true that the entire RMD could be taken from a single institution without an EWP. Your thoughts?

2
Comment #9 by Bozo posted on
Bozo
IRA accounts are totally different from 401K accounts. As I understand the rules, if you have a 401K AND you are still working for the company providing the 401K, the rules are different. Bizarre as it might appear, you might be able to continue to contribute to a 401K after 70 1/2, while obligated to withdraw your RMD from IRAs separate and distinct from that 401K. You might find this a tad confusing. Moreover, when you convert your 401K to an IRA . . .. Best to get a tax preparer who has really, really, good software.

1
Comment #11 by Anonymous posted on
Anonymous
#9:  I have 3 different 401k accounts and currently retired.  I don't plan on doing a rollover to an IRA.  Will I be required to withdraw the RMD from each account or can I withdraw the aggregate RMD from one 401k account?

1
Comment #12 by Anonymous posted on
Anonymous
#11 We have another thread on RMDs in which we discussed this and there was the same confusion over IRAs from 401Ks.  From what I know, the 401K is different from an IRA.  That is why I took my DP's 401K when he was retired and did a Rollover IRA with it.  It seems if you have more than one 401K you have to take the portion for your RMD seperately from each one and can't congregate them together the way you can with your Rollover IRAs.  You can call the IRS and verify this with them or if you know anyone who works with taxes they can explain it.  It isn't as easy for RMDs with 401Ks.

1
Comment #13 by Paoli2 posted on
Paoli2
#11  I would like to add that Ken in his Forum section has a post 6/15/12 "Overview of Required Minimum Distributions" and it includes an article "My Dollar Plan" which states that the 401Ks must be done seperately from each other.  You might want to check it out.

1
Comment #14 by Anonymous posted on
Anonymous
Does anyone know anything about the "capital club" which I think was for people with direct deposit which resulted in a bonus of .25% on new cds 

1
Comment #15 by AnonymousPaoli2 (anonymous) posted on
AnonymousPaoli2
#14  I just called and spoke to rep at SDFCU about the Capital Club.  She said they did have it but it was discontinued and now everyone gets the same rate.  I called because I checked their webpage and could not find any info about it.  Hope this helps.

3