Fort Knox Federal Credit Union recently increased its 59-month CD rate from 2.00% to 2.25% APY which makes it the highest rate for a nationally available 5-year CD. The shorter term CDs are much less competitive. Minimum deposit is $500. This rate is listed on the credit union rates page as of 7/2/2012. Thanks to the reader who mentioned this change in the comments.
The early withdrawal penalty for the 59-month certificate is equal to 365 days of interest. This is specified in the small print below the rate table.
Fort Knox FCU is well known here as the credit union which raised the early withdrawal penalty on members' existing certificates. A member filed a complaint with the NCUA over this issue, but the NCUA ruled in favor of Fort Knox FCU's right to increase the EWP based on generic clauses in the membership agreement. I have the details in this post.
If this EWP incident isn't a deal killer for you, there are several nice perks with Fort Knox FCU membership. First, the credit union is part of the CU Service Center which allows you to take care of many banking transactions at a shared branch. In 2010 a reader described how he easily opened a Fort Knox FCU CD by deposited a large check at a local credit union that belonged to this network. The deposit was made to his Fort Knox savings account. He called Fort Knox FCU that same day, and he was able to open the CD with the funds from the deposited check.
The credit union offers a free checking account with free ATMs worldwide.
Fort Knox FCU also offers a great cash-back credit card with 5% cash back for gas and 1.25% cash back on all other purchases.
According to the credit union's membership eligibility page:
If you do not meet any of these eligibility criteria, you may qualify for membership by joining the American Consumer Council --it's free!
There's a "Become a member" link on this page which takes you to an online application. In the online application where you select how you're eligible to join, it states:
If you can't find an eligibility requirement to match your situation, you can still join the credit union. Just select the "I'm eligible for membership through" drop down to the left and choose the "other" option.
Membership requires a one-time $10 fee and a minimum $5 balance in your share account.
Credit Union Overview
Fort Knox Federal Credit Union branches are located in several cities in Kentucky including Fort Knox, Radcliff, Elizabethtown and Campbellsville. Also, as I mentioned above, the credit union belongs to the shared credit union network that allows you to perform several banking transactions at shared branches across the nation.
The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 2.69% (excellent) based on March 2012 data. Please refer to our financial overview of Fort Knox Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 7000).
How This CD Rate Compares
This 59-month CD rate is currently the highest CD rate for a term around 5 years that's available nationwide. The second highest is 2.17% APY at Melrose Credit Union. The highest 5-year CD rate at a bank is 1.91% APY at State Bank of India, NY and The National Republic Bank of Chicago.
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.