When I last reviewed Pen Air Credit Union in April, I mentioned that its CD rates were competitive. After 4 months, Pen Air CD rates have held while the rates of many other institutions have fallen. For example, in late April I had listed 5 all-access credit unions which had 5-year CD rates of 2.20% or higher. In my last CD rate survey, I had listed only one all-access credit union with a 5-year CD rate over 2.00%. So now Pen Air Credit Union CD rates are much more competitive. The two best ones are a 2.00% APY 5-year CD and a special 1.75% APY 42-month CD. Minimum deposit is $500. The same rates are also available in IRAs. These rates are listed in the credit union's share rates page as of 8/23/2012.
I was not able to find a CD disclosure online. However, I was able to find a few CD details using the credit union's Ask a Question tool. Below are some of the Q&As relevant for CDs:
How much is the penalty for early withdrawal from a Certificate?
The early withdrawal penalty for a certificate less than 6 months is 90 days of interest. Any CD of 6 months or longer is a penalty of 180 of interest.
How many days do I have once my Certificate of Deposit matures to make a decision regarding what I want to do with my money in that account?
You have 7 calendar days from the CD maturity date to make changes without a penalty.
I need to take a Required Minimum Distribution, but all of my IRA funds are in certificates. Will there be an early withdrawal penalty?
No, there is not an early withdrawal penalty for required minimum distributions.
The credit union used to limit membership to active duty or retired military and current or retired federal civil service employees. However, there's now an additional way to qualify. Membership is now open to Friends of the Navy-Marine Corps Relief Society Member. Please refer to the credit union's membership page for the full details.
There's an online application which allows people to join and open accounts. On the first page of the application, the user is required to select an eligibility option. Below is the option which appears to allow anyone to join:
Join the "Friends of the Navy Marine Corps Relief Society" association and become eligible for Pen Air FCU membership. A $3 membership fee required.
Credit union membership also requires a one-time $2 fee and a minimum balance of $25 in the savings account.
Credit Union Overview
Pen Air FCU branches are located in the Pensacola metro area in Florida and in the Mobile metro area in Alabama. The credit union is also part of the CU Service Centers which is a nationwide network of shared branches.
The credit union has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 10.12% (above average) based on March 2012 data. Please refer to financial overview of Pen Air Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 1303).
How These CD Rates Compare
The highest 5-year CD rate that's nationally available is 2.12% APY at the all-access credit union US Senate Federal Credit Union. This requires a $60K minimum deposit. For deposits under $20K, the yield is 10 basis points lower.
There are just a couple of other all-access credit unions that are offering 2% APY 5-year CDs. One is Mountain America Credit Union. The other is Connexus Credit Union. However, Connexus requires an active checking account to qualify for the 2.00% APY.
The highest 5-year CD rate at an internet bank is 1.90% APY at CIT Bank. This requires a $100K minimum deposit. The yield for a $1,000 minimum is 1.85% APY.
These rates are accurate as of 8/23/2012.
Searching for Top 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.