Dedicated to Deposits: Deals, Data, and Discussion
Air Force Federal Credit Union1.75%$100k-7 Year CD
Air Force Federal Credit Union1.75%$100k-7 Year IRA (Traditional,Roth,CESA)
Accounts mentioned in this post. Rates as of August 21, 2014

Top Long-Term CD Rates at Air Force FCU - Easy Membership


Air Force Federal Credit Union

It has become very difficult finding CD rates over 2.00% in this awful interest rate environment. That's even the case for long-term CDs with terms over 5 years. In the last few months, we have seen several credit unions that have cut their long-term CD yields to 2.00% or lower. One credit union that hasn't yet cut rates like this is Air Force Federal Credit Union. It's still offering a 7-year CD and IRA CD with a 2.25% APY for a $100,000 minimum deposit and a 2.20% APY for a $2,500 minimum deposit. The shorter-term CD rates are not quite as competitive. These rates are listed in the credit union's rates page as of 9/26/2012.

The credit union's early withdrawal penalty is a little convoluted:

The early withdrawal penalty will be equal to one half of the dividends that would accrue from the date of the withdrawal to the maturity date applying the contracted rate on the certificate based to the amount withdrawn over and above any dividends credited to the certificate to date of withdrawal.

This penalty is listed at the bottom of the CD rate tables. So if you make an early withdrawal within one year of maturity, it appears you would lose six months of interest (dividends). However, if it's four years before maturity, you'll lose two years of interest.

Membership Eligibility

It appears that Air Force FCU has expanded its field of membership. It used to be primarily limited to those connected to the military in certain states. However, there's now a foundation that anyone can join to become eligible for credit union membership. If you click on the "Join Us" link on the top menu of Air Force FCU's website, it will take you to an online application. Click on the "become a member" button, and you'll see all of the options for membership eligibility. I noticed a new option:

16. Members of The Lackland Gateway Heritage Foundation Inc.

Below the membership eligibility option list, you can select "Not a member of The Lackland Gateway Heritage Foundation Inc, but I would like to join." If you click on the informational link for this foundation, a page is shown describing this foundation. On this page it states the following two important facts:

* Membership in the Foundation is open to all people regardless of any military service affiliation.

* Membership dues in the amount of $25 are required to join the Foundation.

You can be immediately eligible to join Air Force FCU if you fall under the other options in the membership eligibility list. The first option is:

Military and Civilian personnel regularly employed by the Department of Defense who are assigned to, stationed at, or work at any United States Government installation, facility, or unit, afloat or ashore in Texas, Oklahoma, Arkansas, Louisiana, or Mississippi.

Credit union membership requires a minimum balance of $5 in the regular savings account.

There was an interesting event at this credit union in 2010 regarding its field of membership. The NCUA cited Air Force FCU for improper membership. I reviewed NCUA's letter of understanding at the bottom of this 2010 blog post.

Other Deposit Products and Deals

The credit union is currently having a refer-a-friend promotion in which both you and the person referred can receive a $50 bonus. The new member must maintain a savings and checking account for one year. Please refer to the Air Force FCU promo page for more details.

The credit union offers a free checking account with no monthly service fees. The credit union is part of the CO-OP Network. This allows members to use any of the CO-OP Network's 28,000 ATMs world-wide with no surcharge or transaction fee.

Credit Union Overview

Air Force FCU branches are located in San Antonio and Del Rio, Texas. The credit union is also part of the CU Service Centers which allows you to make several banking transactions at shared branch offices around the nation.

The credit union has an overall health score at of 5 stars (out of 5) with a Texas Ratio of 4.83% (excellent) based on March 2012 data. Please refer to our financial overview of Air Force FCU for more details. The credit union is federally insured by the NCUA (Charter # 8169).

How These CD Rates Compare

Based on this expanded field of membership, Air Force FCU can be included with institutions that offer CDs that are nationally available. For this group, this 2.25% APY 7-year CD is a rate leader for all terms. The next best is 2.10% APY for a 10-year CD at Discover Bank. The next best yield for a 7-year CD is 2.02% APY at Pentagon Federal Credit Union.

There continues to be a few all-access credit unions offering 2.00% APY 5-year CDs. The best deal is currently at Eli Lilly Credit Union. The best 5-year CD rate at a bank is 1.90% APY at CIT Bank.

These rates are accurate as of 9/26/2012.

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

  Tags: CD rates, IRA rates, Texas, Air Force Federal Credit Union, Texas

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Comment #1 by paldridge (anonymous) posted on
I took out a 7 yr jumbo CD at Security Service credit union in San Antonio this week @2.81% (2.85 APY). Although I live in Austin ( over an hr away)  one way to join was to be a member of either the Catholic church  or  Methodist Southwest conference.  Austin is in the SW conference  and I am a Methodist  member. Luckily they didnt ask  my minister how frequently I actually go to church.According to the rate sheet that came out 9/25, there is a 15 mo CD @ 1.25%, 5 yr @ 2.30 ( APY, jumbo)

Comment #2 by cactus posted on
Sounds like EWD attacks principal.

Doesn't even make grammatical sense: "The early withdrawal penalty will be equal to one half of the dividends that would accrue from the date of the withdrawal to the maturity date applying the contracted rate on the certificate based to the amount withdrawn over and above any dividends credited to the certificate to date of withdrawal."

Comment #3 by Bob Glenn, President of AFFCU (anonymous) posted on
Bob Glenn, President of AFFCU
The Early withdrawal penalty is calculated by taking 1/2 of the dividends that would be earned on the principal withdraw from the date of withdrawal to maturity.  We allow dividends to be withdrawn without penalty and we allow partial withdrawal of principal.  The wording in the penalty was crafted by attorneys . . . I quess enough said.

Comment #4 by Anonymous posted on
Will call them Monday for an answer to the following questions, but in the meantime, does anyone know if the membership dues in the amount of $25 to join the The Lackland Gateway Heritage Foundation is one time or annual? 

And if it is annual, then what happens, if anthing, to one's membership in the Air Force FCU if one doesn't renew membership in the Lackland Gateway Heritage Foundation?  

Comment #5 by pearlbrown posted on
Anonymous #4, the "about us" page ( reads in part:
"Air Force Federal Credit Union membership allows you to take advantage of friendly, full-service financial convenience that lasts a lifetime – whether you change jobs, move away or retire."  

I think with most credit unions the policy is "once a member always a member" unless you close your share account and end the membership. You may want to confirm with AirForce Credit Union if that is the case.  I'll bet it won't matter if you don't renew the membership in the foundation. 

Hope that helps~

Comment #7 by Anonymous posted on
Hello Has anyone opened account here, how is service. Do they have revicable or irrevocable trusts. Do they send paper statemenes Thank you

Comment #8 by Anonymous posted on
Thank you, Mr. Glenn for the answer. The net-net is that if principal is withdrawn less than 1/3 through the life of the CD, the EWD does attack principal.