It has been over a year since I last reviewed Andrews Federal Credit Union and its share certificates. It continues to offer competitive CDs that can be opened by people in any state. Its best deals are long-term CDs and IRA CDs. These include a 1.91% APY 5-year CD, 1.71% APY 4-year CD and a 1.41% APY 3-year CD. Minimum deposit is $1,000. These rates are listed in the credit union's rates page as of 5/29/2013.
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."
Credit Union Membership
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 3.40% (excellent) based on December 2012 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. The CD rates of these two credit unions used to be similar, but PenFed CD rates have fallen considerably, and Andrew FCU rates now have a big lead. In fact Andrew’s 3-year CD rate is higher than PenFed’s 7-year CD rate.
There is currently just one all-access credit union that has a higher 5-year CD rate with no checking requirements. That’s Mountain America Credit Union which has a 2.00% APY 5-year CD. The highest 5-year CD rate at an internet bank is only 1.75% APY.
Andrews FCU’s 4-year CD yield of 1.71% is currently the highest 4-year rate for any all-access credit union and internet bank.
For a 3-year term, Andrews FCU’s CD yield of 1.41% is just under the best internet CD yield of 1.50% at Salem Five Direct.
These rates are accurate as of 5/29/2013.
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: