If you haven't been turned off by what Fort Knox Federal Credit Union did in 2011, you may want to consider its current CD specials. The two best deals are a 1.40% APY 23-month CD and a 1.20% APY 14-month CD. There’s also a 0.75% APY 9-month CD special. Minimum deposit is $500. These rates are listed in the credit union's Term Share Certificate Rates page as of 8/6/2013. Thanks to DA member Pearlbrown for reporting on this in the DA forum.
The last time I reported on Fort Knox FCU CD specials in December, the credit union was restricting the CD specials to long-time members and residents of KY, TN and IN. However, Fort Knox FCU has removed this restriction. So now these CD specials are available to all members.
Beware of Fort Knox FCU’s History
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.
I know some readers might prefer that I not give Fort Knox FCU any publicity. I think it’s better to give all the facts including its history. If I don’t report on these CDs, people will get information about these CDs from other websites which won’t provide any of the credit union’s history.
Other Credit Union Perks
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 nice cash-back credit card with 5% cash back for gas 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! Call your local branch for more details.
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 2.52% (excellent) based on March 2013 data. Please refer to our financial overview of Fort Knox FCU for more details. The credit union is federally insured by the NCUA (Charter # 7000).
How These CD Rates Compare
If you don't want to do business with Fort Knox FCU, there are other options. The highest 24-month CD rate that's nationally available is 1.30% APY at Connexus Credit Union. However, this requires an active checking account with direct deposit. The highest without a checking requirement is 1.25% APY at Salem Five Direct.
The highest 12-month CD rate that's nationally available is 1.16% APY at State Bank of India - Chicago, but this has to be opened by mail if you don’t live near a branch. Connexus Credit Union is close behind with a 1.10% APY 12-month CD, but like the 24-month CD, this requires an active checking account with direct deposit. The highest at an internet bank is 1.05% APY. This is available from a few internet banks including GE Capital Bank and DollarSavingsDirect.
The above rates are accurate as of 8/6/2013.
Searching for the Best 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.