Banks were the first to start increasing their long-term CD rates when Treasury yields began to rise in May, but a few credit unions have also been responsive. One of those is Apple Federal Credit Union. It has again increased its 7-year and 10-year CD and IRA CD rates. Its 10-year CD rate is now 2.50% APY (was 2.40%), and its 7-year CD rate is now 2.10% APY (was 2.00%). Minimum deposit is $500, and these are also available as an IRA CD. The rates are listed in the credit union's rate table as of 9/13/2013.
One major downside with these long-term CDs is a very harsh early withdrawal penalty. According to the Apple FCU’s account disclosure the penalty for terms greater than 60 months is:
the lesser of dividends earned since issuance or renewal or 1,095 days dividend.
That's 3 years of interest. As a comparison, PenFed's early withdrawal penalty for terms of 5 years or more is one year of interest. Like PenFed, they don't eat into your principal. So if the early withdrawal is at year one, you'll just lose one year of interest.
Credit Union Membership
According to the Apple FCU’s Join page:
Apple FCU membership and account opening is available to anyone who is an active member of NVADACA
Anyone can join NVADACA. The regular annual membership costs $20. According to the NVADACA membership page:
REGULAR MEMBERSHIP is open to anyone who is interested in the purpose of the Association.
You can be eligible to join Apple FCU without joining NVADACA if you live, work, worship or attend school in certain Virginia counties. There’s also a list of select employee groups. Please refer to Apple FCU’s Join page for the full details.
Credit Union Overview
Apple FCU’s main office is located in Fairfax, Virginia, and it has many other branch offices throughout Northern Virginia.
Apple FCU is a sizable credit union with $1.87 billion in assets. It has an overall health score at DepositAccounts.com of A+ with a Texas Ratio of 5.58% (excellent) based on June 2013 data. Please refer to our financial overview of Apple Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 11307).
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: