Chartway Federal Credit Union is offering some competitive CD rates. The most competitive is the 5-year CD which has a top rate of 3.11% APY for a minimum deposit of $10,000. The 3-year CD is also competitive with a 2.30% APY for a $10,000 minimum. These yields require a Preferred Plus, Elite 50 Plus or Premier Checking. Without these checking accounts, the rates are 25 basis points lower. These rates are listed in the credit union's rates sheet as of 9/03/2010.
The checking account requirement does hurt this deal. All three of the qualifying checking accounts have a minimum balance requirement to avoid a monthly fee. The Preferred Plus checking and the Elite 50 Plus checking have a $10 monthly fee unless a minimum balance of $2,500 is maintained. These two would be preferable to the Premier Checking which has a $20 monthly fee unless a minimum balance of $5,000 and direct deposit are maintained.
Unfortunately, their eChecking account does not qualify for this CD. This is a reward checking account that pays up to 3.84% APY on a $20K balance (see review).
Membership is open to those who live, work, worship or go to school in a defined geographic area served by the credit union's Virginia, Florida, Rhode Island and Texas branches. A reader noted in a previous post that the geographic areas are narrow, so please call to see if you can be eligible. You can also be eligible via schools and select employer groups. The online application has a list of eligible schools and employers. Please refer to their Membership Page for more details. Membership requires a $5 minimum deposit into the Prime Share savings account.
Branches are located in Virginia, Georgia, Rhode Island, North Carolina, Texas, Florida, Ohio and New Jersey.
The credit union has a Texas Ratio of 9.94% (excellent) and an overall health score of 4 out of 5 based on June 2010 data at DepositAccounts.com (see our financial overview of Chartway FCU). Chartway is federally insured by the NCUA (Charter # 13242).
Texas Deposit Account Rates and Deals
Browse through the stories below to view current deals for Texas banks or select an item from the menu bar above to view current rates in Texas.
Pentagon Federal Credit Union (PenFed) is yet another rate leader to make cuts to its CD rates. Economic data of a slowing economy and falling Treasury yields last month had pointed to a deposit rate environment that would become worse. Unfortunately, that did happen as we saw last week when several CD rate leaders including Alliant Credit Union, Melrose Credit Union, Ally Bank and Discover Bank reduced their CD rates. In this new month PenFed joins this group with its own CD rate cuts. Below are the new CD yields for September 2010. I've noted the old yields in parenthesis.
- 3.49% APY 7-year CD (was 3.75%)
- 2.75% APY 5-year CD (was 3.00%)
- 2.50% APY 4-year CD (was 2.78%)
- 2.00% APY 3-year CD (was 2.25%)
- 1.50% APY 2-year CD (was 1.75%)
- 1.26% APY 1-year CD (was 1.31%)
Minimum deposit is $1,000. The rates are also available in an IRA. These yields are listed in PenFed's Money Market Certificates page as of 9/01/2010. Even though PenFed typically maintains CD rates through the month, they no longer guarantee it.
Below is an updated early withdrawal yield table that shows approximate average yields you would receive if you close these CDs early. It allows you to determine if it makes more sense to buy a long-term CD rather than a short-term CD. I also included Ally Bank's 5-year CD which has a 2.74% APY as of 9/01/2010 with only a 60-day early withdrawal penalty.
Approximate Yields After Early Withdrawal Penalties
| Year of Early Withdrawal | PenFed's 7-year 3.49% CD | PenFed's 5-year 2.75% CD | Ally's 5-year 2.74% CD |
| year 1 | 0.00% | 1.38% | 2.29% |
| year 2 | 1.75% | 2.06% | 2.51% |
| year 3 | 2.33% | 2.29% | 2.59% |
| year 4 | 2.62% | 2.41% | 2.63% |
| year 5 | 2.79% | 2.75% (no penalty) | 2.74% (no penalty) |
| year 6 | 2.91% | n/a | n/a |
As you can see from the above table, if you think you're going to leave the CD untouched for at least 3 years, PenFed's 7-year CD is better than its other CD terms. Ally Bank is still the best deal if you think it's likely you'll break the CD before 4 years (either because you'll need the money or if interest rates shoot up). At year 4, PenFed's 7-year CD becomes the best deal. For more details about PenFed CDs, please refer to my PenFed CD review. For more details about Ally Bank's CDs and early withdrawal penalty, please refer to my Ally Bank CD review.
PenFed's Certificate Reservation Program
I logged into my PenFed account, and I checked the status of PenFed's certificate reservation program. I first reported on this program on August 19th. It allows select PenFed members to reserve CDs in January 2011. The best is a 5.00% APY 10-year CD. As I mentioned, I was informed that the program was only open to PenFed members who had CDs maturing in October. However, several readers who were not in the select group have commented in my post that they have been able to reserve these CDs online. I have not been able to find out if there's any chance that PenFed will not honor these reservations.
PenFed had allocated $240 million of funds for this program. As of this morning (9/01/10), there is $186.68 million left according to PenFed's Certificate Reservations page (available when you're logged in). I'm glad to see the funds are lasting. Perhaps most members are not jumping on this deal because they believe these CD terms are too long.
PenFed Membership
PenFed makes it easy for anyone to join and open accounts online. If you don't qualify based on military, employer or family, you can become eligible by joining the National Military Family Association (NMFA). Please refer to How to Join Overview Page for details. Joining NMFA and PenFed can be done at the same time all online. The yearly membership for NMFA is $20, but your membership in the association does not need to be maintained to continue as a PenFed member.
Branch Locations
Accounts can be opened online, but for those who prefer branches, PenFed has branches in several parts of the country including Washington DC, Maryland, Virginia, New Jersey, New York, Colorado, North Carolina, Hawaii, Puerto Rico, Missouri and Texas.
Financial/NCUA Info
PenFed's ratings for safety and soundness continue to be strong: 4 stars (excellent) at BauerFinancial, 4 stars (sound) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview of Pentagon FCU). These ratings are based on March 2010 data except for DepositAccounts.com which is based on June 2010 data. PenFed is one of the largest credit unions in the US with $14.33 billion in assets and $11.62 billion in deposits. It's federally insured by the NCUA (Charter # 227).
Searching for the Best CD Rates
To search for the best nationwide rates and the best rates in your state, please refer to the following tables at DepositAccounts.com:
First State Bank is listing on its home page its Barbell Investment Strategy which includes a top yield for a money market account and a 7-year CD. The yields are in fact quite competitive. The 7-year CD has a 3.80% APY. The money market account has tiered rates with a top rate of 1.39% APY for balances of at least $90K. The rates fall quite a bit for lower rates: 0.90% for $50K-$90K and 0.79% for $25K-$50K. There's also a competitive 5-year CD: 3.04% APY (3.15% APY for a $100K minimum). These yields are listed in the bank's rates page as of the morning of 9/01/2010.
It appears that a branch visit is required to open an account. Branches are located in the Central Texas cities of New Braunfels, Canyon Lake, Gruene, Bastrop and Smithville. These cites are close to Austin and San Antonio. Before making a long drive, make sure to call to ensure they accept deposits from outside their local market area.
The bank's overall health score is 4 out of 5 with a Texas Ratio of 4.66% at DepositAccounts.com (see our financial overview of First State Bank). The bank has been a FDIC member since 1934 (FDIC Certificate # 2413).
Searching for the Best CD Rates
To search for the best nationwide rates and the best rates in your state, please refer to the following tables at DepositAccounts.com:
The First State Bank continues to offer 4.00% APY (as of 8/24/10) on its Diamond Reward Checking Account. The rate applies to balances up to $25K if the typical reward checking requirements are met. The rate is the same as when I reviewed this account in November 2009. One thing that I just found out from the bank is that any Texas resident can apply for this account. The online application is available at the bank's Diamond Reward Checking page.
Another good deal for those in Texas continues at ViewPoint Bank. The bank is still offering 4.00% APY on balances up to $50K (see review). This used to be available nationwide, but in late July, the bank started to limit applications to just the state of Texas. If you can get through the difficult application process and if you could avoid the gotchas, ViewPoint's Absolute Checking is a very good deal since the 4.00% APY applies to balances up to $50K instead of the more typical $25K.
Some Texas residents might have access to rates even higher than 4.00% if you live near the right bank or credit union. Two examples as of 8/24/10 include the 5.01% APY reward checking account at Texas Citizens Bank in Houston (see review) and the 4.51% APY reward checking account at NavyArmy Federal Credit Union in Corpus Christi (see review). To find other good deals on reward checking accounts in Texas, please refer to the Texas reward checking accounts section at DepositAccounts.com.
High-Interest Reward Checking Accounts Outside of Texas
To find reward checking accounts in your state or that are available nationwide, please refer to the reward checking section of DepositAccounts.com.
Bank of the Ozarks is advertising two bank account specials: a 1.41% APY 9-month CD and a 1.21% APY money market account. The minimum for the CD is $5K, and money market minimum balance is $10K. These limited-time promotions don't appear to be listed at the bank's website. They were advertised in yesterday's (8/22/10) Dallas Morning News. The ad is available online here.
According to the ad, these offers are available only to those in the Dallas-Forth Worth metro area. The ad lists the Frisco branches, the Lewisville branch and the Allen branch. Bank of the Ozarks is based in Little Rock, Arkansas. Most of its branches are in Arkansas. It also has branches in Alabama, Georgia, South Carolina and North Carolina.
The bank's ratings for safety and soundness are above average: 5 stars (superior) at BauerFinancial, 4 stars (sound) at Bankrate.com and an overall health score of 3 out of 5 (see our financial overview for Bank of the Ozarks). These ratings are based on 3/31/10 financial data. The bank has been a FDIC member since 1934 (FDIC Certificate # 110).
Searching for the Best CD Rates
The above interest rates may seem low, but unfortunately in this interest rate environment, they're competitive. For a 9-month CD, the best yield available nationwide is at NewDominion Bank which is offering 1.30% APY as of 8/23/10.
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.
Navy Army Federal Credit Union continues to list competitive certificate rates, money market rates and reward checking rates. The CD rates have held since my June post. The best CD rate is a 2.40% APY for a 2-year term. Below is the full list of CD rates as shown on the credit union's rates page as of the morning of 8/20/10:
Term APY $1K Min APY $100K Min
3 month 1.50% 1.55% 6 month 1.60% 1.65% 9 month 1.65% 1.70% 12 month 2.00% 2.10% 24 month 2.25% 2.40%
The IRA CD rates are even better: 2.25% APY for 1 year and 2.70% APY for 2 years ($100K minimum, 0.10% less for $1K minimum). These IRA CD rates are listed in the credit union's IRA rates page as of 8/20/2010.
Like the CD rates, the money market rates have also held since June. The top money market account rate is 1.65% APY for a $50K minimum balance as of 8/20/2010. Other rate tiers include 1.35% APY $25K-$50K and 1.25% APY $2K-$25K. One downside is that withdrawals have a minimum of $500.
This credit union has just about everything a saver could want including a reward checking account with a top rate of 4.51% APY for balances up to $25,000 as of 8/20/2010 (see review).
From the name of the credit union, it might seem that you may need a military connection to join. But that is not the case. The credit union has a "community" field of membership which is open to those who live, work, worship or attend school in one of the following Texas counties: Aransas, Bee, Jim Wells, Kleberg, Nueces and San Patricio. This is listed in the credit union's eligibility guidelines.
If you qualify for membership, you can now apply online. Unfortunately, they don't waive their $15 membership fee for applying online. You'll also need at least $25 for the savings account which must be maintained to remain a member.
Branches are located in the Southeast Texas cities of Corpus Christi, Kingsville, Beeville, Portland and Rockport.
NavyArmy FCU's ratings for safety and soundness continue to be above average: 4 stars (excellent) at BauerFinancial, 4 stars (sound) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview for NavyArmy FCU). These ratings are based on March 2010 data. The credit union is federally insured by the NCUA (Charter # 9998).
Texas Bank is offering a high-yield reward checking account called Texas Reward Checking. The bank doesn't have many details about this account on its website except for the yields that are listed in the rate table. However, they recently advertised this account in the Tyler Morning Telegraph. The ad is available here, and it provides many details. The account has the following rates and features if certain monthly requirements are met (as of 8/18/2010):
- 4.07% APY on balances up to $25,000
- 0.25% on portion of balance over $25,000
- 0.25% base rate if requirements are not met
Monthly requirements include:
- 12 Visa check card purchases
- 1 direct deposit or direct debit
- Receive e-statements and maintain a valid email address
Other account features include:
- $100 minimum opening deposit
- No minimum balance
- No monthly fees
- Free bill pay
- First box of checks is free
- ATM refunds of up to $15 per statement period (doesn't appear to be dependent on meeting requirements)
It appears that a branch visit is required to open an account. Branches are located in the East Texas cities of Tyler, Tatum, Nacogdoches and Henderson.
The bank has an overall health score of 4 out of 5 based on 3/31/10 data at DepositAccounts.com (see our financial overview of Texas Bank). The bank has been a FDIC member since 1973 (FDIC Certificate # 21074).
Other High-Yield Reward Checking Accounts
It's nice to see another four-percent-plus reward checking account. These are becoming less common as many banks cut rates. Banks often advertise "CD-like rates" for these accounts. Hopefully, they won't notice that there are no longer any CD rates over 4% these days.
To find reward checking accounts in your state or to find those available nationwide, please refer to the reward checking section of DepositAccounts.com.
University Federal Credit Union is offering some competitive long-term CDs and IRA CDs. The best CD rates are available for Web Certificates in which you open the CDs online. Minimum deposit is $2,500. Early withdrawal penalty for terms over 12 months is 6 months of interest (see disclosure). The following are some of the best rates listed in the credit union's certificate rates page as of 8/16/2010:
- 3.05% APY 60-month CD
- 2.60% APY 48-month CD
- 2.42% APY 36-month CD
Credit union membership is open to members of either the University of Texas Longhorn Association or the Wheatsville Co-op. The Longhorn association requires a one-time $20 donation, and the Weatsville Co-op has a $15 membership fee. Please refer to the credit union's membership page for more details.
The credit union has an online membership application that allows for electronic funding. A $5 minimum balance in the savings account is required for membership. Also, there's a one-time $1 fee.
Branches are located in the Texas cities of Austin, Round Rock and Galveston.
The credit union has a 4 out of 5 overall health score at DepositAccounts.com (see our financial overview of University FCU). The credit union is federally insured by the NCUA (Charter # 1367). It's a sizable credit union with $1.18 billion in assets.
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.
Security Service Federal Credit Union increased the yield of its 5-year CD by 15 basis points. The top rate is now 3.25% APY for a $100K minimum deposit. It continues to offer a very competitive 3-year CD special with a top rate of 2.75% APY for a $100K minimum deposit. Unfortunately, it again lowered the 15-month CD special rates. The top rate is now 1.60% APY for a $100K minimum. The following is a few of the top CD rates as listed in the credit union's rate sheet as of 8/08/2010:
- 3.70% APY 7-year CD, $100K min
- 3.25% APY 5-year CD, $100K min
- 2.75% APY 3-year CD, $100K min
- 1.60% APY 15-month CD, $100K min
Rates are slightly lower for smaller deposits. For a $500 minimum deposit, the rates are 15 basis points lower than the rates listed above. These rates are available for both CDs and IRA CDs.
For more details about these CDs, please refer to the credit union's disclosure and search for "share certificate". In this section, the early withdrawal penalties are described. Penalties for terms from over 1 year to under 5 years is a maximum of 180 days of interest. For terms of 5-years and above, the maximum penalty is 360 days of interest.
Credit union membership is open to those who live, work or worship in Central Texas counties of Atascosa, Medina, Uvalde or South Bexar in addition to other areas. In South Texas the eligible counties include Aransas, Cameron, Hidalgo, Nueces and San Patricio. In Colorado the eligible counties include El Paso, Pueblo and Denver.
There are several groups which can also qualify you for membership including the UT at San Antonio Alumni Association and the FiftyPlus Club. Please refer to the credit union's membership page for more details. Membership requires a $5 minimum deposit into a share savings account.
Branches are located in several Texas cities including Brownsville, McAllen, Corpus Christi and San Antonio. Branches are also located in several Colorado cities including Colorado Springs, Denver, Aurora, Fountain and Pueblo.
The credit union's ratings are above average: 4 stars (excellent) at BauerFinancial and an overall health score of 4 out of 5 at DepositAccounts.com (see our Security Service FCU financial overview page). Ratings are based on March 2010 data. The credit union is federally insured by the NCUA (Charter # 11065). It's a large credit union with $5.56 billion in assets.
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.
You can now get very close to a 4.00% CD at USAA Bank. It recently increased the rate of its 7-year CDs, and the Super Jumbo now has a 3.96% APY. This requires a $175K deposit. Below is the full list of rates for the different minimum deposits:
APYs of USAA Bank's 7-year CD and IRA CD as of 8/06/2010
- 3.96% min $175,000
- 3.70% min $95,000
- 3.60% min $1,000
Note, after 7-years with a 3.96% APY, $175K will grow to $229.7K which is under the standard FDIC deposit insurance limit. That's one of the very few advantages of a low interest rate.
For more info on USAA Bank and these CDs, please refer to this recent blog post. Note, the early withdrawal penalty of the 7-year CD is 365 days interest on the amount withdrawn. Also note that the USAA Bank's disclosure states that "Any withdrawals before the maturity date require Bank’s consent." I looked into the possibility of a bank refusing an early withdrawal in this post.
PenFed's 7-year CD rate is close to these rates. I reviewed PenFed's long-term CDs and looked at the effect of the early withdrawal penalties in this post. As I described in the PenFed post, you might do better in a long-term CD that's closed early compared to a short-term CD. The best example of this is Ally Bank's 5-year CD which only has a 60-day early withdrawal penalty (see my Ally Bank CD review).
Thanks to the reader who emailed me news of this rate change.