Last month, 1st United Credit Union (1st United) raised the rate on its 24-month Fixed Share Certificate (2.00% APY) by an impressive 90 bps. This is the highest APY in the Share Certificate’s 18-month history. The minimum deposit is $1, with no stated balance cap.
In addition to offering a good rate, the 24-month Fixed Share Certificate has two options that increase its intrinsic value. The fine print on the Deposit Rates page states:
If we advertise a higher rate on certificates of this type you can make a one-time request during your certificates term to move up to the new rate.
You may add funds to the balance of this certificate at any time.
As stated in the Member Account Agreement and Disclosure document, the Early Withdrawal Penalty reads as follows:
If the term is 13 months or longer, the dividend penalty will be the lesser
of the dividends earned or 180 days dividends on the amount withdrawn.
Thanks to DA reader, Carpline, for his Forum post about 1st United latest offering.
Since I last wrote about the Credit Union, there have been two significant changes: a re-brand and an expansion in the field of membership (FOM). Formerly known as 1st United Services Credit Union, the new name is 1st United Credit Union.
Residency: Four California counties have been added to the FOM, and now individuals who live, work, or attend school in Alameda, Contra Costa, Kings, San Joaquin, Solano, or Stanislaus County are eligible to join.
Employment: Employees of 20 SEGs (includes state and local government organizations) also qualify for membership.
Relationship: Immediate family members of current members, related by blood or marriage, are eligible for membership.
Joining 1st United and/or opening a Fixed Share Certificate can be done online, or by visiting any of ten California branches located in Alameda, Berkeley, Castro Valley, Fremont, Hayward, Oakland (2), Pleasanton, San Leandro, and Union City.
Credit Union Overview
1st United Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.15% (excellent) based on December 31, 2016 data. In the past year, 1st United has increased its total non-brokered deposits by $74.55 million, an excellent annual growth rate of 9.73%. Please refer to our financial overview of 1st United Credit Union (NCUA Certificate # 63958) for more details.
Founded in 1932 as City & County Employees' Credit Union, 1st United Credit Union was one of the first credit unions in the State of California formed for the benefit of state and local government employees. The original field of membership (FOM) included Alameda County employees but was expanded to include employees of city and county hospitals and schools. Following a merger in 1996 with ALFA Federal Credit Union, the Credit Union's name was changed to better reflect the FOM. 1st United Credit Union became a community chartered credit union in 2001 and today has more than 53,700 members and assets in excess of $936 million.
How the Fixed Share Certificate Compares
When compared to the 244 similar length-of-term CDs tracked by DepositAccounts.com, that require a similar minimum deposit and are available within the FOM, 1st United Credit Union's 24-Month Fixed Share Certificate APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.00% APY||24-Month Fixed Share Certificate||1st United Credit Union|
|1.80% APY||25-Month Special CD||Veridian Credit Union|
|1.70% APY||24-Month Certificate||Connexus Credit Union|
These rates are accurate as of 5/8/2017.