Advancial 4- and 5-Year Jumbo CD APYs Are Near-Rate Leaders
It’s been more than nine months since my last Advancial blog post. While most credit unions and banks have been increasing rates since the beginning of the year, Advancial Certificate rate remained unchanged until the beginning of September. In the past four weeks, two very substantial rate increases (totaling 175 and 188 bps, respectively) boosted the 4-year and 5-year Jumbo Certificate APYs to near-rate leading levels.
Advancial Certificates feature tiered APYs based on minimum opening deposits: Certificates ($1k min), Junior Jumbo Certificates ($25k min), and Jumbo Certificates ($50k min). The corresponding APYs are tiered in increments of 10 bps.
Advancial Certificates are also offered as IRA CDs (Traditional, Roth, CESA), earning the same tiered APYs with the same deposit requirements.
According to CSR, the Early Withdrawal Penalty for the 4-year and 5-year Certificates is 354 days of dividends, with partial withdrawals permitted.
Funding and Accessing Maturing Funds
Certificates must be funded at the time of opening. CSR suggested the easiest (and fastest) way to fund a Certificate is through a transfer from an existing Advancial checking or savings account. Advancial participates in the CO-OP Shared Branch network, making the transfer of funds relatively easy. The other option would be to initiate a wire from an external financial institution.
Maturing funds can be distributed by check, wire ($15 fee), or transferred into an existing Advancial checking or savings account.
Dividends are compounded and credited monthly. Earned dividends can be withdrawn without penalty after they have been credited.
Beneficiaries
Unlimited beneficiaries can be named, with a Social Security number required for each beneficiary. According to CSR, beneficiaries can be listed on the online application, with no need for a separate form to be submitted. Percentages cannot be assigned; only equal shares are available.
Availability
Headquartered in Dallas, Texas, Advancial has a field of membership (FOM) that has changed a few times in the past four years. The FOM has alternated between an “easy membership requirement” (EMR) and a limited membership determined by residency or SEG relationship. I contacted Advancial hoping I would be told the EMR was back in place, but Advancial continues to be in non-EMR mode.
Employees/members of hundreds of SEGs qualify for membership. Advancial does not list any of the SEGs on its website, but the Online Membership Application does include a search field “to find your employer or association.” Most of the SEGs are companies related to the oil and gas industries and the health industry in the Dallas area. (If you type “oil” or “gas” in the search field of the online membership application, several companies do pop up.)
If you think you might qualify, the Membership Eligibility page states,
Still not sure if you qualify for an Advancial membership? Give us a call at 800.322.2709, and we will be happy to discuss an Advancial membership with you!
The other ways to join Advancial include,
Residency: Individuals who live, work, worship, or attend school in the Louisiana parishes of Acadia, Avoyelles, Evangeline, Iberia, Lafayette, St. Landry, St. Martin, or Vermillion are eligible to join. A new addition to the residency list is the greater Charlotte, North Carolina area.
Personal Relationship: Immediate family members and household members of individuals who qualify for membership through an SEG also qualify for membership. Immediate family is defined as spouse, significant other, parent, grandparent, brother, sister, grandchild, stepparent, stepchild, stepsibling, and adoptive relationships.
Joining Advancial and/or opening a Jumbo Certificate can be done online. The Membership Application is also available as a download and can be returned by mail. Advancial has ten full-service branch locations in Alaska (1), Louisiana (2), Oklahoma (1), and Texas (7 in the Dallas area and 2 in the Houston area).
Opening a savings account with a minimum deposit of just $5 establishes an Advancial membership.
Advancial participates in both the CO-OP Shared Branch and ATM networks, giving members access to more than 5,000 branches and nearly 30,000 surcharge-free ATMs nationwide.
Credit Union Overview
Advancial has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 5.67% (excellent) based on June 30, 2022 data. In the past year, Advancial has increased its total non-brokered deposits by $133.65 million, an excellent annual growth rate of 7.6%. Please refer to our financial overview of Advancial (NCUA Charter # 2285) for more details.
Chartered in 1937 as the Atlantic Federal Credit Union, Advancial is currently the 14th largest credit union based in Texas, with nearly 108,000 members and assets in excess of $2.1 billion. The original charter was issued by the Farm Credit Administration, an independent agency of the Executive Branch that was created in 1933. (If you’re wondering why a Texas-based credit union had “Atlantic” in its name, the original FOM included employees of the Atlantic Richland Company, better known as ARCO.) In 2001, the Credit Union rebranded as Advancial to better reflect its diverse membership.
How the 4-year Jumbo Certificate Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM, only one credit union has a higher rate than currently offered on the Advancial 4-year Jumbo Certificate, regardless of minimum deposit requirements. The following table compare the Advancial 4-year Jumbo Certificate to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
How the 5-year Jumbo Certificate Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM, only one credit union has a higher rate than currently offered on the Advancial 5-year Jumbo Certificate, regardless of minimum deposit requirements. The following table compare the Advancial 5-year Jumbo Certificate to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 10/6/2022.
To search for the best CD rates, both nationwide and state-specific, please refer to our CD rates table page.
