Advancial 4-Year and 5-Year Jumbo Certificates Are Rate Leaders
It’s been a year since my last Advancial blog post. While the 4-year and 5-year Jumbo Certificate APYs increased by more than 100 bps since early October 2022, Advancial’s somewhat narrow field of membership (at the time) limited interest in the Certificates. The current easy membership requirement (see “Availability” section below) has significantly increased the intrinsic value of the Advancial 4-year and 5-year Jumbo Certificate APYs.
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 10-11 bps.
NB: Advancial often updates its Certificate rates at the beginning of each month. So it is possible rates may soon fall, especially if there is strong nationwide demand for the long-term Certificates.
Advancial Certificates are also offered as IRA CDs (Traditional, Roth, CESA), earning the same tiered APYs with the same deposit requirements.
Early Withdrawal Penalty
The Truth-in-Savings (TIS) disclosure for Certificates is not available on the Advancial website, but CSR sent me a copy. As stated in the TIS, the Early Withdrawal Penalty reads as follows:
For Four and Five-Year Savings Certificates, the penalty will be equal to 365 days dividends when any amount of the principal is withdrawn. In addition, you will not receive any portion of the accrued dividends for the dividend period in which you make an early withdrawal from any Savings Certificate.
If the dividends in the Savings Certificate at the time of withdrawal are insufficient to pay the entire penalty assessed, the penalty will be assessed against principal.
Availability
Headquartered in Dallas, Texas, Advancial’s field of membership (FOM) 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.
Thanks to a very detailed Forum post about opening an Advancial Certificate and a CD Deals Summary comment by DA reader, Steve58, it appears Advancial is back in EMR mode.
1. I started a week ago by joining the US Dog Agility Association, and as part of the sign up process I selected this as my affiliation "United States Dog Agility Association, Inc. (TX0000)" - note only Texas organization. No cost and took minutes to do.
2. I then went onto the Advancial web site and applied for a joint savings account only. Type in "dog" when asking for membership affiliation and US Dog Agility Association will show up in the pull down.
In a Live Chat yesterday, I asked if any U.S citizen, regardless of where they live, was eligible for Advancial membership by joining the US Dog Agility Association (USDAA). CSR confirmed this EMR option in a slightly awkward but humorous reply.
You are welcome to live anywhere just as long as you are a part of the US Dog Agility Association.
That being said, based on Advancial’s history of changing the FOM multiple times, I’m not sure joining USDAA will always be a path to Advancial membership. In the past, Advancial CSRs stated that one must be an employee, not merely a member, of USDAA to join. Other times in the past, Advancial CSRs stated that USDAA membership could qualify if you’re joining Advancial to apply for a loan, but not a CD or savings product. If you’re not interested in opening an Advancial Certificate at the moment, joining Advancial now through USDAA is a great way to have a membership in place for any future hot Certificate deals.
The other ways to join Advancial include,
Select Employee Groups: 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.)
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. The newest addition to the residency list is the greater Charlotte, North Carolina area.
Family 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.
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!
Account Opening
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.
Funding and Other Details
The following information is from a Live Chat with CSR.
- Funding* – ACH, wire, shared branch transaction, or internal transfer.
- CO-OP Shared Branch Participant – Yes.
- Ownership – Individual or joint.
- Dividends – Compounded/credited monthly and can be paid out by check or transferred into an Advancial checking or savings account.
- Maturing Funds – Cashier’s check to address on file or transferred into an Advancial checking or savings account.
- Grace Period – 10 calendar days before automatic renewal.
- Beneficiaries – Unlimited, with equal shares; Social Security numbers are preferred but not required.
- Credit check – ChexSystems.
*CSR suggested the easiest (and quickest) way to fund a Certificate is through a transfer from an existing Advancial checking or savings account.
Credit Union Overview
Advancial has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 8.55% (excellent) based on June 30, 2023 data. In the past year, Advancial’s total non-brokered deposits decreased by $231.32 million, a poor annual growth rate of -12.22%. 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 16th largest credit union based in Texas, with more than 119,000 members and assets in excess of $2.3 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 5-year Jumbo Certificate Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $50k or less, no banks or credit unions have higher rates 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.
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 and have minimum deposit requirements of $50k or less, no banks or credit unions have higher rates 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.
The above information and rates are accurate as of 10/27/2023.
To search for the best CD rates, both nationwide and state-specific, please refer to our CD rates table page.
All that to say.....no one knows where rates are going, everyone, and I mean EVERYONE has a guess, but thats about it. A total GUESS! I locked in everything I had in 2018, and in all 5 year CDs. I 100% lucked out, I know that. The rates were good, i was comfortable with them, so i went for it. Take the rates as they come, if it looks good, go for it.
Oh....and.....LADDER AND IT WONT MATTER!
and....
it wont...
MATTER!!
You hear me!? LOUUUUD NOISSSSSSES!!
lol
But seriously...what you said is pure nonsense, but you know that. ;)
You cant just disappear! ugh
(In my case, if I can't list my living trust as beneficiary, I can't do business with them. In several contacts in advance, multiple CSRs said yes, no problem, I can list the living trust. But after some time it took to go through the process to join, the final processor called me ready to go -- except for one thing: I listed to have my living trust as beneficiay. She said Advancial changed it rules a few years ago to not allow a living trust or any other non-person as beneficiary. Without that, dang, a week of effort and now they change the story! I told them, then I can't do any business with you, and I was going to open the CD with a large amount. That was the end, they did not bend. I do not want to open an account in the name of the trust at this time.)
Do you of any other considerations?
Per membership eligibility it sounds like YMMV.
I gobbled that up last week!
Can you provide me a link to Ken's statement?.
Thanks
"NB: Advancial often updates its Certificate rates at the beginning of each month. So it is possible rates may soon fall, especially if there is strong nationwide demand for the long-term Certificates."
(please note that the NB notice is in boldface in Tumin's original article)
The link to the page where you posted your comment is
https://www.depositaccounts.com/banks/advancial-cu/offers/
I had the same problem with the DL pictures at another bank I opened up some CD's with 2 months ago & figured it out with this method ,So I did the same process with this bank & it worked when folks were saying the dl back would not take. .
First put your lic. on a dark background for the picture , then zoom in as close as you can & make sure to have a very steady hand ...no movement. I downloaded 3 different pictures ( front & back ) that way in my computer & cropped them to the edges & on the rear dl 2 did not take but the 1 that had a very still & clear picture worked..
I hope this helps.
Then scanned the front of DL and it wouldn't scan. So whatever I scanned (front or back of DL) in the lower box doesn't work.
Well that didn't last long...looks like APY for $25K-5yr CDs are 5.03%; while $50K CDs are 5.14%.
So much for "end of the month"... suppose just a few days after October month-end instead.
https://www.advancial.org/certificates2023/?utm_campaign=cuanywhere_log_off_ads&utm_medium=log_off&u...
go to their website & see the rates are still 5.29 (25k ) & 5.40 (50k) & at the bottom of the page is stated good from 11-1-2023 to 11-30-2023
O.K., then...guess they're still available.
Too bad the rates at that time sucked.
Not sure if I want as long as a five-year; although only funds I have now are IRA certificate money coming due soon. Maybe....
https://www.advancial.org/current-market-interest-rate/#certificates
Rates for Certificates, Money Markets, Savings, Checking, Loans, and Credit Cards
effective from 12/01/2023 through 12/31/2023.
Although it do also say, in fine print, at page bottom:
All rates are subject to change without prior notification.
Minor: during applicable process, drivers license back side did not load a few times on their site, but then I followed their instructions to place it on a darker surface with plenty of light and snapped a photo with my cellphone and it went through just fine.
I did call later to ask about beneficiaries. Whole account is covered by same set of beneficiaries. You can access and change them online easily once you know where to find that info (Manage Account, then Profile, then Beneficiaries subtab).
Everything has gone very smoothly so far with this credit union. Thank you for the deal post!!
Oh, 1 more note: I had to unfreeze Chex system and Experian before applying.
Someone tell me why I shouldn't be so pessimistic.
Should the rates of Advancial's competition not be affected by the FOMC action (or lack thereof), then odds are Advancial will also maintain their rates into the new year. But even if there's a drop, or increase — wouldn't that be a nice surprise! — I imagine, based on Advancial's relative constancy, it will be only slight.
That's my best optimistic outlook :-)
* Poor disclosure on website. EWP not on website. Truth in Savings document not on website. Ken had to call for both.
* Ken points out weird drop in deposits "total non-brokered deposits decreased... annual growth rate of -12.22%. "
* "field of membership (FOM) has changed a few times in the past four years."
* Tried "Dog Agility Association" Merely a free-to-join email list. Does this meet NCUA requirements for FOM?
* BBB complaints not resolved. Reply to most, even very old complaints, only that they are "reviewing" https://www.bbb.org/us/tx/dallas/profile/credit-union/advancial-federal-credit-union-0875-2000225/complaints
* Appears that main business may be high-risk. Hidden from their main website - wholesaling sub-prime loans, credit cards, and mortgages through brokers nationwide https://www.advancial.org/wholesale/
* CEO's LinkedIn profile shows no previous employment and implies that he has been CEO for 14 years, contradicted by info that comes up by googling. https://www.linkedin.com/in/brent-sheffield-a042a73/
* As part of a personal dispute with a local developer, CEO was arrested https://www.cutoday.info/Fresh-Today/CEO-Is-Arrested-Jailed-For-Stealing-Signs
Too many yellow flags.
If grades mean anything to you, Bauer gives them 4 stars (a recommendation), Weiss a "C"
(but they are always comparatively more stringent), and for DA they rate "B".
Good luck finding 5% plus long-term CD's at an FI descended from heaven.
BBB shows only 9 complaints in the last 3 years, and BBB gives them a BBB A+ rating. The complaints seem to be from borrowers rather than depositors.
2. Can't find the Federally-required "Truth in Savings" statement on the public website.
3. Contrary to popular belief, BBBs are local private companies that are franchised by a national company. BBBs are supported by the businesses that pay dues. BBBs give an "A+" rating to any business that responds to complaints, even if the response is a non-response - such as in this case, that they have been "reviewing" the complaint for years. BBBs are not non-profits.
When emailing them those sensitive application form, is there a secured way to do it?
Do they provide us a secured link so that we can upload the application form and ID safely?
Thanks for any suggestion.
Very frustrated with the process...
Very flexible options, should you have the luxury of being are able to plan ahead.
After having selected one of these modifications to your dividend payment, there would be no EWP.
(And you could always go back and alter your choice, any time in the future)
I can tell you, though, that last April I broke two Jumbo 60-month CDs there, from 2021 (earning 1.94% APY & 2.23% APY) . . . and with the remaining balances (after EWPs) reopened each at 4.61% APY. [Not knowing that a higher 5.40% APY was just around the corner— shortsighted me]
The penalties incurred encompassed the prior 365 days of posted interest. So I'm not telling you anything you didn't already know.
I would only add that, if you suspect you might be closing CDs for emergency use — in whole or in part — you could consider simultaneously opening multiple certificates of smaller amounts, so that you can readily close just one at a time, and not suffer penalties across your entire investment.
Also, having done the math in advance[cial], I figured the "upgrade" last April was worth the penalty; despite the loss, due to the higher APY, I'll surpass my breakeven point next year. And, as a bonus, I'm getting to deduct the loss on my 2024 taxes [as an "Adjustment to Income" per Turbo Tax].
Lastly, obi, I'm assuming you know that by adding beneficiaries you can increase the FDIC insured amount, in leaps of $250k per beneficiary — obviating your need to siphon off interest to stay below your current limit at Advancial, or at any of your other FIs.