For a limited time, AEA Federal Credit Union (AEA FCU) is offering a 30-month Share Certificate Special. The base rate is 3.25% APY, with a bonus 25 bps added with a new checking account relationship. The minimum opening deposit $1k of new money, defined as funds “not currently deposit with AEA."
The 30-month Share Certificate Special is offered as an IRA (Traditional and Roth), earning the same APYs, with the same funding requirements and new checking relationships.
While there is no stated end date, the landing page presents the Share Certificate Special as a “Spring Certificate Special,” suggesting it may last for a couple of months.
As stated in the Truth in Savings document, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity of more than 365 days:
The penalty we may impose will equal 180 days dividends on the current balance of the certificate. This may include part of your principal deposit.
Note: Partial withdrawals are not allowed: withdrawals must be for the full balance of the Certificate, resulting in its closure.
AEA FCU has two checking accounts in its product line: Advantage Checking (0.01% APY) and Basic Checking (a non-interest bearing account). The checking account must remain open for the complete certificate term. The APY will revert to the “lower promotional rate if the checking account is closed for the share certificate maturity date.”
At this point, I would normally describe AEFCU’s two checking accounts, but both checking accounts have definite drawbacks. The Advantage Checking has a non-waivable $7 monthly service fee, which means a minimum deposit of about $32k in the 30-month Certificate would be required to break even.
- $32,000 x 3.50% APY = $2,873.93 interest
- $32,000 x 3.25% APY = $2,663.72 interest
The difference between the two amounts is $210.21, equal to thirty months of the $7 monthly service fee.
The Basic Checking $5 monthly service fee is waivable with a monthly direct deposit requirement, AND either 30 signature-based debit transactions per month or a minimum of $15k in loan balances. The minimum deposit in the Share Certificate Special needed to balance out thirty months of the $5 service fee is $23k.
Headquartered in Yuma, Arizona, AEA Federal Credit Union’s field of membership (FOM) is primarily residency based, with U.S. residents who live, work, worship, or attend school in the Arizona counties of La Paz or Yuma eligible to join.
Family and household members of current AEA FCU members also qualify membership.
Joining the AEA FCU and/or opening a Share Certificate Special can be done at any of the five Arizona branches located in Parker, Somerton, and Yuma (3).
Opening a Primary Share Savings Account with a deposit of $25 of more is required when establishing a new membership. There is also a one-time membership establishment fee of $5.
AEA FCU participates in the CO-OP Shared Branch program.
With shared branching, AEA members can visit over 5,000+ shared branches across the United States to do their banking. Need to deposit a check? Make a loan payment? Transfer funds? You can do all that and more at any Shared Branch location.
Credit Union Overview
AEA Federal Credit Unionfinancial overview of AEA Federal Credit Union > (NCUA Charter # 4915) for more details.
Established in 1942 with seven founding members and $35 in deposits, AEA Federal Credit Union's original FOM included public school employees in Yuma County, Arizona. A quick glance at the “health grade” detailed above isn’t that impressive, but AEA FCU belongs to the “Survivors Club” – a very small group of credit unions that have been released from conservatorship.
A June 2016 article in Credit Union Times stated,
For the tiny handful that have convinced regulators in recent years to give them a second chance and release them from conservatorship, Independence Day takes on a whole new meaning. After about five years in conservatorship, the NCUA returned control of the Yuma, Arizona-based credit union to its members on December 18, 2015.
Three years after its “Independence Day”, AEA FCU is currently Arizona’s 14th largest credit union, with more than 31,700 members and assets in excess of $247 million.
How the Share Certificate Special Compares
When compared to 195 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available within the FOM, AEA Federal Credit Union's 30-month Share Certificate Special APYs currently rank first and second.
The above rates are accurate as of 4/8/2019.
To look for the best CD rates, both nationwide in state specific, please refer to our CD Rates Table page.