AgFed Credit Union Brings Back 30-Month No Penalty CD

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Deal Summary: 30-month CD, 1.55% APY, Allows one penalty-free withdrawal

Availability: Easy membership requirement.

This week AgFed Credit Union brought back its 30-month No Penalty CD (1.55% APY). The rate is a little higher than the last time AgFed offered this special. Like before, it’s a “limited time offer” with a minimum deposit of $1k and no maximum balance cap. New money is required to open the CD. Dividends can be received quarterly.

The No Penalty CD allows the member to withdraw once without incurring a penalty. According to AgFed’s Truth-in-Savings Disclosure:

One withdrawal may be made during the original term of the certificate with no penalty imposed. Subsequent early withdrawals may be subject to a penalty as outlined in the Early Withdrawal Penalties disclosure.

If additional withdrawals are made, the following early withdrawal penalty applies:

If the certificate term is greater than 11 months but less than 60 months, the member shall forfeit an amount equal to the lesser of: (A) All dividends for 180 days on the amount withdrawn, or (B) All dividends on the amount withdrawn since the date of issuance or renewal.

For a 30-month term, the rate isn’t anything to get excited about, but the no-penalty feature makes it similar to a savings account. When compared to savings accounts, this No Penalty CD looks very attractive.

Thanks to DA Member, Cumulus, for his Forum posting on this CD.

Availability

AgFed Credit Union is headquartered in Alexandria, Virginia, and its field of membership is broad and diverse. You are eligible for membership if you meet any of the following prerequisites :

Residency: Any person who lives, works, worships, volunteers, attends school in, and any businesses and other legal entities in the District of Columbia.

Employment: Any current or retired employee of 60+ Select Employee Groups.

Family Relationship: Any person related by blood, adoption or marriage to a member (except relatives of members who have been expelled from the Credit Union).

Easy Membership: If you don’t qualify through any of the above methods, you can become a member of The Friends of the National Zoo or The Friends of the National Arboretum for $20 (one-time only, non-refundable dues), and be eligible for AgFed membership. Using AgFed’s online application allows you to join either association as part of the AgFed membership application process.

Joining AgFed and opening a CD can be done online, by mail or fax, by phone (800.368.3552), or at any of five branches located in Washington, D.C. (3), Riverdale, Maryland, and Alexandria, Virginia.

Credit Union Overview

AgFed Credit Union (NCUA Charter # 16400) has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 7.38% (excellent) based on September 30, 2016 data. In the past year, AgFed has increased its total deposits by $15.08 million, an excellent annual growth rate of 6.93%. Please refer to our financial overview of AgFed Credit Union for more details.

AgFed Credit Union (originally known as the Agriculture Federal Credit Union) was started by the United States Department of Agriculture and chartered by the NCUA in 1934. It has grown to over 23,000 members nationwide, with assets in excess of $279 million. AgFed is very involved in community non-profit organizations, actively participating in the Washington D.C.’s Bread for the City, Children’s Medical Center, and Habitat for Humanity.

How the CD Compares

Comparing AgFed’s 30-month No Penalty CD to other similar length-of-term CDs is misleading since other CDs don’t have the No Penalty feature. The highest 36-month CD rate that’s nationally available is 1.81% APY at EverBank. The highest savings account rate is 1.25% APY at PurePoint Financial. The EverBank CD term is 6 months longer and it has an early withdrawal penalty. PurePoint Financial savings account has no guarantee period for the rate. As can be seen, the 30-month No Penalty CD rate is in the middle of these two.

The above rates are accurate as of 3/3/2017.


Comments
jennifer
jennifer   |     |   Comment #1
Interesting. I wonder if you can withdraw everything from the certificate. Let's say you put in 200,000 and want to bring it down the zero or just one dollar after a few months. Sounds like you could.
matthewgast
matthewgast   |     |   Comment #5
Yes, but it sounds like it's only one early withdrawl. Given that there aren't tiers of membership, if I had $200k I wanted to put in CDs, I would open, say twenty $10k CDs so that I could close any number of them I needed at one point.
LuvCD
LuvCD   |     |   Comment #2
I several old IRA accounts with $1 in them...at other CUs
RickZ
RickZ   |     |   Comment #3
First, thanks Cumulus for posting this. I spoke with an AgFed CSR this morning. The one no penalty withdrawal allows you to either close the account entirely or keep it open with a minimum of a $1,000 balance. 

 A bigger issue, and one that we are all too familiar with from our dealings with Andrews CU, is that if you fund the CD with a check (branch, shared branch or mail) then AgFed requires that the funds first go into your share account where they have to sit until the hold is lifted. I was told that the minimum hold for new members is 4 days but I'm sure they will hold a large check for 10 days. They will not, as a matter of course, open the CD and transfer the hold to the CD. The CSR said you might be able to get management to make an exception and transfer the hold to the new CD but it's not assured. Therefore, if investing a large amount, a wire transfer is the only way to go -- ACH transfers may also work for some people but for me Alliant limits my outgoing ACH transfers to $25K per day. I therefore have to add $20 for the charity and $25 for the wire fee to my costs. Still, overall, worth considering.
Ann
Ann   |     |   Comment #10
FWIW IIRC, someone signing up for the Andrews 3% CD a few weeks ago reported that they don't handle it like that anymore at Andrews; they let you move the money into a CD right away and transfer the remaining hold time to the CD account (in other words, you just couldn't do a highly-premature withdrawal from the CD till the hold clears).
matthewgast
matthewgast   |     |   Comment #4
The membership section needs updating. AgFed no longer lets you join an association at the time you establish membership.

The Friends of the National Zoo is now $50; Friends of the National Arboretum is $35. Members of the Smithsonian (annual $25 membership) appears to be the cheapest way to join now.
matthewgast
matthewgast   |     |   Comment #7
One update - apparently, membership at the Smithsonian doesn't count. Friends of the National Zoo is how you can join.
outtempster
outtempster   |     |   Comment #6
Does this CU often has good saving rate or CD rate, and worth the trouble to open a new account and maintain it? don't want to end up the situation to open the CD, then a much better one come out, withdraw and never this this CU again :)
matthewgast
matthewgast   |     |   Comment #8
I think it's worth it to have CU memberships available when they run rates. I had established membership at Andrews for their chip & PIN credit card a couple of years ago, so when they ran their 3-month CD special at 3%, I just transferred in a bunch of money and opened online. I keep my CU memberships active by pushing a dollar with ACH, then retrieving it back a few days later. Ally, Cap One, and Alliant are all good ways to "tickle" an account and keep it alive.
Ann
Ann   |     |   Comment #11
Yes, that's what I've been doing with Chase to keep other accounts active. I send $1 annually, and pull it back annually-but-6-months-offest.
jennifer
jennifer   |     |   Comment #9
What about taking the money out in the middle of a quarter? If they only pay interest quarterly i wonder if they will prorate it.
matthewgast
matthewgast   |     |   Comment #12
My experience with other banks and no-penalty CDs is that they calculate interest either as a daily balance (so a partial withdrawl just lowers the average balance), or if you completely close a CD, they will calculate interest to the day that you close it. The latter is one reason why closing a no-penalty CD early sometimes takes a day or two to get the money, because the bank needs to figure out the final interest payment.
Kaight
Kaight   |     |   Comment #13
This deal is like finding money in the street. Who need PurePoint when these guys are paying 30 basis points more and when, unlike with PurePoint, AgFed is locking your rate for the next THIRTY months!! This deal is the dictionary definition of "No Brainer"!
cumulus
cumulus   |     |   Comment #14
AgFed removed this 30 month 1.55% APY no-penalty CD from its' website today :(
Kaight
Kaight   |     |   Comment #15
Thank you for posting. Elvis has left the building. Sad.  There is nothing else out there like this (formerly) great deal.  Not right now, anyway.
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