AFFCU 2-Year CD Is A National Rate Leader
DA readers who follow the bi-weekly CD Rates Summary may have noticed the 2-year national category has a new leader: the 2-year Share Certificate offered by AFFCU (the former Air Force Federal Credit Union). With a top rate of 2.30% APY ($100k), the 2-year Share Certificate rose to the top not because of a rate increase, but because XCEL FCU’s 24-month Promo CD is no longer available and Advancial’s 2-year Jumbo CD rate fell.
The last time I wrote about AFFCU Share Certificates five different deposit tiers offered the same APY. AFFCU has apparently gone back to tiered APYs based on five deposit levels.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 0.55*% | $1k | - | AFFCU | 2 Year Share Certificate | |
| 0.55*% | $1k | - | AFFCU | 2 Year IRA Share Certificate (Traditional, Roth) |
AFFCU Share Certificates are also available as IRAs (Traditional, Roth, and CESA), earning the same tiered APYs with the same funding requirements.
As stated in the Truth-in-Savings Account Disclosure (part of the online application), the Early Withdrawal Penalty reads as follows:
The penalty we may impose will equal one half of the dividends that would accrue from the date of the withdrawal to the maturity date applying the contracted rate on the certificate based to the amount withdrawn over and above any dividends credited or accrued to the certificate to date of withdrawal.
AFFCU’s Member Rewards program lets you “earn more money on your certificate,” with an additional 10 or 20 bps applied when opening a certificate.
If you have an AFFCU loan AND checking account with direct deposit – receive a 20 basis point bonus reward.
If you have an AFFCU loan OR checking account with direct deposit – receive a 10 basis point bonus reward.
Funding and Accessing Maturing Funds
According to CSR, the easiest way to fund a Share Certificate is through a transfer from an AFFCU Share Savings account. (AFFCU participates in the CO-OP Shared Branch network, which is a relatively simple way to transfer funds.) Other funding options include ACH and wire transfers. Maturing funds can be distributed by cashier’s checking or transferred into an existing AFFCU checking or savings account. There is a 10-day grace period before renewal.
In the event that the maturity date passes without the Term Share Certificate Account being renewed and the Certificate is not presented for payment on the maturity date, we may, at our option, transfer the funds in the Certificate Account to any Share (Savings) Account you have with us or any other Account of yours or, alternatively, pay the funds in the Certificate Account directly to you.
Availability
Headquartered in San Antonio, Texas, Air Force Federal Credit Union's field of membership (FOM) was primarily comprised of military and civilian employees of the Department of Defense, but membership is now open to all U.S. residents through the Airman Heritage Foundation.
The Airman Heritage Foundation supports the USAF Airman Heritage Museum and other heritage-related activities in preserving and honoring the history and heritage of enlisted airmen.
The last option on the Eligibility page of the online application reads,
Don’t qualify for any of above options? You may choose to join the Airman Heritage Foundation, with a $25 Airman Heritage Foundation membership, therefor making you eligible for AFFCU membership.
Employees, volunteers, and members of more than 75 organizations and companies also qualify for membership. (AFFCU lists membership eligibility criteria only on its time-sensitive online application, so I have not included a link.)
The first four options on the membership application list Department of Defense related eligibility requirements in Arkansas, Louisiana, Mississippi, Oklahoma, and Texas. They include:
- Active duty, reservist, or National Guard and assigned to, stationed at, or working at a United States Government installation, facility, or unit in AR, LA, MS, OK, or TX.
- Honorably discharged veteran residing in AR, LA, MS, OK, or TX.
- Civilian/government employee assigned to, stationed at, or working at a United States Government installation, facility, or unit in AR, LA, MS, OK, or TX.
- A student at a U.S. military academy or U.S. active duty military personnel enrolled in an Officer Candidate program located in AR, LA, MS, OK, or TX.
Family members or anyone who resides in the household of a membership-eligible individual also qualify for AFFCU membership.
Joining AFFCU and/or opening a Share Certificate can be done online or at any of nine Texas branches located in Del Rio, San Antonio (7), and Schertz.
A $5.00 opening deposit into your AFFCU Savings Account establishes your lifetime membership and gives you a share of ownership.
AFFCU participates in both the CO-OP Share Branch and ATM networks.
Credit Union Overview
AFFCU has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 6.63% (excellent) based on September 30, 2019 data. In the past year, AFFCU has increased its total non-brokered deposits by $11.23 million, an above average annual growth rate of 2.91%. Please refer to our financial overview of AFFCU (NCUA Charter # 8169) for more details.
Established in 1952, Air Force Federal Credit Union takes pride in "being built from the ground up by Airmen volunteers." With nearly 51,000 members and assets in excess of $461 million, AFFCU has been named "Credit Union of the Year" (less than $1 billion in assets category) by the United States Air Force in 1996 and 2013.
How the Share Certificate Compares
When compared to 228 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, Air Force Federal Credit Union’s 2-Year Share Certificate APY currently ranks first, regardless of minimum deposit requirements.
The above rates are accurate as of 2/15/2020.
To look for the best CD rates, both nationwide and in your state, please refer to our CD Rates Table page.
