Andrews FCU Extends Black Friday CD Deals Through 12/31/2016


UPDATE 12/1/16: The Black Friday CD deals have become "Holiday" CD deals, and are extended through December 12/31/2016.

Availability: Easy membership requirement

On Monday, DA reader and contributor, ChasR, posted about Andrews Federal Credit Union (Andrews FCU) Black Friday Share Certificate deals, which are available now through November 30 December 31, 2016: 3-month Share Certificate (3.01% APY), 18-month Share Certificate (1.81% APY), and 84-month Share Certificate (3.01% APY).

The minimum opening deposit is $1k and the minimum balance to earn the stated APYs is $1k. Dividends are compounded and credited quarterly.

As stated in Andrews FCU's Truth In Savings document, the Early Withdrawal Penalty reads as follows:

If your account has an original maturity date of less than 24 months, we will charge a penalty equal to 90 days of dividends.
If your account has an original maturity date of more than 24 months, we will charge a penalty equal to 180 days of dividends.

Those are the facts, as gathered from Andrews FCU’s website and a conversation with CSR. That being said, if any of these Black Friday deals “calls out your name”, reading the comments to ChasR’s Forum post may be beneficial. The information I post represents a theoretical best-case scenario, and as we all know from personal experience, that’s not always what happens. If you open one of these Share Certificates, feel free to share your experience.


Headquartered in Suitland, Maryland, Andrews Federal Credit Union offers membership through a variety of ways.

Easy Membership Requirement - Members of the American Consumer Council (ACC) are eligible to join Andrews FCU. (Note: Andrews FCU's online application asks for your ACC membership number. In other words, you must join ACC prior to joining Andrews FCU.)

Residency - Individuals who live, work, worship, or attend school in Washington, D.C. qualify for membership.

Military Relationship - Civilian and military personnel of Joint Base Andrews, Joint Base McGuire-Dix-Lakehurst, and military installations in central Germany, Belgium, and The Netherlands are also eligible to join.

Employment/Association - More than 200 groups in Maryland, New Jersey, and Virginia offer Andrews Federal Credit Union membership as a benefit.

Family Membership - Immediate family members (spouse, child, sibling, parent, grandparent, or grandchild) of an existing member, or household members of an existing member are eligible to join.

Joining Andrews FCU can be done online, or at any of nine U.S. branches located in Maryland (3), New Jersey (3), Virginia, and the District of Columbia (2). Andrews FCU also has branches associated with military bases in Germany, The Netherlands, and Belgium.

Opening any of these CD cannot be done online. As stated in the Black Friday Terms on the promotion page,

Offer not available online; must visit an Andrews branch location or speak
with an Andrews telephone representative to open share certificate account.

Credit Union Overview

Andrews Federal Credit Union (NCUA Charter # 5754) has an overall health grade of "A+" at, with a Texas ratio of 2.40% (excellent), based on June 30, 2016 data. In the past year, Andrews FCU increased its total deposit by $69.92 million, an excellent annual growth rate of 8.18%. Please refer to our financial overview of Andrews Federal Credit Union for more details.

Andrews Federal Credit Union was established in 1948, when eight individuals each deposited $5 to form a credit union that would address the personal financial needs of military and civilian personnel at Andrews Air Force Base. Today, Andrews FCU is Maryland’s 5th largest credit and the 221st largest credit union in the country, with more than 119,400 members and assets in excess of $1.1 billion.

How the Black Friday Promotions Compare

When compared to the 125 similar length-of-term CDs tracked by that require a similar minimum deposit and are nationally available, Andrews Federal Credit Union's 3-month Share Certificate APY has no competition.

When compared to the 144 similar length-of-term CDs tracked by that require a similar minimum deposit and are nationally available, Andrews Federal Credit Union's 18-month Share Certificate APY currently ranks first.

When compared to the 30 6+-year CDs tracked by that require a similar minimum deposit and are nationally available, Andrews Federal Credit Union's 84-month Share Certificate APY currently ranks first, regardless of term length.

The above rates are accurate as of 11/9/2016.

To search for the best CD rates, both nationwide and state specific, please refer to the CD rates section of or our Rates Map page.

Anonymous   |     |   Comment #1
Regarding the 7-year CD at 3% only, now given knowledge of Trump's victory, in the immortal words of Admiral Ackbar:
Bozo   |     |   Comment #2
Too funny. A "trap" perhaps, but I have been laddering CDs for over 10 years (thank you Ken Tumin), and each time I think locking into a 5-year+ CD is a "trap", only to find out five years later, rates were lower.
kmorse   |     |   Comment #123
I opened one for 84 months.  If the rates ever reach 5% the withdrawal penalty will be worth it. What have I got to loose?  Rates would go up 2 points in two years.  Not a chance.
Anonymous   |     |   Comment #124
If they go to 5% the cu will cease allowing early withdrawals
tck   |     |   Comment #128
More likely that they will just raise the EWP. 
Anonymous   |     |   Comment #129
And, in either case...situation could/would then be insolvency if one can't pay timely debts...get ready to have a "run" then.
decades   |     |   Comment #6
not a trap because the withdraw penalty is only 6 months ...rates go up .fine ...rates don't go up ...enjoy the 3.01%
Anonymous   |     |   Comment #7
As we've seen several times already the withdraw penalty can be changed retroactively and the regulators aren't going to do a da*n thing about it.
Anonymous   |     |   Comment #10
Good thinking. Guess I'll open one.
Bozo   |     |   Comment #13
I must say, the Andrews rate on the 84-month continues to amaze. Where the credit union finds a place to lend the money at a profit is a source of further amazement.
Anonymous   |     |   Comment #19
Guess they are the new Penfed. In the past they offered rates that were far above other institutions.
decades   |     |   Comment #35
penfed..northwest fcu ..agricultural fcu ..Andrews fcu ...notice a pattern here ...these are dc beltway area credit unions... a prosperous area..where our federal tax dollars flow brother lives in the middle of this in Cherrydale Va.... people there have elegant stone fences  with white lucky stones embedded on the top .. the white stones have to be polished from time to time by cheap labor.  
Anonymous   |     |   Comment #44
Spot on and thumb up.  I'm a member of all those credit unions you mentioned, and a few other DC region CUs as well.  We're rate chasers.  We go where the high interest rates are!
Anonymous   |     |   Comment #3
Opened the 7 year 3.01 APY IRA account. It went fairly smooth. If you decide to open this account, save time and ask for the IRA department when you call them.
Anonymous   |     |   Comment #4
Interested for : 3-month Share Certificate (3.01% APY); how easy is it to open (from Houston)?
Anonymous   |     |   Comment #5
Shouldn't you be"more" concerned about how to get your funds out after maturity?
Anonymous   |     |   Comment #9
Not at all. You can ask them to dump the funds into your savings account on maturity and use our bank (I use Ally) to ACH the funds back to you.
Anonymous   |     |   Comment #8
No problem at all. I opened my from California.
Anonymous   |     |   Comment #11
Opened a 3 month CD via phone from FL.  Took check to local shared branching C U and funded account that way.  Customer service representative Claudia was super helpful, staying on the phone with me throughout the process, including setting up online access and electronically returning signature card etc.  Couldn't have asked for a better or more helpful CSR. Cudos to AFCU and the reps I spoke to from my initial inquiry thru completion.. 
Anonymous   |     |   Comment #12
Tried to open a CD via phone.  No way to get a rep.  Wished they had on line application. Wish they had an option to talk to a rep.
Anonymous   |     |   Comment #15
I applied to join and open a share savings account online, no problem.  I had to upload a copy of my social security card and driver's license to them as well.  Once it's open, I will wire in funds and call them to open a CD.  No problem talking to a rep on the phone either.  I even spoke to their online banking tech support.  Everything seems fine.
slacker (anonymous)   |     |   Comment #14
Opened mine today was a very long process but after a few hours a trip to a shared branch 3 calls to andrews finally got everything in place , online will not allow you to open the cd because funds have not yet cleared but by calling in you can get a CSR to open the cd and fund it of course with a hold on it but it starts earning interest right away on the cd rates while the check is on hold and within the hour the cd shows up in your online account now all this happens after you open a share account get a online banking account and get approved which took for me at least 5 hours for them to get around approving me after the online application..once I was approved I went to a shared branch and deposited my check for the cd from there.. In the application to open this account I used a direct pull from my checking account which is limited to 1,005.00 dollars hence the need to go to the shared branch to deposit a check you can mail one in but who knows how long that will take, so all in all not the wrost place i've opened an account but surely not one of the best either , they could of streamline the process awhole lot better but where else can you get 3.01% so I suffered through it..............
Anonymous   |     |   Comment #16
Where there is a will, there is a way.  Sometimes it just takes a little extra effort. 
Sylvia   |     |   Comment #17
#14 (slacker), I’ve gotten conflicting info on check holds.  One rep said hold could be transferred, allowing CD to be opened with newly deposited check.  In a follow-up call, I heard CD could not be opened until hold expired on check, which was similar to what I was told a few months ago.  Could you provide more details on how you got Andrews to open CD with fresh check?
slacker (anonymous)   |     |   Comment #18
#17 sylvia , to answer your question the check was forwarded from my local shared branch at about 1:30 central time today once i got home the money was in my shared account of course on a hold so i called them and had them open my cd and fund it from the share account balance even those those funds were on hold and within an hour the cd was on my account and funded with the held check and is earning interest right now with a maturity date of 11-10-23 on the cd..

   So once you fund your account don't take no for an answer ask for their boss not all CSR are trained equally , besides in all three of my calls each rep said it could be opened that way , you just got a undertrained rep on your last call in....
Sylvia   |     |   Comment #21
#18 slacker, thank you for getting back to me.  What you described is the way it usually works at other CUs.  However, check holds have been a source of complaints on Andrews, here and on other sites.  I did ask the last rep to confirm with her superiors.  After a long hold, she came back and repeated the no-transferring-of-check-holds policy.  Maybe her superiors are just as undertrained or she didn’t bother inquiring.  I’m glad it worked out for you, albeit after some legwork.  I will try again after they re-open next week.
Anonymous   |     |   Comment #23

The same sort of thing was happening at Consumers (CCU).  Even the supervisors did not have ability to move funds on hold, and they were unaware it was possible to do so!

These credit unions need to get their acts together PRONTO!!  Right now too many of them are FUBAR.
Sylvia   |     |   Comment #24
#23, thanks for commiserating.  Normally, I avoid the FUBARs.  In this case, the rates, EWP and record of good recurring promos got the best of me … well, those, and my greed.  The answer I received on the posting of interest also sounded odd.  I asked if it was done at end of quarter or beginning of next, e.g., 12/31/16 or 1/1/17 for Q4 2016.  I was told neither; it’s done on a quarterly basis following CD opening.  If CD was opened today, first interest would be posted 3 months hence, so unconventional as to make me question accuracy of answer.  Anyone with actual experience on how this CU posts interest?
Anonymous   |     |   Comment #38
Sylvia - In my case, I opened an 84 month IRA CD  on 9/14/2016. Interest for 14 days was posted on 9/30/2016 and no interest has been posted since. So, I assume that the interest will be paid/posted on a quarterly calendar year basis, the first full quarter being on 12/31/2016. We shall see.
Sylvia   |     |   Comment #41
#38, that makes more sense.  I appreciate your input.  With good folks like yourself, DA is a more reliable source of info than Andrews' own reps!
Anonymous   |     |   Comment #42
#38, thank you.  OK, so let's take a gander at that outcome:

Interest should be paid from day of deposit, up to but not including "day of maturity".  There was no maturity, but let's say you received no interest for September 30 and go with that.  So there are 29 interest-paying days remaining in September, but you missed out on 13 of those days because your account was not open until the fourteenth day of the month.  Doing the math:

29 minus 13 equals 16 days of interest that you should have earned

And they paid you interest for fourteen days.  That was very big of them!
Anonymous   |     |   Comment #43
#38 - Thanks for catching my error. What I should have said was that Andrews paid/posted interest through 9/30/2016, which is 16 days, not 14. When I answered Sylvia, I simply was in a hurry and made a mistake in the number of days. Bottom line though, is that Andrews paid me all that I had coming and I expect they will pay me all that I have coming on a quarterly calendar year basis for the life of the CD....and if you still have a problem with the math, don't fault Andrews, fault me. Cheers.
Anonymous   |     |   Comment #20
Seems a little ridiculous that you can't do this on line. I have to join the CU and have to wait for approval. The rep said I can mail a check to fund the CD.
Sylvia   |     |   Comment #22
Joining the CU can happen quickly if you answer the identity verification questions correctly and upload requested document(s) right away.  If you plan to use a check, better to deposit at shared branch, if there's one close to you, to avoid delays caused by mail.
Bozo   |     |   Comment #25
To Sylvia (and others). Well, I had a choice, A custodian-to-custodian transfer of my $262K IRA CD from USAA to Andrews (at 7-years, 3.01%) or Patelco (5-years, 1.95%). 106 bps being somewhat meaningful, I checked the Andrews website. Poof, the 7-year IRA CD had disappeared. So, I called the telephone number provided. After a bit on hold, the CSR said she didn't have a clue. That did cause me some concern. A day later, the 7-year reappeared, at the 3.01% rate. By now, I was getting more than a bit paranoid. If they are so disorganized that they lose a CD, what happens when they lose my money? Eventually, I bit the bullet and went with Patelco.  At a certain age, and I'm pushing 70, return "of" capital is more important than return "on" capital.

If Patelco messes things up, it's a five minute drive to the local branch. If Andrews messes things up, it's more complicated.
Bozo   |     |   Comment #26
While I never put all my eggs in one basket, I do tend to watch every basket.
Anonymous   |     |   Comment #27
Bozo...what's the rationale for accepting lower rate...see a 2 years delta?
Sylvia   |     |   Comment #29
Bozo, in this rate environment, readers of DA do not readily give up 106 bps without a fight, at any age.  We may need to check your credentials ...
Bozo   |     |   Comment #36
Sylvia, it was a struggle. The tipping point was when the CSR at Andrews could neither confirm nor deny the availability of the 7-year at 3.01%, when it fell off their website. I figured if they were that ****ed up, I'd keep my money closer to home. Custodian-to-custodian transfers of IRA CDs are complicated enough. At my age, return "of" principal is as important as return "on" principal. I was not confident that Andrews would be a good shepherd of my IRA CD.

I can accept a 106 bps "delta". I doubt I would be willing to accept a credit union losing $262K.
Anonymous   |     |   Comment #40
If you want an IRA or have IRA questions from Andrews CU, call Crystal at 301-702-5492 direct. She is one of their IRA specialist. I pretty sure all she handles is IRA's. This is a pretty high rated Credit Union along with your money being protected by NCUA. They also have been around along time.

I opened a large IRA with them. From start to finish was about a week.
Anonymous   |     |   Comment #31
In my case I answered the questions correctly. My application to join is being reviewed. We do have credit freezes which causes problem s with some banks. It would be easier funding with ACH.
Sylvia   |     |   Comment #32
They were closed Friday.  That will likely affect response time on any application submitted from late Thursday through early next week as part of the process appears manual.
Anonymous   |     |   Comment #37
Mailing a check takes 2 days rather mail than drive to a CU and wait in line. I'll lose a few days of interest no big deal. I also do not have a local branch of any CU I'm a member of. My limited free time is important. I also don't want to jump through hoops. Once the application is approved. I'll see how the process is. If I don't like it I'll bank elsewhere. Alliance credit union wanted Me to drive 25 miles each way to prove my identity and took a week to tell me this and after calling to follow up The trip also involved paying a $5 and about 2 hours of my time. Just skipped it. It's up to each person how much time and/or hassle they are willing to go through.
Anonymous   |     |   Comment #28
Opened acct online. Joint acct. Agree, lots of emails, and filling in the application does take time.
Question:  Anyone try opening an account with titled,  "in a TRUST".
                 When filling out the application, seems my choices were limited to single or joint.
Also, once everything is finalized, my plan is to wire my funds from Alliant C.U. to Andrews.
Alliant CSR, said it would cost $25 and a form would have to be filled out in person or mailed in.
According to the Andrew CU, wire funds, are available the following business day if received before a certain "time". (forgot the time, but read it on there paperwork).
slacker (anonymous)   |     |   Comment #30
# 28 , opened my account yesterday once i was approved they e-mailed me a copy of the application and a signature card on that signature card page it had a section for a P O D for up to three people hope that helps you out........
Anonymous   |     |   Comment #33
can anyone provide me a referal to get the $50 bonus for themselves and $50 bonus for me as well for new account.
RickZ   |     |   Comment #34
I am a current member of Andrews and could provide a referral. I assume you read all the fine print for the $50 bonus: you have to open a checking account (can be free checking account) and make direct deposits of $500 or more for two consecutive months, the first one within 30 days of account opening.  If you can qualify for the bonus and still want a referral, please let me know.
Anonymous   |     |   Comment #39
This is Sunday.  I decided to see if an online app would work today.  Yes, the app went through and as Slacker said,  the app & signature card were e-mailed to me right away.  I faxed those 2 items to General Membership.  My plans are to open the Savings Acct & as soon as I receive an acct #, I will ACH my funds to the savings acct then call & have them open the 3Mo 3.01% CD.  Hope it works out as I described.
Anonymous   |     |   Comment #45
Also noticed on the fine print, monthly $5 service charge if no activity during the year.  My plan, get the free checking acct, with debit card, and buy something
once or twice each year. ie. cup of coffee, etc...
Will have to call Andrew CSR before I wire my funds.  This site very helpful.
Answers a lot of questions. Still best to verify.
Anonymous   |     |   Comment #46
Soooooo, if one has a $250k cd for 5 years and with nominal $5 in member share account what are they expected to do?  Absurd 
Anonymous   |     |   Comment #47

Nothing can be taken for granted.  But that sounds like a routine inactivity fee to me.  Such fees are oftentimes waived when member owns a CD awaiting maturity.  You have to ask because all financial institutions have different rules.  Still, most likely not a deal breaker IMO.
Anonymous   |     |   Comment #48
Some must like baggage fees, too!
slacker (anonymous)   |     |   Comment #49
# 45,  the 5 dollar fee is on each account meaning 5 dollars on share account and 5 dollars on checking account which means you still need to use the share account so no need for the checking account , myself i was going to link a checking account and just move a fee cents back and forth as needed from my outside checking account to the share account......
Anonymous   |     |   Comment #50
What does one do "to have activity" for a share account with only $5 in it?
Sylvia   |     |   Comment #51
#50, make a nominal deposit.  The next time, you can withdraw that amount, if you wish.  Balance cannot drop below $5.  
slacker (anonymous)   |     |   Comment #52
Got a pleasent suprise today got a letter from andrews saying they were picking up the 5 bucks to join ACC even though i had used the word consumer in the coupon code section there to get membership for free , and yes i went and checked the share account at andrews and the 5 bucks was already deposited....
Sylvia   |     |   Comment #53
I got my CD opened today with a check deposited at a shared branch.  The journey sped up yesterday after I called Andrews’ member advocate, and chanced upon the Director of Sales and Service.  On my behalf, she spoke with contact center management and confirmed that the hold policy was a non-issue.  Returning home after dropping off my check earlier today, I went online to discover my CD already opened and funded!  I also got a call from Director of Contact Center confirming its opening.

Props to both for their listening skills and follow through.  I’m impressed.  Their actions bespeak a management that’s eager to earn and retain business, one customer at a time.

For anyone possibly feeling stuck in the call center quagmire, as I did, I was told by Director of Contact Center that I could have requested to speak with a floor supervisor.
Anonymous   |     |   Comment #54
FYI. Called Andrew's CSR today. Ready to wire funds from Alliant CU. (Calif) to Andrews. Just verifying my information.
1. Opened my account. Joint. CSR,said her computer show's I opened membership, as single.
2. Told CSR, per application instructions, I mailed in, last friday, "Membership application and signature card", which included my wife as joint, and was filled in my Anderson's own website.
3. CSR said maybe when they receive the mailed in form, Anderson will fix. or I will have to mail a new form.
4.Concern. If I open the CD while the acct. still shows, single owner, then add wife later as joint, will the CD be subject to EWP?  CSR said NO.
5. Asked about Trust membership. CSR, said available, but not advertised online. CSR can mail
me the Trust application.
6. Asked CSR, if I open CDs. in either single or joint ownership, then mail in Trust documents, will the CD's be subject to EWP?  CSR said NO. I remember reading somewhere, a "poster" said when they changed ownership, (change the name), they would be subject to EWP on a CD.
7. May have to forgo the Trust ownership.....may try and wait to my account is at least recorded as joint before I open the CD.....

Anonymous   |     |   Comment #55
does anyone know from experience if this is true ?  i asked a rep if there are any andrews ach limits if my External bank/cu initiates a request to deposit or withdraw funds from my andrews share/savings account. the answer was: there is no limit for deposits, but there is a 1k daily limit for withdrawals. this sounds strange that Andrews would allow 5k limit if they initiate & yet only 1k limit if the external bank/cu initiates ?
i'm not a member of andrews yet, but i'm concerned because of my experience with xcel fcu.  before joining xcel, i was told there were no ach limits for deposits or withdrawals if the External bank/cu initiated the transfer. yet when i decided not to renew my cd, i was told there was a 2500 daily limit even if my External bank/cu requested the withdrawal, and that i would have to pay for a wire to get more than 2500 daily, which i reluctantly did.    
Anonymous   |     |   Comment #56
I dunno the answer to your question.  I wish I did know.  I agree with you that such a limitation would be a REALLY big deal, a significant negative, and a very twentieth century rule.
Sylvia   |     |   Comment #58
#55, I believe, in general, place where you initiate ACH is one that calls the shots on transaction.  You may be dealing or dealt with misinformed reps.  They seem to be everywhere <sigh>.
Anonymous   |     |   Comment #59
#55....personally I would like to zero for outgoing w/o prior approval!  Think about easy for one to make an ach from your checking..all is needed is your account no. printed on all your checks and the ach which is also on ALL your checks!
Anonymous   |     |   Comment #57
My experience with Andrews' phone reps (and supervisors) is that they are largely clueless, - can look up your balance and that's about it.  Like they just came in off the street.

It's exasperating.

I could list a dozen (to me) pretty basic questions about their CD's that they all took a stab at answering, but with no consistency.

How do you make a decision in such circumstances?
Anonymous   |     |   Comment #60
Call in to one of their branches.
Anonymous   |     |   Comment #61
Is it Hard/soft pull?
Credit card funding?
Anonymous   |     |   Comment #63
I can confirm that they do a hard pull (hard credit inquiry) from, at least, TransUnion.  I requested a checking account, so maybe had I only requested the basic $5 share account and no checking, there would have been no hard pull. Not a big deal for me - just FYI.
Anonymous   |     |   Comment #62
My acct is open!  Procedure was pretty easy, even though I am always in a rush to see completion.  I filled out the online application 11/13/16, & received an e-mail copy the same day.  I signed the signature card & faxed the 2 sheets to Andrews FCU.  I called the next day to see if they received everything. (that is where I ran into a glitch)  The phone call hold takes to much time, but I persevered.  If everything is correct, they start the e-mails of  which you must respond.  After the 3rd email today, I was able to log into my acct.  I just completed the process to ACH funds from Alliant CU into the savings (since it is late today, the small deposits will probably not show up tomorrow)  When my funds are deposited into the savings, I will call & have the money placed into the 3.01% 3Mo CD.
Anonymous   |     |   Comment #64
A question for anyone who wants to respond.  As many of us know, over the past few years there have been a handful of credit unions, and a handful of banks, that have reneged on the Early Withdrawal Penalty commitments that they've made to CD customers.  This includes commitments made in their "Terms and Conditions" for CDs, or in documents that are very  similar to the T&Cs, such as the Andrews FCU "Truth In Savings" document.   This 3.01% 7-year CD has a fairly customer-friendly EWP of only 6 months.  Are any of you aware of any historical issues with Andrews FCU, where they've failed to honor EWP commitments that they've made? Or, perhaps they've had to be  "encouraged" by the NCUA, or even by masses of CD holders, to honor these commitments?   I'm just curious, before jumping in with both feet.  Thanks.
Anonymous   |     |   Comment #65
When I opened my account, I was told you can close your account any time and will be charged the penalty that goes with your account. I was then told that Andrews does not turn down early withdrawals.

Here is a little bit more info than Ken posted from the website;

<< Early withdrawal penalties (a penalty may be imposed for principal withdrawals before maturity): • If your account has an original maturity of less than 24 months, we will charge a penalty equal to 90 days of dividends. • If your account has an original maturity date of 24 months or greater, we will charge a penalty equal to 180 days of dividends. If the principal amount being withdrawn together with accrued but unpaid dividends is insufficient to pay the penalty, the Credit Union may deduct the balance of the penalty from any funds remaining in the share certificate, as applicable or in any other of your accounts at the Credit Union; or, on our request, you will pay us the balance of the penalty. In certain circumstances such as the death or incompetence of an owner of this account, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Different terms and conditions may apply to IRA, Roth IRA, or Coverdell ESA accounts.
Anonymous   |     |   Comment #66
Just talked to an Andrews CSR who said the deadline for starting 84-month 3.01% CD was being extended until 12/31/16.  (I didn't ask her about the 3-month CD.)
However, it might be good to get some confirmation of this from other CSRs.
Anonymous   |     |   Comment #67
I was told today it was extended. I had to verify identity to open my membership as my wife and I have credit freezes. I wired my deposit to my account. Will open the CD Monday.
Anonymous   |     |   Comment #68
what phone number did you use.  I got in after waiting 30 minutes on the phone and they said they had to transfer me to a customer service expert.  I've waited another 30 minutes and no one has picked up the phone.  This is torture.
Anonymous   |     |   Comment #69
What specifically did they want to verify identify w/o you using a pin to release credit report? 

And, for all...if IRA CD set up...did you confirm that QCDs and/or post 701/2 IRA distributions can be made w/o any penalty?

anonnona (anonymous)   |     |   Comment #70
I just saw this in reading Andrew's Truth in Savings Disclosure (and it applies to all their certificates, including the Black Friday specials, as well as all their other deposit accounts):

"Dividends are based on our current income and available earnings, after required transfer to reserves, at the end of each dividend period and thus cannot be guaranteed. Federal regulations prohibit payment of dividends in excess of available earnings."

So doesn't this mean if they receive too many deposits, and don't have enough cash in reserves, they DON'T have to pay ANY dividends on CDs -- and we'd be stuck for 7 years in something we couldn't get out of where the CU isn't paying any dividends? I know Ken is showing Andrews with an A+ score, but.. I've never seen language like this before at other institutions. Has anyone else? I'm thinking about opening up a large CD here (and even taking a penalty from where the money's at currently) and after seeing this, I'm not sure...

Comments, people?
anonnona (anonymous)   |     |   Comment #71
As just a PS, I tried goggling that language... and it only pops up at Andrews....
Anonymous   |     |   Comment #72
Google for the following phrase (without the quote marks):
"credit union nature of dividends"
You will finds hundreds (if not thousands) of credit unions with similar language in their Truth-in-Savings disclosure.  Nearly every credit union has it.

It is just standard boilerplate.  The only time the provision would apply is if the credit union were severely mismanaged and in severe financial trouble.  If that happened, the credit union would probably be on the verge of being shut down by the NCUA.

Don't worry about it unless you are putting money into a financially unstable credit union.
Anonymous   |     |   Comment #74
"Don't worry about it unless you are putting money into a financially unstable credit union."

You mean like Valor?
Anonymous   |     |   Comment #76
#73 & 74. Don't care (that much) about going in...the key is when taking money out.  Look at management and ratios, etc
Anonymous   |     |   Comment #73
They are just disclosing a provision of the federal regulations that apply to all credit unions (whether they disclose it or not).

12 CFR  Sec 702.403

It's not a :gotcha or a trick designed to steal money from you.  It's just revealing that a financially insolvent CU won't be able to pay dividends.  A CU in this condition is not going to stay in business for 7 years.
Anonymous   |     |   Comment #75
How come this 7 year cd with Andrews does not show up when you use the search for the best 7 year cd rates?   
anon41 (anonymous)   |     |   Comment #77
NO WITHDRAWAL of Dividends on this account! (unless you set it up that way at the beginning)

I was going to open one today (a LARGE account) but decided NO WAY. Why?
One REALLY BAD thing about this account is that you CANNOT access any of the dividends during the 7-year term without penalty, unless you ORIGINALLY set it up (at CD opening) to always put ALL the dividends into another Andrews account! This according to a CSR (who checked), and it appears to say that in the Truth in Savings disclosure as well.

This is really bad. As far as I know (am I WRONG?) most CUs and banks will allow you to take out the interest you've earned so far without penalty (I know for sure NavyFed does).

I certainly want my dividends to stay in the CD so that it will grow -- but if need of funds happens 3 or 4 years from now, I want to be able to at least access the interest I've earned, penalty-free. Not with this account.

This was a deal breaker for me. NO WAY. I'm not opening it up.

Has anyone else confirmed this? And isn't this really unusual? Again, my experience has been that most banks and CUs allow you access to the interest you've earned so far penalty-free...

Withdrawal of Dividends prior to Maturity: The disclosed annual percentage yield assumes that dividends will remain on deposit until maturity. You may alternatively elect to have your dividends transferred to another account with the Credit Union. A withdrawal of dividends before maturity will reduce earnings. Fees may reduce earnings.
Anonymous   |     |   Comment #78
Just talked to a floor supervisor who checked with the department that handles the CDs. Verified that this IS the case. You HAVE to decide EITHER/OR at the START of the CD, period. So either you have ALL your dividends sent to you each month (in which case the CD NEVER grows at all) or you have NO ACCESS to ANY dividends penalty-free ever again. A shame.

(For IRA certificates, Andrews will apparently allow you to change mid-stream -- though you might want to verify this -- but for non-IRA certificates, it's EITHER/OR as far as dividends, non-changeable).

Can I ask, what's the norm here at other typically high-rate CD places?
I know Navy, NWFCU and NASA allow penalty-free access to dividends at anytime (changeable).

Had my funds at Navy (another 18mo left @ 2.5%), was going to take the mild EWP and move them to Andrews, but not anymore. Guess I'll have to wait for Navy to have another special...
Anonymous   |     |   Comment #79
Why wouldn't you want the interest to stay deposited? If the rate is good, doesnt this interest that remains earn interest? The only reason I see to withdraw the interest is if you need the funds.
Anonymous   |     |   Comment #80
Of course. But 7 years is a long time, and being able to change later to have access to those dividends is important (and something most places allow). As this is my retirement money I never want to have to dip into the principal (and of course want to try to keep the dividends in the CD). But as a freelancer, should I need the dividend money in the future (for instance, to pay for medical premiums) I need the assurance that I can have access to at least the dividends earned so far penalty-free. This is pretty common with most CUs I've encountered. For instance, Navy, NASA, NWFCU, and a local credit union all allow this (access to the dividends at any time, penalty-free). So I won't be going with this. Like PenFed's 30% EWP penalty, not having access to already-earned dividends if needed later on is an outlier, and a dealbreaker for me.
Anonymous   |     |   Comment #81
"More importantly" is the aggregate $ amount to ensure compliance with FDIC insurance.  If an IRA, should be a non-issue for RMD.
Anonymous   |     |   Comment #87
This is SUCH a non-issue at this time, assuming you agree we are in either a rising or steady interest rate environment.  Have you never heard of compounding of interest OUTSIDE the certificate!!?  Good heavens, what could be more obvious.  And in a rising interest rate environment you actually obtain a higher APY that way!!

But even worst case, with no compounding whatsoever outside your Andrews certificate (which is incredibly unlikely), your difference between APY and APR for this certificate is just 0.03%.  Said another way, without compounding and assuming you do none outside the certificate either (again, very very unlikely) your APY for the 84 month is 2.98%!!  And still with the same friendly EWP.  What is not to like about that!!

But here is reality:

In all likelihood, given current interest rate trends, you will make MORE money, not less, compounding your interest outside the CD!  As interest rates rise you will have your dividends in hand, and NOT locked up, to invest at the new higher rates.

Worry about having to take your interest out every quarter is, frankly, without good basis, even worst case.  You're still getting a big fat 2.98% APY. 
Anonymous   |     |   Comment #88
#87... Some need the $ to live on!
Anonymous   |     |   Comment #89
No problemo.  When you take the interest out instead of re-investing it, you can do whatever you LIKE with the money.  For those who need the dividends for living expenses, the entire issue raised by #80 is moot anyway.  Hence, there was no need for me to address that aspect, and I did not.  You needed me to EXPLAIN this?  Geez.
Anonymous   |     |   Comment #94
Sorry, but that doesn't make sense (being able to "make MORE money") by having all the dividends sent to you, instead of leaving them in Andrews.

Prove me wrong.

I did some calculations. Say if you put in $303,500 at Andrews for 84mo and had all the dividends go into the CD (and with Andrews, NEVER having them available penalty free). After 84mo (2.98% compounded quarterly=3.0134%) that $303,500 would turn into $373,608. Great.

Now what you're talking about is "make MORE money" by having all the dividends sent to you from the beginning, instead of having them be added to the CD.
Ok, let's look at the math.

One quarter's worth of dividends on $303,500 (compounded quarterly) is $2261. Divided by 3, that's about $753.66 per month in dividends.

Since putting them into another CD outside of Andrews would defeat the purpose of NOT having them locked up, the only real choice is a high-rate liquid savings account. Currently, a place like Alliant pays 1%. Let's use that (you can occasionally find slightly higher, but Alliant has been consistent for a long time at that rate).

Doing the math, putting each quarterly $753.66 dividend check when it comes, into Alliant, will pay, at the end of 84 months, $21831 (all the dividends plus the 1% interest earned as the dividends were put in Alliant every 3 months. For instance, your first dividend check will be there for 81 months assuming you don't take anything out. Your next dividend check will be in Alliant for 78 months, etc). I did the math. $303500 + $21831 = $325,331. Compared to (if you kept all dividends at Andrews, locked with no penalty free withdrawal of dividends) $373,608. That's over $48,000 less by taking the dividends out.

So NO, you will NOT make more by taking the dividends out and putting them elsewhere. Let's use common sense. Even if rates do go up (as I believe they will), NO liquid account will soon reach a consistent 3% (if it ever does some years from now, which I doubt, it'll be too late to make a difference). Of course there are stocks, betting on the horses, going to Vegas... but that defeats the purpose of putting the money in a safe, guaranteed CD.

So again, back to my point, 3% is nice, but not if there's the possibility of needing the dividends in the future (and not being able to get them penalty-free later if you change your mind and need them later, when other institutions like NavyFed let you do that). And having it set up in the beginning to have ALL dividends paid to you may be a nice steady way to pay bills, but you LOSE A LOT BY DOING THAT, NOT GAIN A LOT as you say.
Anonymous   |     |   Comment #95
Your fallacy is assuming liquid account interest rates will remain low as they are today.  But set that aside:

What the heck is the matter with 2.98% APY instead of 3.01% APY, especially when at the 2.98 you have your dividends to do with as you wish?  You are engaged in an exercise of straining at gnats and swallowing camels.  You're looking at the trees and ignoring the forest.

Let me take one last shot at trying to clarify your thinking.  If you invest money and take out the interest and stash that interest in your mattress, your APY will be 2.98% on your original principal.  Now, OTOH, if you invest money and take out the interest and immediately move that interest into an account paying 3.01%, your APY on your original principal will jump from 2.98% to 3.01%.  Big whoop.  Going further, if you invest money and take out the interest and immediately move that interest to an account paying between 0% and 3.01%, then your overall APY will be between 2.98% and 3.01%.  Finally, should you be able to reinvest your interest into an account paying over 3.01%, then your overall APY could actually be higher than 3.01%.

Frankly, regardless which scenario you choose, the differences are small when compared with not investing any money at all at the 3.01% rate, which is the path you are choosing.  I think, taking into account our rising interest rate environment, you should reconsider.  Do not allow the good to become the enemy of the perfect. 
Anonymous   |     |   Comment #97
Two things:

(1) Sorry, I used the monthly amount instead of the 3-month amount in my figures. So the difference is much less (though there's still a difference).
Keeping it all at Andrews: $373,608.
Taking dividends each month and putting them in a 1% account (dividends plus 1% interest on those dividends as they roll in every 3 months): $368,987.
So there's a difference of about a $4,620 over the 7 years (assuming I don't touch the dividends but have them handy in case I need them).

(2) I believe you're still wrong though, implying liquid interest rates would be going up a lot. The Fed will move slowly, and liquid accounts are the last ones to go up. And if they do it will be in small increments, and won't ever approach 3% for a liquid account.

So okay, the difference it's terrible, but it's still a $4600 ding over 7 years for having those dividends sent (and re-invested @ 1%) vs keeping them on the CD.

And when comparing it to what the 6-month penalty would be on those dividends if I opted NOT to be sent the dividends and then had to do the penalty if I took them out later on... 6 months of interest penalty on 303,500 (in the beginning) would be about $4,500. Later on as it grows, 6 months of interest on, say, 365,000 is 5,440. (compared to the 4,650 ding of having the dividends sent and placed at Alliant). But again, that's a ding that other places don't charge (as many other places give you access to the dividends).

If I open this account up, I also would have to pay a 6mo EWP from the place where my funds are now (@2.5% APY, matures in 18mo), so that's also a ding I have to take into consideration.
Anonymous   |     |   Comment #98
i meant to say the difference ISN'T terrible (but it's still a 4600 ding over 7 years)
Anonymous   |     |   Comment #101
Oh, heck yeah.  This is the first you mentioned you have no liquid funds.  That is a really big deal and totally decides the matter beyond any doubt in favor of the course you have chosen.  I was assuming you had liquid funds available and ready to go.  I myself would not cash out on an eighteen month CD at 2.5%.  Heck, I would eagerly be buying on those terms!!

You're in great shape.  Have a happy Thanksgiving!
Anonymous   |     |   Comment #102
Yeah, that's pretty much my entire retirement funds. Getting at the funds means a $3450 EWP penalty now (which, after 18mos of the difference in interest rates, the $3450 would "become" $2150) so in the end, I'd be out $2150 for the chance to get that 7yr 3% w/6mo EWP.

Because I know at some point I'll have to break whatever CD the funds are at, a lower EWP is probably the most important thing to me, so 7 years at 3% with only a 6mo EWP is pretty tempting (especially because while Navy gives you free access to your dividends and a 6mo EWP, it's only a 6mo EWP up to a 5 year term -- more than 5 years at Navy, like a 7year CD, is a 12mo EWP, which I wouldn't want to do in my situation). So I guess I'm hoping that in 18mo there will be something that pops up in a relatively short window of time that will be around 3% with an EWP of 6mo (so if at Navy, not more than a 5yr term because the EWP will go up to 12mo there if it's more than 5 years). It's a gamble either way, but because of both the dividend situation and the EWP penalty, I'll probably just keep put for now.
Thanks for your comments, happy thanksgiving to you as well
Anonymous   |     |   Comment #107
For Anonymous 78,  I just got off the phone with Andrews Fed. CU.  Asked, if I could request quarterly
dividends from the 84month/3.01% CD, anytime during the life of the CD. 
CSR, said yes, no EWP penality for requesting quarterly dividends. Can be done anytime. Does not have to be done when you open the CD.
Anyone else receive this same information?  Anonymous 78 Have you verified what you were told?
Posted this same message on another Depost Acct/Andrews post. Was Anonymouse 5.
Has anyone else actually called Andrews!  Not hearsay.
Anonymous   |     |   Comment #111
See post further on down, with FINAL VERIFIED WORD near the top.. comment #110
Anonymous   |     |   Comment #104
Received "Share Certificate Disclosure" and under "Transaction Limitations" it reads "Dividends credited during the term may be withdrawn at any time during the term; withdrawing dividends can reduce future earnings. Dividends not withdrawn become part of the principal of the share certificate when the share certificate is renewed for another term. Withdrawals of principal during the term are subject to early withdrawal penalties."
Hope this clarifies the issue. 
Incidentally,  I had no difficulty establishing an Andrews account and funding an 84 month certificate using the usual on-line strategies including an ACH push from my Capital One 360 checking. 
Finally, we can't see the future, so CD laddering is the only rational strategy.
Anonymous   |     |   Comment #105
Is there a PDF of that somewhere you can post or link to? Because Andrews' general Truth in Savings contradicts that -- and I called Andrews yesterday twice, once speaking to a CSR, and the 2nd time speaking to a supervisor who put me on hold, called the department that handles the CDs, and verified that it's either/or (if you choose to have the dividends compounded to the CD, you can't later change your mind and get at the dividends penalty free).
So sorry to ask this, but is there any way I could see that PDF?
(This is for the 84mo NON-IRA CD, yes?)
Anonymous   |     |   Comment #106
Just found it in the Truth and Savings disclosure I was sent upon opening membership and sure enough you're right. Strange because even supervisors were saying "no" (including one who put me on hold for 20 minutes to check with the department who handles CDs). Just called again, was told "no" yet again even by another supervisor before telling him to look at page 6 of the Truth in Savings disclosure. Then he said "I guess you're right". But that doesn't instill a lot of confidence in me...
Anonymous   |     |   Comment #108
Another update: Latest supervisor just spoke to someone in the CD dept again (and gave me the name of the person in the CD Dept who he spoke to -- not sure if I should post it here or not).

The lady in the CD dept told supervisor that if someone initially sets up the CD to have the dividends added to the CD (instead of paid out quarterly to the person), later on if that person needs access to the dividends, they'll do it penalty free ---- but by then changing the structure of the CD, so from that point on, all future dividends will be sent to the person (including retroactive up to that point). It sounded like you DON'T have the option to just ask for part of the dividends and to keep the dividends adding to the CD.

In other words, say if after a few years someone has $5000 in dividends and that someone needs $1200 to pay an emergency bill. It sounds like they won't let you simply take out $1200 of the dividends -- you'd have to basically have all the dividends earned by you to that point sent to you, and change the set up so that all future dividends from that point on will be sent to you as well.

That's not really good.

I asked the supervisor to again check to make sure, because having those kind of restrictions on the dividends seems to fly in the face of the Truth in Savings disclosure, it doesn't mention all those restrictions on it.

Am waiting for a call back, will post when I get a call back...
Anonymous   |     |   Comment #109
Just called Andrews. Non IRA 7 year Cd. Just copying my original post to save time. Sorry
if you read it again. (seems this question is still unanswered).
For Anonymous #5,  I just got off the phone with Andrews Fed. CU.  Asked, if I could request quarterly
dividends from the 84month/3.01% CD, anytime during the life of the CD. 
CSR, said yes, no EWP penality for requesting quarterly dividends. Can be done anytime. Does not have to be done when you open the CD.
Anyone else receive this same information?  Anonymous #5, Have you verified what you were told?
Anonymous   |     |   Comment #110

The CSR supervisor I spoke with (Jason) called back over to the CD Department and spoke to someone who actually handles these things (Daisy)... and Daisy then confirmed this information with her own boss in the CD Dept (James) as well.

Here's the policy if you set up your CD to have the dividends add/compound to your CD:

While you technically "can" later withdraw your dividends at anytime...
-They will only allow you to do it ONCE.
-The amount can only be ALL of your dividends earned to date.
-From that point forward, they will then change your CD so that from that point on, all FUTURE dividends are sent to you instead of compounded to your CD.

In other words, say a few years down the road you have $5,000 in dividends and really need $1,200 of that to pay a large bill. You can't simply take out the $1,200. Your only choice if you want any of your dividends penalty free is to take ALL of them earned to date -- and from that point forward, to have all future dividends sent to your Andrews savings account (instead of compounded to your CD).

This differs quite a bit from a place like Navy, where, if you had $5,000 in dividends, you could call up one day and get $1,200 of it, the next day get another $450 of it, a month later, get $600 more, etc.

It also is really disappointing (and though not fraud, absolutely misleading) in what little options you have -- for the "Transaction Limitations" say you can have access to your dividends without penalty (which technically you still do) but doesn't go into the severe limitation of choice you have to get at those dividends (basically, take them all and change your account so all dividends from then on are mailed to you instead of compounded -- or you can't).

Of course you can initially set up your account to have all dividends paid to you, but you'll earn less money that way than if allowing those dividends to compound.

Anyway, that's the final word. So I think I'll pass on this CD after all...
Frank Walker
Frank Walker   |     |   Comment #112
Earn less money?  On your original principal?  OK, so where are you going to invest money today in an NCUA-insured CD at an APR=APY=2.98%.  Tell me, please, where I can go and do that and with an EWP of only 6 months to boot.  Many thanks.
Anonymous   |     |   Comment #114
No, not on the original principal, on the dividends. I said you'd earn less money by having the dividends sent to you each quarter instead of reinvested. Not a huge difference but if the principal is around 300k, it's about a 5k difference over the 7 years
Anonymous   |     |   Comment #113
I say, go with what is in writing. Period.
Anonymous   |     |   Comment #125
Anonymous #110.  Thanks for the clarification. So still not a bad deal. Dividends are
accessible. I opened 4 CDs. So I would only have to touch 1 CD if I needed extra cash.  Also, since the EWP is only 6 months. If rates do rise in the future, I'll just  pay the penalty and get another CD.  Your explanation is different from some of the original statements made, (you have to decided yes/no when opening the 7 yr CD if you want dividends, or you have no access for 7 years).  So again, thanks for doing further research.
Ed (anonymous)   |     |   Comment #115
If you don't like it.....don't open it. The End. No need to read in and out, ponder, overthink, get frustrated, etc.

Forget about this 3% CD and move on.

Hope there will be another 3% that can satisfy ALL your demands of taking out your dividends at however much amounts you want without any penalty....LOL talk about spoiled people these days.
Anonymous   |     |   Comment #82
Has anyone asked Andrews personnel the question - If the unexpected happens and I need to retrieve some funds from my CD, can I retrieve just what I need (say, 30%) and suffer the early withdrawal penalty on that 30%, or do I have to completely "break" the CD, take all my funds and suffer a penalty on 100%?   I did not see a clear-cut answer to that in their "Truth in Lending" document.  I've seen banks & CUs do it both ways.
Anonymous   |     |   Comment #83
Do an IRA and if you need $s to a 60 day max. rollover to you.  Then take it to another financial institution.  Ask if no penalty b/c it I an IRA rollover.  If ANY financial institution is in "bad" shape you may not get your funds anyway!  There are no more "runs on the bank."  Then Insurance "should" kick in.
NYCDoug   |     |   Comment #136
Plan for the unexpected by breaking up your CD into two, three, four or more separate CDs (depending on the size of the total dollar amount) so that a future needed amount can be withdrawn early, in an emergency -- yes, by "breaking" it, i.e., with an EW Penalty -- without affecting the others.

For example, $100K, instead of invested in one lump sum, could be divided into four $25K CDs -- all of the same duration -- that run in parallel, with the same interest rate. You might think of these as "sub-accounts."

In lieu of dividing your total equally, you might also do something like 50% + 30% + 20% + 10% . . . or whatever makes best intuitive sense to you. 80/20? 30/30/40? 10/10/10/10/10/10/10/10/10/10? You call the shots!
Anonymous   |     |   Comment #84
This is unconfirmed.  Again, this is not confirmed so please don't jump all over me if this is another misleading internet fable.  I have not taken the time to research this because it does not help me personally.  But others might find it worthwhile at least to investigate this so here goes:

I have heard Andrews is now making available a new six month CD at the 3.01% APY. 
Anonymous   |     |   Comment #86
Guys this is an update to my post an hour ago (or whatever) about the six month.  I'm just off the telephone with Andrews FCU on an unrelated matter.  Took opportunity to ask about this.  Here is what I can report:

Springfield is a town (or city) in Virginia.  The CU is opening a new branch there, in Springfield.  As part of that Grand Opening Special there is a six month CD being offered at 3%.  To obtain the deal you can appear in person, there at the new branch in Springfield, VA.   Can it be done by mail by telephoning the Springfield branch and working something out?  I dunno.  You would have to telephone them, at the branch, and inquire.  But in general this is a branch thing and is not available when you call Andrews HQ.

So is this apparently Grand Opening (only) deal the basis for the internet scuttlebut I was hearing?  Again, I do not know.  This seems a possibility, but there is no way for me to know for certain.
Anonymous   |     |   Comment #85
Is anyone else getting error messages when trying to upload .PDF files (Driver's License, Utility Bill, etc.) during the membership process?

Every time I try to upload a file I get the following error message... PDF IS NOT VALID AND CANNOT BE PROCESSED.

I know for a fact that the files I'm trying to upload are fine, because I've uploaded them to other sites with no problem at all.
Anonymous   |     |   Comment #90
it's a Black Friday joke. Andrews' service sucks.

my application has been pending for a week, called numerous times, each representative tells you bs about how busy they are.... but nobody can help you open this 3% CD before this joke expires...

I have accounts in a few other decent other credit unions, none of them as bad as this one.
Ed (anonymous)   |     |   Comment #126
Funny, because I was able to open it in 2 days right when it started. They must be swamped with people who wants to open it too. The early bird gets the worm!
gregk (anonymous)   |     |   Comment #92
The seemingly unqualified enthusiasm for this Andrews CD offer among DA commenters is quite startling (mild EWP notwithstanding).  It's as if no one sees how much the ascendancy of Trump changes everything, and how likely it is that the financial environment we've grown used to over the preceding 8 years is now a bygone era.  Of course nothing's happened yet.  But the big tax cuts and big increases in government spending (and bigger deficits than anything we've seen under Obama) likely to ensue under President Trump (not to mention possible trade wars) are sure to stoke the embers of inflation into what could become a roaring fire, with significant increases in interest rates a predictable correlate.  To commit funds in the light of such prospects for 7 years at a still historically paltry rate predictably to be uncompetitive in a year or two's time has become on balance a very questionable strategy.  One cant be sure of anything (as I suggested) and our impulse in recent years to ravenously jump on these "deals"  without much reflection so as not to miss out on what it might be long until we see the likes of again strongly conditioned into us at this point.  But myself I'm staying flexible for now and will watch how things shake out over the coming months.  3% won't be so rare as it has been anymore moving forward IMO, and there will be other opportunities to do even better in the not so distant future.  As the first poster here cautioned, Andrews may well be luring us close to a trap.  I'd suggest a bit more wariness and circumspection on the part of everyone as to what the consequences could be.
Anonymous   |     |   Comment #93
I am that first poster and I agree with you that 3% for seven long years is most unlikely to fly.  So when I jumped in on this it was as a 2%, eighteen month deal.  No question you're right that Trump is going to shake things up economically big time.  He already has done that to some extent.  But the American economy is a huge oil tanker, not a tugboat.  I think it will take a bit of time for everything to turn around and for inflation really to heat up.  It could easily take as long as eighteen months!  Also, Yellen will be hanging tough (around Trump's neck probably, like a millstone) until 2018.

Course if we're both wrong and rates remain low despite Trump, I will just hold on a while longer and watch my effective APY go up from the 2% to ? (whatever).  
Anonymous   |     |   Comment #96
#92 please make paragraph occasionally.    8)
Anonymous   |     |   Comment #99
If you are so sure about interest rates rising, can you invest in some instruments that short the interest rate market and you make a bundle if interest rates go up?  
Anonymous   |     |   Comment #100
We've heard this for a very long time. During that time central banks printed so much money the world is indebted beyond belief. The slightest raise in rates will tank the market, rates will not rise very fast or far and more debt will be issued. Last 12 months: 200K (10-years, 2.5%); 50K (10-years, 2.25%). I could have driven down to VA and opened up one more account for the magical 3% but I chose a 4.6% dividend stock instead. Managing accounts at several banks and credit unions is a pain.

Another essential factor is age and expected longevity. I've watched too many "retirement plans" instantly go up in smoke due to sickness and death. At some point in the rate chasing game the only question to ask, "what's the point?" Carpe Diem.     
Anonymous   |     |   Comment #103
Just a few thoughts. Back around... 2010-2011 there was a bank listed here on DA offering a 3.25% 5yr add-on CD. I wasn't sure whether to do it. After all, rates had been low, and they had to go up, right? 5 years? But boy, did that prove to be a good thing.

Rates now have been low for so long now, I believe they will indeed go up, at least a bit (and it's tempting to look back at old DA posts that mention 5%-6% CDs at Andrews only 8-10 years ago), but I also can't fault those going in for the 3%/7yr.

To me, even when market forces are in place, interest rates are like the opposite of gasoline prices: quick to fall, slow to rise (ie, much quicker in one direction than the other). I think rates will go up, but it'll be slow. So I can see the argument for either way.
Ed (anonymous)   |     |   Comment #116
And you know that 3% won't be so rare because......? You work as a Fed chairman? Nope.....You have a time machine? Nope.....You have ESP into the future? Nope.....

Did you even predicted that Trump will win? Doubt it.

Unless you can see into the future, I have as much confidence as what you had just said as Yellen promising an interest rate every quarter.....LOL
Anonymous   |     |   Comment #117
Ed, you're nothing but an old sourpuss.  What happened, did somebody burn your Thanksgiving turkey?  Did a storm take out your power just as you were about to shop that Black Friday sale you've been waiting on for two years?  We all hope things are better at your place by Christmas!  Meanwhile, cheer up.  Things could be worse.
Anonymous   |     |   Comment #118
The FED is now trapped in their own quagmire. QE failed to deliver the world over and there's simply no way central banks will destroy pensions and 401K's with serious rate increases. The ship has sailed. We are stuck with low rates until the bubbles burst of their own accord, which they always do. Remember, we we're heatedly debating negative interest rates how long ago? Last week, the week before? Uh, when did economic fundamentals suddently change. They didn't and the next "correction" will awaken the senses once again. The FED's balance sheet will probably never be cleared which simply means they did what many predicted...monetized the debt.

On a personal note, our medicare premiums went up over 9% for next year. 
Anonymous   |     |   Comment #119
When trump repeals Obamacare and will not have to worry about annual increases b/c with the free market at work...they'll be daily!
Anonymous   |     |   Comment #120
I've never known anyone named IRMAA that I liked. 
Bozo   |     |   Comment #134
When I explained IRMAA to my wife, I explained it was just means testing for rich old folks (like us). So, the wife asked, "if we become poor, we won't have to worry about it?" "Yes", I responded, "but then we would be poor." She replied, "I'd rather be rich."

As a general rule, 0% of retired folks subsisting on social security alone google IRMAA. 100% of folks with MAGI over $200,000 in retirement income google IRMAA. After the google search, the most common response is likely a curse word.
Anonymous   |     |   Comment #135
Too late then!  Proper Prior Planning Prevents Pi.. Poor Performance!  The goal is no/less taxes...or what was it for you?
lou   |     |   Comment #141
Don't you mean $170,000?
Bozo   |     |   Comment #147
Lou, my point was merely that folks > $200K MAGI try desperately to get below the threshold.
Anonymous   |     |   Comment #164
Married, you need to be < $170k. Ask me how I know, as my part B&D almost. tripled in cost.
Anonymous   |     |   Comment #165
With a retirement income that high, and you want us to feel sorry for you people?  What a joke!
Anonymous   |     |   Comment #121
Can an account be opened with Andrews FCU without hard pull ?
and then share cert can be established over phone 

Anonymous   |     |   Comment #122
You would have to ask Andrews.  But be aware many financial institutions do a hard pull in anticipation of future business, as part of their routine customer inflow procedures. I have encountered this more than once, let me tell you.
Anonymous   |     |   Comment #127
Just a note for those of you linking an external account via trial deposits.  I did this and was hit with a $29 fee from Andrews when my other bank withdrew the trial deposits it had just made.  This was quickly and courteously reversed with a phone call to Andrews, but it is something to watch out for. I believe it happened because the account was considered overdrawn (below $5 minimum) at the time of the withdrawal (I was linking the external account in order to push money in, so it had nothing in there yet except the trial deposits). 
Anonymous   |     |   Comment #130
Thanks, Ken. You do a wonderful job with your website.
Anonymous   |     |   Comment #131
aren't you sweet
slacker   |     |   Comment #132
Just an update on my experience at andrews so far i asked why my 5 dollar share account showed as unavailable and was told that first 5 dollars on share account are on hold forever so you can't spend below the 5 dollar starting point so don't get to the point when you need to use that account to make some kind of transaction to avoid the 5 dollar inactivity fee after 1 year you will either need to put more money in or take out of your cd or other account there but remember by andrews own rules if you withdraw from your cd every thing it has earned so far will need to be taken out right away then and all future interest will need to go into your share account so it will no longer compound if you had elected to set it up that way not a very friendly rule but it is in there if you look for it so make sure you get a few extra bucks in the share account now to avoid this problem later on.......................
Anonymous   |     |   Comment #133
The $5.00 rule is common to all CUs that I know of. 

I have no problem with their rules about withdrawing the interest earned on a CD.
RJM   |     |   Comment #137
7 years for 3% just doesn't seem good enough to me so I'm not going to bother.
Anonymous   |     |   Comment #138
Fair enough.  I respect your thinking and decision, but I'm hoping you will allow this question:

Would a sixty month CD, with the same 3% APY and the same six month early withdrawal penalty, be sufficiently attractive for you to want to jump in? 
Anonymous   |     |   Comment #139
I don't know about RJM, but I would.  Along with my 84 month 3% APY CD.  That's the advantage of a laddered approach to CDs.  Having other CDs maturing at various dates to take advantage of rising rates, should that occur.   A person can never catch all the highs, but also are not stuck with the lowest rates either.  The long term average has worked out rather well.
RJM   |     |   Comment #142
Yes, I would do a 5 year at 3%. But that offer isn't really on the table, is it ?

I have several CDs expiring this month, later this month and in March. Trying to keep it with a firm I already do business with. Penfed, LMCU, Ally or Fidelity. Ive never done a CD with Fidelity before so that may be a first if I go that route.
Anonymous   |     |   Comment #143
Appreciate the response, RJM.  It is interesting to know your opinion.  And, no, there is no five year, 3%, deal on the table at this time known to me.  I was just curious where you draw the line.

Of course the now-dead 3% Valor opportunity was close, but not at all as regards the EWP, which is a very important aspect IMO.
me1004   |     |   Comment #140
To address one of the complaints in this thread about CSRs saying you cannot transfer funds from your savings account to open a CD until after the hold expires:

I was told two weeks ago by a manager that they had changed that policy, the money can now be transferred with the hold going to the CD. Strangely, the manager said the policy was NOT being noted publicly, which I take to mean not posted anywhere, as opposed to the CSRs not telling you you can do the transfer. The manager would not tell me when the policy had been changed - very odd to be so secret about it, but I have to presume not very long before I spoke with him.

I spoke with the manager after first speaking with a CSR, who at first said the money could not be transferred until the hold expired, but when I said to just transfer the hold with it, said, oh yes, they can do that. Aargh. So, if you get a CSR who says you can't make the transfer until the hold expires, just tel them what I did -- and if you need to, remind of the policy change about that.

I just opened a 18-month CD at 1.81% on Nov. 30 (not timing to the previous expiration of the offer, was just coincidence of another maturing CD), and free checking with first order of checks free. Everything went fine and smooth and efficiently. Yes, 3% is tempting, but to my mind, there are so many variables going on that I'm not so sure it would be a better deal in the long run, I suspect I will end up getting at least that much and maybe more as in 18 months, the Fed rate could easily be 1.5% than it is now more and maybe higher, and meanwhile I get to access the money in 18 months if wanted.
Anonymous   |     |   Comment #145
I think your comment regarding the 18 month at 1.81% is a good comment.  And I acknowledge Ken always cautions his readers about opening a CD while planning on early closure, and I agree with Ken.  But that notwithstanding, check out my math:

If you open the 84 month CD and then close that same CD after 18 months and pay the penalty, have you not earned an APY of 2%?  And of course 2% is higher than 1.81% . . . if I have the math right.  What do you think?
Anonymous   |     |   Comment #148
The penalty is also tax deductible
Anonymous   |     |   Comment #149
Got it...worst case...I pay 85% and the gov't 15%.   I like paying zero percent taxes.
Anonymous   |     |   Comment #144
For anyone who has never tried the shared branch deposit approach, I just wanted to say that I tried it for the first time today and it was amazing!!  Will definitely use in future instead of pushing or mailing funds.  I'd had a protracted, frustrating, and entirely futile experience trying to push in funds via ACH to fund this Andrews CD (I think my outside bank was mostly if not entirely to blame, so I will skip the gory details).  I was ready to try something new.  I searched the online directory, found a shared branch credit union in my neighborhood and headed over there.  It was just a drive through so I doubted they could really do it, but they efficently handled it.  The money showed up instantly in my Andrews account.  With a phone call, I moved the money into the CD (no issues with the hold) thus happily completing a process of CD opening that took just under two weeks all told!  
Anonymous   |     |   Comment #146
Thanks for posting your (new to you) CU shared branch experience.  I am about to try it myself for the first time, just as soon as my new account with Andrews FCU is approved.  Fortunately my local CU is a participating shared branch member.
Anonymous   |     |   Comment #151
Yes, the shared branch deposit approach is terrific!   But, I think it works best when you can go into a branch & complete the process with a live agent.  ACH works also, but it takes several days to transfer large amount of money.  Alliant CU will only transfer $25K per day.  It worked for me this time because that's all the liquid money I had available to open the 3Mo 3.01% CD.
Anonymous   |     |   Comment #153
Yes, that is my gripe when making money transfers through ACH.  Banks and CUs set their own arbitrary limits on the amount that can be transferred at one time.  Why?
Anonymous   |     |   Comment #150
This morning (12/4/16) there seems to be a problem with the "CD Early Withdrawal Calculator" on this website.  BUT it seems to happen ONLY for Andrews FCU, at least for me.   For Andrews, the response is "no CD product found, please input info manually", whereas just a couple days ago it worked fine.  Other CUs work fine, and I get the same result using a different browser.  (Inputting the data manually does work, but again, just a couple days ago the drop-down was auto-populated for Andrews as well as other CUs.)     

Anybody else get the same results?
susan (anonymous)   |     |   Comment #152
It has now been 8 days since i completed the online application.  When i log back in the status remains "pending".  Are others having equivalent delays?
Anonymous   |     |   Comment #155
If that's typical, looks like I have a long wait.  I just applied for membership three days ago.  I hope it's approved by Christmas. 
Anonymous   |     |   Comment #156
It isn't typical.  I applied way earlier when they first advertised Andrews FCU Specials.  They were not so busy, but when they show "pending" you need to call & find out the problem.  If they need something you can fax it them & get the matter handled.  Mine took only 4-5 days to receive my account #.  Then you can set up ACH or shared branching to get your money deposited to the Savings acct.  When money deposited you can call & have it transferred to the CD.
Anonymous   |     |   Comment #172
I applied for membership on-line, Dec 3rd. Just got my e-mail reply concerning my application processing from Andrews CU today, Dec 15th.
Anonymous   |     |   Comment #173
A very polite and helpful CSR at Andrews then called me, opened my new savings account and three days later after I mailed a check to Andrews FCU, opened the 84 Mo CD that I wanted. All went very smooth.
Anonymous   |     |   Comment #157
Call. and find out why
slacker   |     |   Comment #166
Susan I applied on 11-10 at 6am and was approved at 11am and had my account number , then by 1 pm i had hit a shared branch deposited my money there and by 3pm my cd was opened and funded so your 8 day wait is way to long seeing i had everything completed in a 9 hour span on the same day.....................
Anonymous   |     |   Comment #154
I'm waiting for higher yields on a 5 year bank CD without any hoops to join like credit unions have. This is a great rate don't get my wrong but 7 years is a little too long as interest rates are about to rise in December and into 2017 with Trump in office. Within a year or two interest rates on CD's and money market accounts are going to look drastically different IMHO.
Anonymous   |     |   Comment #158
If you think that's the case, why would you want to open a 5 year CD now?
Anonymous   |     |   Comment #159
Been on hold with AndrewsFCU for quite some time. When completing the application I noticed they had a CD for 6 months at 3.01%...Is this correct?
Anonymous   |     |   Comment #160
let us know when you get off the phone ok?
Anonymous   |     |   Comment #161
45 minute hold. 6 month share certificate special at 3%-only available in person at one of their locations.
Anonymous   |     |   Comment #163
For the record, I opened my 3.01% CD at a branch which is very distant from where I live.  The branch personnel worked with me just fine.  You do not have to go through Andrews HQ if you have a different preference.  I mailed my CD deposit to the branch manager straightaway, the account was opened very quickly, and I did not have to suffer the very long telephone hold times one encounters when you call Andrews HQ.  So, in short, the branches are happy to accept deposits you mail in.  Whether or not Springfield would also extend, to out-of-towners, that six month deal, I do not know.  Call them and ask.
Anonymous   |     |   Comment #167
Astonishing how indiscriminately DA members are jumping into this low rate long term CD.

Seven years from now Andrews will be a very, very healthy CU.
Anonymous   |     |   Comment #168
Maybe they know something that you don't.
Anonymous   |     |   Comment #169
And...maybe the don't know what they don't know
Anonymous   |     |   Comment #170
And maybe I feel a lot more like I do now than I did a while ago.
Anonymous   |     |   Comment #174
My Andrews account is finally open today! And it only took 12 days! Now I have to figure out how to get my money to them on time for the 7 year CD. Once my money is there, I hope I won't have to wait forever on hold again when I call to open the CD.
NYCDoug   |     |   Comment #175

Now find a Shared Branch, here

Visit the closest one, and deposit a check (from you, to you) with your Andrews account number. The funds will show up same day (almost instantly) in your Andrews account -- albeit with a hold.

Then just call Andrews, and set up your CD with the entire amount (save for a minimum $5 to be maintained in Savings). You can anticipate the hold transferring to your CD, where it will remain for 3~5 business days.

They've gotten quite efficient at doing this (based on my experience opening up similar CDs both last month and this month). Just anticipate a long wait on the phone (20~30 minutes, depending on when you call). After that, when you finally get to speak to a CSR, it should take less than 5 minutes, if you're clear, and have all your ducks lined up in a row

So it's really a game of "holds" . . . on the phone, and on your deposit ;-)

But you're almost there -- Happy Holidays!
Anonymous   |     |   Comment #176
I submitted my application (to open a savings accounts so I can buy the 3 mo 3.01% CD) last night and called now to expedite its opening. I was told that there are many ahead of me but since I submitted the application before the end of the promo period, they will honor it when it opens.
Andrews FCU Promotes Long-Term "Nest Egg" IRAs
Availability: Easy membership requirement

Andrews Federal Credit Union (Andrews FCU) is currently featuring two IRA Nest Egg Certificates (Traditional, Roth, and CESA): 72-month (2.25% APY) and 84-month (3.00% APY).

The minimum opening deposit is $1k and the minimum balance to earn the stated APYs is $1k. Dividends are compounded and credited quarterly.

60-month Jumbo Share Certificate

In April, Andrews FCU added six Jumbo Share Certificates (both CD and IRA) to its product line, which require a minimum $10k deposit. Of the six, the 60-month...

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Andrews FCU (Easy Membership) Hikes Rates For Military Appreciation Month
Availability: Easy membership

May is Military Appreciate Month and Andrews Federal Credit Union (Andrews FCU) is observing the occasion by offering higher rates on the 6-month and 18-month Share Certificates throughout the month of May.

6-month Share Certificate

  • 3.25% APY Military Certificate
  • 3.00% APY Civilian Certificate

18-month Share Certificate

  • 2.25% APY Military Certificate
  • 2.00% APY Civilian Certificate

The minimum deposit is $1k of new money, with a maximum deposit of $15k. This Military Appreciation Month offer is limited to one Share Certificate Special per member per account. In other words, you can open a...

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Andrews FCU (Easy Membership) Has Competitive 84-Month IRA
Availability: Easy membership

In July 2015, Andrews Federal Credit Union (Andrews FCU) added an 84-month IRA Certificate (Tradition, Roth, and CESA) to its product line. Nine months later, the initial 3.00% APY is still in effect.

The minimum deposit is $1k and there is no balance cap. Unlike most of Andrews FCU's other IRA Certificates, the 84-month IRA does not have a Share Certificate counterpart.

As stated in Andrews FCU's Truth In Savings document, the Early Withdrawal Penalty reads as follows:

If your account has...
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Top Long-Term CD Rates Continue at Andrews FCU - Easy Membership

It has been over a year since I last reviewed Andrews Federal Credit Union and its share certificates. It continues to offer competitive CDs that can be opened by people in any state. Its best deals are long-term CDs and IRA CDs. These include a 1.91% APY 5-year CD, 1.71% APY 4-year CD and a 1.41% APY 3-year CD. Minimum deposit is $1,000. These rates are listed in the credit union's rates page as of 5/29/2013.

The credit union's Truth in Savings disclosure provides the CD details including the early withdrawal...

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Competitive Long-Term CD Rates at Andrews FCU - Easy Membership

It has been over a year since I last reviewed Andrews Federal Credit Union and its share certificates. It continues to offer competitive certificates that can be opened by people in any state. Its best deals are long-term CDs and IRA CDs. These include a 2.30% APY 5-year CD, 2.05% APY 4-year CD and a 1.55% APY 3-year CD. Minimum deposit is $1,000. These rates are listed in the credit union's rates page as of 1/13/2012.

The credit union's Truth in Savings disclosure provides the CD details including the early withdrawal...

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