February 25 through March 2 is “Military Saves Week,” a campaign coordinated by the Consumer Federation of America and is dedicated,
to helping service members and their families save money, reduce debt, and build wealth.
More than 80 banks and credit unions are participating in Military Saves Week 2019, including Andrews Federal Credit Union (Andrews Federal), which will be offering a Special 6-month Share Certificate (3.25% APY) between February 25 and March 2, 2019. The minimum opening deposit is $1k and is capped at $250k. New money is required, or “the member must have a checking account, debit card, and direct deposit of $750 or more per month.” There is also a limit of one 6-month Certificate per member.
Note: All Andrews Federal members are able to open a Special 6-month Share Certificate. Even though it's only available during Military Saves Week, no military relationship is necessary.
IRA or not?
There’s no mention of an IRA in the fine print, but in the past, Andrews Federal CD Specials have not offered an IRA option. I will update this blog post when I have a definitive answer from the Credit Union.
UPDATE 2/19/2019: Not available as an IRA.
As stated in Andrews Federal's Truth-in-Savings document, the Early Withdrawal Penalty (EWP) 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.
Thanks to DA reader, Eil, for the Forum post about Andrews Federal’s Special 6-month Share Certificate.
Other Short-Term Certificates
Andrews Federal has been offering very competitive short-term Certificates for the past eight months. DA members who regularly read the bi-weekly CD Rates Summary have seen Andrews Federal’s 8- and 9-month Certificates near or at the top of the “Under 1-Year CD Rates” category.
|2.86%||$1k||-||Andrews Federal Credit Union||8 Month Certificate Special|
|2.75%||$1k||$250k||Andrews Federal Credit Union||9 Month Certificate Special|
84-month Certificate Special
At the other end of the term spectrum, Andrews Federal's 84-month Certificate Special currently earns 3.45% APY. This Special has become more attractive for two reasons: 1) interest rates may have peaked for this cycle, and 2) the Early Withdrawal Penalty is only 180 days of dividends. If rates should drop in the next few years, your investment will continue to earn 3.45% APY through 2026. If another rising rate cycle begins before the seven years is up, you would only lose six months of interest on any withdrawal.
UPDATE 2/18/2019: DA reader, Anon, posted the following in the comments section below:
I went to open the 84 month CD last week. At the last step of the opening process
a pop up window appears with terms and conditions. It states the ewp is 360 days.
Even though the Truth-in-Savings document states,
If your account has an original maturity date of 24 months or
greater, we will charge a penalty equal to 180 days of dividends,
it's quite possible that Andrews Federal has a newer version of the Truth-in-Savings document specific to Certificate Specials. I'll check with the Credit Union, and update this post when I receive the latest EWP information.
UPDATE 2/22/2019: Andrews Federal confirmed today that the EWP for the 84-month CD is definitely 180 days of dividends.
UPDATE 3/2/2019: The fine print (footnote 6) on the Special Certificates Rate page has been updated and reads:
The Special 84-Month Certificate has a penalty equal to 360 days of dividends.
Headquartered in Suitland, Maryland, Andrews Federal Credit Union’s field of membership includes virtually all U.S. citizens and resident aliens with a valid Social Security number.
Easy Membership Requirement - Members of the American Consumer Council (ACC) are eligible to join Andrews Federal.
Note: Andrews Federal's online application asks for your ACC membership number; in other words, you must join ACC prior to joining Andrews Federal. As stated in the online application, “You can join ACC at no charge by using the promo code – Andrews."
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 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 Federal and/or opening a Special Certificate Special can be done online, or at any of ten U.S. branches located in Maryland (3), New Jersey (3), Virginia (2), and the District of Columbia (2). Andrews Federal also has branches associated with military bases in Germany, The Netherlands, and Belgium.
Credit Union Overview
Andrews Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 3.81% (excellent), based on September 30, 2018 data. In the past year, Andrews Federal has increased its non-brokered deposits by $103.95 million, an excellent annual growth rate of 7.77% APY. Please refer to our financial overview of Andrews Federal Credit Union (NCUA Charter # 5754) 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. Seventy-one years later, Andrews Federal is Maryland’s fourth largest credit union and the 150th largest credit union in the country, with more than 128,000 members and assets in excess of $1.7 billion.
How the Special Share Certificate Compares
When compared to current nationally available similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit, Andrews Federal Credit Union's Special 6-month Share Certificate APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|3.25% APY||Special 6-Month Share Certificate||Andrews Federal Credit Union|
|2.86% APY||8-Month Certificate Special||Andrews Federal Credit Union|
|2.78% APY||6-Month Share Certificate Special||Interior Federal Credit Union|
|2.75% APY||9-Month Certificate Special||Andrews Federal Credit Union|
The above rates are accurate as of 2/18/2019.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.