Andrews Federal Credit Union Adds Wow-Worthy 7-Month CD Special
Now through December 2, 2022, Andrews Federal Credit Union (Andrews Federal) is offering a 7-Month Inflation Buster Share Certificate Special (IBSCS) earning 5.00% APY. The minimum opening deposit is $1k of new money (funds not already on deposit at Andrews Federal) and there is a balance cap of $100k. There is a limit of one 7-month IBSCS per member.
The 5.00% APY is definitely “wow-worthy,” but I wouldn’t call it a “hot deal” because of the $100k balance cap. The 5.00% APY is actually higher than any short-term brokered CD rates currently available, which is not an easy feat for direct CDs in today's rising rate environment.
Note: While the fine print on the landing page states the 7-month IBSSC “will be available through 12/02/2020,” it includes this cautionary sentence:
The credit union reserves the right to change offered rates at any time.
As stated in the fine print on the Special Certificates Rate page, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity of less than 24 months,
we will charge a penalty equal to 90 days of dividends.
Funding and Other Particulars
According to CSR, the easiest way to fund a 7-month IBSCS is through an internal transfer. Andrews Federal participates in the CO-OP Shared Branch network, facilitating the transfer of “new money” into an Andrews Federal Base Share Savings Account. Funds can also be transferred by ACH, wire, or check.
Maturing funds can be distributed by cashier’s check to the address on file or transferred to a Base Share Savings Account.
Dividends are compounded and credited every quarter and may be transferred to another Andrews Federal account.
Up to four beneficiaries (equal shares) can be added using the Payable-On-Death Beneficiary Designation Form. Social Security numbers are required for all named beneficiaries. The form can be returned by secured message, by email, or at any branch location.
There is a ten calendar grace period before a 7-month IBSCS automatically renews as a 12-month Share Certificate.
Many thanks to all the DA readers for their Forum posts, comments, and emails about the 7-Month Inflation Buster Share Certificate Special. In the Forum posts, several readers have been sharing their experiences as they try to open a IBSCS. If you are considering opening a IBSCS, I would highly recommend reading the Forum posts.
Headquartered in Suitland, Maryland, Andrews Federal Credit Union’s field of membership (FOM) includes virtually all U.S. citizens/resident aliens (18 years or older) who have 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 on Andrews Federal’s Membership page,
You can join the American Consumer Council at no charge. Just use 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 businesses/groups in Maryland, New Jersey, and Virginia offer Andrews Federal membership as an employee 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 the 7-month Certificate Special can be done online, or at any of ten full-service 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.
Your Andrews Federal Credit Union membership begins with a $5.00 deposit to your Base Share Savings Account.
Andrews Federal participates in the CO-OP Share Branch Network, providing its members with access to more than 5,600 branch locations and over 30,000 ATMs.
Through the CO-OP Shared Branch Network, you will be able to complete some of the same transactions as if you were at an Andrews Federal branch.
Credit Union Overview
Andrews Federal Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 8.09% (excellent), based on June 30, 2022 data. In the past year, Andrews Federal has increased its non-brokered deposits by $42.55 million, an above average annual growth rate of 2.34% 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-four years later, Andrews Federal is currently Maryland’s fourth largest credit union (and the 171st largest credit union in the country), with more than 134,000 members and assets in excess of $2.4 billion.
How the 7-Month Inflation Buster Share Certificate Special Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that available nationally and have minimum deposit requirements of $10k or less, no bank or credit union has a higher rate than currently offered on the Andrews Federal Credit Union 7-month IBSCS. The following table compares the 7-month IBSCS to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 11/8/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
It's not just today's election, which is of course important. But also on Thursday, at 8:30 am ET, we will learn the latest readout concerning inflation in October. So shortly thereafter, with any luck at all, we will have more information that could impact a CD purchase decision of this Andrews CD. At least I hope by then enough votes will have been counted. And a Thursday CPI announcement is all but guaranteed. I can wait two days to decide on this one.
Really appreciate your posts and ideas, thanks.
Since TIPS yields have been positive since June, I've been replacing my maturing CD's with TIPS. At the outset, the yields were paltry. But now that they're over 1%, they're getting yields close to those that could be had before 2008.
My main concern is principal protection. I really don't need to try to squeeze-out another percentage point or two hoping that a 5% CD will suffice to do that. I don't have to try to predict when CD rates will be higher than inflation.
The stock and bond markets will continue their November rally if the election predictions hold true. The "all knowing markets" have been looking to any bone to chew on for the last several months. However, it may only last thru Wednesay.
The Cleveland FED's "Nowcast" is estimating the October inflation to be up +0.76%. That makes an annualized "looking forward" rate of 9.12%. If that projection holds true it bodes well for future CD and bond rates.
So, it comes down to whether inflation facts will prevail over market sentiment. Market psychology may prevail in the short term. The Cleveland's FED's Nowcasting is projecting +0.62% inflation for November. Yet another high number.
I'm just hoping that "irrational exuberance" in the stock and bond markets don't kill the yields that are currently available on TIPS. When I run out of "dry powder", I may even break a few CD's to lock in positive yields versus inflation.
Thanks for your posts. Ok, just let me know when and what to buy.
All that while you are waiting on the hold to come off, your money is sitting in their savings account at 0.05% APY interest, basically nothing, you lose a week or more of interest.
Just FYI. And this even though I have been a member for years. I actually recall being furious about this when I first joined, but I thought it was for new members only.
Also their EWP is only 6 months on 5 years CDs.
Is it possible for you to deposit a cashier's check at a shared branch with no hold at Andrews Federal Credit Union?
This cd is for only 7 months. Seems like a lot of work to open it just to close it 7 months later
Any check gets a hold. I now recall this issue from when I first joined the CU years ago, I thought it was because I was a new customer. I'm not a new customer now.
Yes, I know this is the only place that handled it like that -- everyone else will transer with the hold o it, not a problem, the hold is to protect them from losing the money by someone withdrawing before the check clears. It's not so they can hold our money for a week of basically no interest. They would not budge.
The rep is supposed to TRANSFER THE HOLD FROM THE SHARED ACCOUNT TO THE CD.
There is absolutely no reason for them to waste your time. If God forbid the check doesn't clear, they are at the same risk whether the funds are in a CD, checking, savings, etc. doesn't matter.
So yes, you should absolutely ask for a Supervisor if you get the wrong answer. Unless all supervisors at Andrews have become completely incompetent, I can't fathom any other reason for them to tell you that the investment should be delayed.
Please add Andrews FCU to the CD rate table. Thank you.!
So will inflation still be hanging around seven months hence when this Andrews CD matures? I think the election outcome mitigates in favor of that by possibly stifling Fed response. So why not collect your 5% for seven months, sit tight, and see what happens?
As I wrote above, we still have the October CPI number emerging in 24 hours. It is released early in the day leaving, barring an unanticipated print, time to wire funds to Andrews in advance of the holiday. As for me, I'll probably wait until Monday. That option provides a cushion should the wire go awry. If your wired funds become "lost", you don't want a three day holiday weekend to get in your way as you pursue a trace. At least I think Friday is a Federal Reserve holiday. Could be wrong. I have not checked.
Constant bailouts mean inflation. Eventually, fixed income owners, are not going to accept less than inflation.
Good luck, to all hard-working self-sufficient people.
Eventually, even central banks might learn that spending Trillions to delay economic reality, is not a good use of Trillions of Dollars.
Yes, same here. And I have bought a chunk of long-term fixed-income, far longer than 7 years. Because absent stimulus, that is still being spent, I think rates should decline.
Though I don't recall anyone calling me crazy for buying long-term CDs, or other fixed-income. Not that I would have noticed. Might be an imagined drama.
Then quit reading and listening to all the talking heads sending you on the emotional roller coaster of having no idea from their cumulative "expertise" what is going to unfold, and ignore the markets too, which are a no more accurate compass in determining the future of things but gyrate almost psychotically.
So what to do? How about listening to the Fed Governors, and tuning into their expressed and unanimous mindset, - and watching the data they are watching? Has anything along these lines indicated interest rates are anywhere close to begin falling (or even stop rising), - that inflation is significantly moderating, that unemployment is accelerating, that a recession is about to occur? Nothing to my observation.
So why this irrational belief among some posters (and Ken himself) that they've missed the boat, they've held out too long, and they better act now before rates are back to zero again?
It's astonishing, and without any "real world" foundation whatsoever.
It's almost 100% certain 75 to 100 basis points increases are coming in the next few months. It would be inconceivable to me that we would not have CDs over 5% with a Federal Funds rate of 5%. The real question is will the Fed have to go higher than this. I think the economic and labor market data suggest they will. If this is the case, it's very conceivable we may be seeing 6% CDs in the not too distant future.
I have met so many people who will keep cash liquid for 6-12 months waiting for the "peak CD rates". Even after they THINK they locked in the peak rate, I calculate and show them the final maturity dollar amount of their CD, then I do the math and calculate if they would have taken the lower APY from 6-12 months ago. I will add in the 6-12 months of interest they missed out on of course. The ending result is most of the time the numbers are about the same, or the difference isnt worth the "work" they put in. OK BUT, here is the real kicker, you dont know what rates will be at the end of the 5 or 7 year CD period. So, what if by opening the 5 year CD exactly 6-12 months earlier, it just happens to mature during another peak time(?)......................For example, I opened a lot of 5 year CDs in 2018, which will all mature in 2023 (which is shaping up to be perfect timing)..... BUT when I look back at the data, it appears rates peaked in 2019 (oh crud, I missed out on all that extra money by locking too early didnt I ?!), which those would have matured in 2024....which COULD BE too late...shoot, we may be in a recession by 2024 with obama ZIRP back. You see what I mean? Timing CDs is just about as futile as timing the market. But this is just one mans opinion.
You are still, somehow, confusing coupon with yield..
Paying well over 100% of par for a bond with a coupon of 7%, means the yield you will actually earn less than 7%.
You can't magically earn the 7% coupon while you own it, and then sell it so someone else who will earn the 5% yield.
In a meantime everyone's forward looking opinion has 100% chance of being as good as dart throw