In late September, a long-time DA reader from the West Coast told me about a couple competitive long-term CDs being offered by Burbank City Federal Credit Union (Burbank City): 48-month Fixed Rate Share Certificate (2.00% APY), and 60-month Fixed Rate Share Certificate (2.25% APY). As Burbank City makes any rate changes at the beginning of the month, I waited until I could confirm the rates were valid through October.
All of Burbank City’s Share Certificates have five rate tiers, with the highest APYs offered on deposits of $100k+. While tiered rates are not uncommon and are usually structured in stair-step fashion (5 or 10 basis point increases per tier), Burbank City’s tiers have a large increase between the $1k and $5k tiers, and the $50k and $100k tiers.
The 48- and 60-month Fixed Rate Share Certificates are also available as IRAs (Traditional, Roth, CESA), earning the same tiered APYs and with the funding requirements.
As stated in the Truth In Savings disclosure, the Early Withdrawal Penalty reads,
If the term of the account is one year or greater, the member shall forfeit an amount equal to:
a) All accrued, earned, and unearned dividends for 180 days on the amount withdrawn, or
b) If a withdrawal or imposed penalty reduces the balance below the required minimum, the account shall be closed and a loss of dividends, as stated above, will be assessed on the entire amount in the account.
Many thanks to the DA reader who let me know about these deals, and for providing the following information:
- Joining the Credit Union and opening a CD resulted in a hard credit pull by Transunion, a ChexSystem pull, and a public records pull.
- Opening an account in the name of a trust ran into some complications: Burbank City required that the member bring in the full trust document and required Social Security numbers and birth dates of the successor trustees.
Headquartered in Burbank City in Southern California, Burbank City Federal Credit Union’s field of membership is primarily employment based, with employees/retirees/members of the following organizations eligible to join:
The City of Burbank, Burbank City Employees Association (AFSCME 3143), FotoKem Film and Video, Burbank Association of Realtors, Burbank Community YMCA, International Alliance of Theatrical Stage Employees (IATSE Local 33), Burbank Chapter of the National Charity League, Inc, and Autry Museum Docent Council.
In addition, residents of Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura Counties, who join either the Friends of the Burbank Public Library or the Burbank Historical Society ($10 fee for either), qualify for membership.
Immediate family and household members of current Burbank City membership are also eligible for membership.
Complete details are available on the Field of Membership page.
Joining Burbank City and opening a variety of accounts can be done online, or in person at the single branch location on Magnolia Blvd. in Burbank City. The Credit Union’s Membership Application is available for download to expedite the process.
Credit Union Overview
Burbank City Federal Credit Union (NCUA Charter # 3943) has an overall health grade of "A" at DepositAccounts.com, with an excellent Texas ratio of 3.78%, based on June 30, 2016 data. In the past year, Burbank City has increased its total deposits by $19.27 million, an excellent annual growth rate of 7.82%. Please refer to our financial overview of Burbank City Federal Credit Union for more details.
Founded in 1940, Burbank City Federal Credit Union’s home for the first ten years were a variety of the City of Burbank facilities, including three years in Fire Station #1. It was more than 35 years later before the Credit Union broke ground for its permanent home. Burbank City is currently California’s 98th largest credit union, with more than 17,800 members and assets in excess of $292 million.
How the CDs Compare
When compared to the 211 similar length-of-term CDs tracked by DepositAccounts.com that are available in Southern California, Burbank City Federal Credit Union’s 48-month Fixed Rate Share Certificate APY currently shares the top spot with NASA FCU’s 49-month Certificate Special ($5k min) and Bay State Savings Bank’s 48-month CD ($1k), regardless of minimum deposit.
When compared to the 225 similar length-of-term CDs tracked by DepositAccounts.com that are available in Southern California, Burbank City Federal Credit Union’s 60-month Fixed Rate Share Certificate APY currently ranks third, regardless of minimum deposit.
The above rates are accurate as of 10/7/2016.