It’s been more than two years since Chartway Federal Credit Union (Chartway) offered any kind of competitive CD. That changed last week with the addition of 155 bps to its 12-month No Penalty Share Certificate (2.00% APY). The minimum opening deposit is $500, with no stated balance cap. While the rest of Chartway’s Share Certificates have tiered APYs, the No Penalty Share Certificate earns 2.00% APY on all balances of $500 and above. There is also a “Youth” version, which requires only a $100 deposit, but is capped at $500.
The no-penalty feature permits one partial withdrawal (any amount) or a complete early closure without a penalty. As stated in the Truth-In-Savings disclosure,
For No Penalty Share Certificate accounts, you may make one withdrawal without penalty once your account has been open for at least seven days; however, additional withdrawals will be subject to an early withdrawal penalty of 90 days’ dividends.
Thanks to DA reader, thowellIII, for his very helpful Forum post, in which he noted,
Chartway has a Single Account Fee, so if you close the CD and only have the Prime Share Account, you could be hit with a fee. You can avoid the fee by having a second custom share account (even with just a token amount in it).
Headquartered in Virginia Beach, Virginia, Chartway Federal Credit Union’s field of membership (FOM) offers a way for almost any U.S. citizen and resident alien to join.
Easy Membership: You can qualify for membership by joining Chartway’s We Promise Foundation with a $10 donation. (Joining the We Promise Foundation is the fourth option listed on the online application.)
Residency: Individuals who live, work, worship, or attend school in an area served by a Chartway branch are eligible for membership.
Employment: Employees of the 750+ companies who have chosen to offer Chartway’s credit union benefits are eligible to join.
Relationship: Family members and household members of current Chartway members are also welcome to apply.
All of Chartway’s Virginia branches are located in the Norfolk/Virginia Beach metro area. Chartway acquired Utah-based HeritageWest Credit Union a few years ago and while those branches operated under the HeritageWest brand for some time, they have been re-branded as Chartway branches.
Credit Union Overview
Chartway Federal Credit Union has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 7.021% (excellent) based on March 31, 2018 data. Chartway has an above average capitalization level (9.89%), the result of holding $2.11 billion in assets with $209.12 million in equity. Please refer to our financial overview of Chartway Federal Credit Union (NCUA Charter # 13242) for more details.
In September 1959, seven Norfolk Naval Air Station civilian employees each contributed $5 and the NorVA N.A.S. Federal Credit Union was founded. The original FOM included both civilian and military personnel, and their family members. With an expanding FOM and fewer ties to the military, the name was changed to Chartway Federal Credit Union in 1996. Chartway FCU currently has more than 181,600 members and assets in excess of $2.1 billion.
How the No Penalty Share Certificate Compares
If this comparison section looks familiar, it’s probably because you read the Ally Bank 11-month No Penalty CD blog post late last week. No-penalty CDs are a rare commodity, with only three nationally available no-penalty CDs currently being offered. When dealing with no-penalty CDs, the longer the term, the more competitive the CD is. While Chartway’s No Penalty Share Certificate term is only one month longer than Ally Bank’s 11-month, the $500 minimum deposit requirement gives the Chartway No Penalty Share Certificate a slight edge over Ally Bank’s No Penalty CD.
A comparison to a savings or money market account is a good alternative when discussing no-penalty CDs. There are currently two banks offering 2.25% APY on nationally available savings account. While a savings account provides more flexibility in regards to deposits and withdrawals, unless there’s a rate guarantee, there always a chance that a great rate isn’t going to last.
The above rates are accurate as of 8/6/2018.
To search for nationwide CD rates and CD rates in your state, please refer to the CD rates section of DepositAccounts.com.