The elusive 4% CD has appeared again, but in this instance, it’s only available as an IRA CD. City Credit Union (City CU) added the 4-year IRA CD (Traditional and Roth) to its product line last week. The minimum opening deposit is $1k, with no stated balance cap.
The IRA CD Disclosure, the Early Withdrawal Penalty reads as follows:
We may impose a penalty if you withdraw any funds from your Account before the maturity date. The penalty will equal 4.0% of closing balance.
If the IRA CD is closed before interest has been paid, any accrued interest will not distributed.
There is a ten-day grace period before the IRA CD will automatically renew.
You may prevent renewal if you:
(a) withdraw the funds at maturity or within the grace period set forth below; or
(b) contact us within the grace period to deposit the funds into another Account at City CU.
Many thanks to DA reader, rockies, for posting on this deal in the Forum yesterday.
Headquartered in Dallas, City Credit Union’s field of membership (FOM) is primarily residency based, with individuals who live, work, worship, or attend school in the Texas counties of Collin, Cooke, Dallas, Denton, Ellis, Grayson, Kaufman, or Rockwall eligible to join.
In addition, employees and individuals associated with more than 180 businesses and associations (listed on the first page of the online application) are also eligible for membership. As rockies noted in the Forum post, one of the eligible associations is the Dallas Historical Society (DHS), which can be joined by anyone. DA reader, me1004, pointed out that a DHS membership can be a bit pricey, with membership fees ranging from $25 to $5,000.
Credit Union Overview
City Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.57% (excellent) based on December 31, 2018 data. In the past year, City CU has increased its total non-brokered deposits by $48.08 million, an excellent annual growth rate of 14.23%. Please refer to our financial overview of City CU (NCUA Charter # 67669) for more details.
City Credit Union’s history began in 1942 with a mere $50 in deposits – the minimum amount required to qualify for a State of Texas Credit Union Charter. In August 1942, the first financial statement showed total assets of $1,821, total cash of $1,712, and $100 in loans. Over the past 77 years, City CU has grown to become Texas’ 51st largest credit union, with more than 36,00 members and assets in excess of over $467 million.
How the IRA CD Compares
When compared to similar length-of-term IRAs tracked by DepositAccounts.com, requiring a similar minimum deposit and available to within the FOM, City Credit Union's 4-year IRA CD APY currently ranks first.
The above rates are accurate as of 3/26/2019.
To find the most competitive IRA rates, both nationwide and state specific, please refer to our IRA Rates Table page.