City Credit Union (TX) Promotes 4-Year IRA CD, 4.00% APY


Deal Summary: 4-year IRA CD, 4.00% APY, $1k minimum deposit

Availability: Residents of eight Texas counties (Dallas area). Possible easy membership requirement (but pricey).

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.

Joining City CU and/or opening an IRA CD can be done online, or in person at any of eight Texas branches located in Dallas (4), Duncanville, Gainesville, Sherman, and Waxahachie.

Credit Union Overview

City Credit Union has an overall health grade of "A" at, 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, 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.

Related Pages: Dallas banks, Sherman banks, IRA CD rates

Market Beater
  |     |   Comment #1
In November 2018, overwhelming confidence 2019 would bring five handles.

March 21, 2019, rush to five year CDs at 3.5%.

The phrase is contrary indicator. Blood in the streets. Thank you, Mr. Market.
deplorable 1
  |     |   Comment #6
I have only opened long term ADD-ON CD's for rate insurance. Short term CD specials still remain the best deals. I don't think there were any 4% add-on CD's that I recall last year.
Market Beater
  |     |   Comment #7
Thanks for the confirmation!
  |     |   Comment #2
Well, i thought the rate forecast was going down so i jumped on the 3.4%. Now i wish i have waited. For a 6 digits principle sum the interest difference is quite substantial. :(
  |     |   Comment #3
Since this is not an add-on CD a big issue may turn out to be, how to get a direct (trustee-to-trustee) transfer done before City CU ends this offer. For those still working some funding could from current-year (and right now, also past-year) IRA contributions. For many of us, adding only that amount of funding may not be worth the hassle.

Wish I had some idea of how long their direct transfers took, or whether a rate lock is applied once you join. I asked yesterday, and they're supposed to call back today.
  |     |   Comment #4
Just spoke to a CSR by phone. An IRA CD has to be opened in person at one of their branches. Don't bother unless you live near the area or within your driving distance.
  |     |   Comment #8
Just a heads up to save others time. Attempted to open the 4yr 4% ira cd. This CU, unlike all others I have used, does not allow a "funding" period. You are not allowed to open cd and then request trustee to trustee transfer to get funds there. You are required to show up with money (check) in hand to open the IRA cd. This obviously puts you at risk for closing a cd (maybe paying penalties), waiting for the cashiers check, then showing up to City CU and hoping the rates have not changed. This is a risk I won't take.
  |     |   Comment #9
Just to clarify..if doing trustee to trustee transfer, you must wait till cashiers check shows up to the City CU, then you can go in person to open cd, but only then is rate locked in.
  |     |   Comment #10
Have the IRA check issued in the name of the new trustee FBO...., then hand carry it to that trusted. It should be deemed as "transfer." If not accepted for the new IRA CD, put into a "money market IRA", wait for the check to clear and then do a similar transfer to another institution. The primary key in moving IRA money is getting it coded as a have to ensure that that is the case before you do it! For example, if you talk to Navy FCU IRA expert, no problem, if you talk to a "regular" Navy rep...they may not understand what is happening! Good Luck. Proper Prior Planning Prevents...Poor Performance." The 7 Ps.
  |     |   Comment #11
Agreed. However, my point is that with City CU you are at risk of their rates changing while you wait for the IRA check from old trustee to arrive. All other CUs i have used allow a "funding period" where your rate is locked while the trustee to trustee transfer occurs. Again, just a heads up to others.
  |     |   Comment #12
Also, maybe you are referring to all local activity. I am referring to moving money from institutions out of the area.
Southern Girl
  |     |   Comment #13
Jay #12, Just curious, have you asked old trustee to close IRA account as a trustee to trustee transfer and issue a check made payable to City Credit Union FBO........your name and send the funds to you by next day delivery? When you receive the funds you can get the funds to City Credit Union also by next day delivery. Just be sure to get name of representatives at both institutions that will send and receive the check.
  |     |   Comment #14
Have it sent by overnight delivery
  |     |   Comment #15
really 5000 to join ,is this bank for real
  |     |   Comment #16
Rate drops to 3.25% today, 4/16/19.
  |     |   Comment #17
The story of "meant to be".

I happened on this near the time it was offered around March 26. Thanks to the comments here learned that the IRA CD must be opened at a branch in person with an FBO check in hand. First I easily on-line opened a savings account after joining the DHS. The funds I chose to use for the IRA CD were at Fidelity in a Treasury ETF, so I sold and waited for settlement. When the cash was available in the account I completed the Fidelity form requesting the FBO check be mailed to me. Fidelity required a medallion signature on the form which I acquired at my bank (with much more bureaucratic difficulty than I thought reasonable). I mailed the form to Fidelity next day mail. Fidelity was quite responsive and mailed me the check within a very few days.

Now for the interesting part. I live in Virginia and booked a flight leaving at 6:00 am for Dallas and returning at 6:45 pm same day on 4/26. I had to get up at 2:30 am to make the flight. Before I left I checked the City CU website and the promo CD had been taken down. As I left I told my wife I'd missed it by a day and expected to open a MMKT account and move the money ASAP or possibly get Fidelity to void the check (just a thought). I arrived at Dallas and took a UBER to the main branch on Ferguson Avenue. I arrived at their door about 10 minutes before they opened, then checked in at the welcome desk and was told to wait until my name was called. In the lobby there was an electronic sign advertising rates and to my great surprise and elation the 48 month 4% promo CD was there! So wow, I'm not too late. What a relief. My name called I was greeted by a very friendly representative and went back to her office. I explained my purpose, presented my ID and check. I told her of my trek from VA, that I was a bit tired, and very glad to know the promo CD was still available and was assured it was. Half way through the paper work the question of "direct transfer" versus "rollover" came up and she said she should check with her boss. I'm thinking I obviously prefer direct transfer but a once a year rollover is just fine here. I'm waiting for a while totally unaware of the discussion they were having. The boss knew the promo had ended yesterday. She did not know since she was off the previous day and was not informed the promo CD was no longer available. Maybe the sign in the lobby was the deciding factor but she argued my case and I did get the promo CD. Almost a miracle.
Three things:

1) I decided to go to the main branch on Ferguson Ave. There was one closer to the airport. Would I have had the good fortune to encounter a representative elsewhere that was unaware that the promo CD was not over? Would there have been a "boss" with the authority to approve the issuance of the CD given the circumstances?

2) The sign in the lobby still offering the promo CD. Would I have seen one elsewhere?

3) Arriving all the way flying in from from VA before the branch opened. Somewhere in the morning this oversight would have been corrected.
  |     |   Comment #18
Good story! Some think that a direct Ira transfer cannot be in your hands even if check is made payable to back up position is exactly what you stated...give me all the money in my ira account and do once in 12 month rollover...that has always got there attention. But having more add-on IRAs would solve timing issue...Ken, listening?
City Credit Union (TX) Ups 12-Month CD Rate
Deal Summary: CDs – 12-month (2.50% APY), 18-month (2.50% APY), 24-month (2.75% APY), 30-month (2.75% APY), 36-month (3.00% APY), 48-month (3.25% APY), and 60-month (3.50% APY), $500 minimum deposit. 12-month Jumbo CD (2.60% APY), $99k minimum deposit.

Availability: Residents of Cooke, Dallas, Denton, Ellis, Grayson, Kaufman, and Rockwall Counties, Texas

It’s been more than three years since I last wrote about City Credit Union, (City CU) but considering its new CD rates, it was worth the wait. City CU began the week with across-the-board increases of 100 bps...

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City CU (TX) Has Best Rate 60-month CD Available In Texas
Availability: Residents of Dallas, Cooke and Ellis counties in Texas

City CU (Texas) closed early today due to inclement weather, but not before raising the rate on its 60-month CD (2.50% APY). The minimum deposit is $500 and there is no balance cap.

The 60-month CD is also available as an IRA (Traditional and Roth) at the same APY, but with a minimum deposit of $250. A 60-month Youth CD (2.50% APY) is also being offered, but with a lower minimum deposit of $100.

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