Many thanks to the DA reader who pointed out the competitive rates offered on Clearpath Federal Credit Union’s (Clearpath) 60-month Savings Certificate: 1.41% APY ($50k min), 1.26% APY ($10k min), and 1.11% APY ($500 min).
The Savings Certificate is also offered as an IRA Certificate (Traditional and Roth), earning the same tiered APYs with the same tiered deposit requirements.
According to the Truth-in-Savings (TIS) disclosure,
We will not change the rate on your account during the term of the account. However, you have a one-time option during each term of this account to exchange this dividend rate for a new dividend rate. The new dividend rate will be the dividend rate we are then offering on this term share account of equal term to maturity as the original term of this account. This exchange will be at no cost to you. If you make an exchange, the maturity date of this account will remain the same as originally scheduled. You may exercise this option once during each term.
You may make one deposit during the term of the account. That deposit may
not exceed $10,000 or the initial balance of the certificate, whichever is less.
As stated in the TIS disclosure, the Early Withdrawal Penalty (EWP) reads as follows:
If your account has an ongoing maturity of one year or more: The penalty we may impose will equal 90 days dividends or $10 whichever is greater on the amount withdrawn subject to penalty.
The TIS disclosure also specifically states that withdrawals are permitted.
You may make withdrawals of principal from your account before maturity. Principal withdrawal before maturity is included in the amount subject to early withdrawal penalty.
A 90-day EWP for any term-length greater than one year is very mild and can be advantageous should rates begin to rise significantly in the next four or five years. Using DA’s Early Withdrawal Penalty Calculator, you can see what the effective yields would be on a month-by-month basis, demonstrating that closing a 60-month Savings Certificate wouldn’t be that financially painful. For example,
- 1.33% APY – closed at 4 years
- 1.30% APY – closed at 3 years
- 1.24% APY – closed at 2 years
- 1.18% APY – closed at 18 months
- 1.06% APY – closed at 1 year
Dividends are compounded every month and can be credited to the Savings Certificate, transferred to another Clearpath account, or mailed to the account holder’s address on file.
There is a grace period of ten calendar days before a Savings Certificate automatically renews.
Headquartered in Glendale, California, Clearpath Federal Credit Union’s field of membership (FOM) provides a path to membership for virtually all residents of Southern California by joining the Clear Giving Charitable Association ($5 one-time donation).
Clear Giving Charitable Association is a nonprofit association that promotes and supports the philanthropic activities of select non-profit 501(c)(3) charities within the greater Southern California area.
The fourth option on the online application reads,
I would like to join the Clear Giving Charitable Association which makes me eligible to join Clearpath FCU. (C.U. Membership is subject to payment of $5 initial Clear Giving Dues.)
Also qualifying for Clearpath membership are,
- Employees/retirees of Ralphs Grocery Company or Food for Less (Southern California),
- California employees/voting member of 40 companies/associations, and
- Relatives of current Clearpath members, including “spouse, domestic partner, children, siblings, parents, grandparents, grandchildren, aunts, uncles, nieces, nephews, cousins and in-laws.”
A minimum $1.00 initial deposit into your Share Savings Account
is all you need for access to all Credit Union products.
Clearpath participates in both the CO-OP Shared Branch and ATM networks.
Conduct business just as if you were in a Clearpath branch. Make deposits, withdrawals, loan payments or Visa® cash advances. Many have Saturday hours! All you'll need is your Clearpath account number and a picture ID.
Credit Union Overview
Clearpath Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 8.27% (excellent) based on June 30, 2021 data. In the past year, Clearpath has increased its total non-brokered deposits by $10.05 million, an excellent annual growth rate of 9.24%. Please refer to our financial overview of Clearpath Federal Credit Union (NCUA Charter # 9556) for more details.
Founded in 1954 as the Ralphs Employees Federal Credit Union, the Credit Union’s original FOM was exclusive to Ralphs Grocery Company employees. (Ralphs Grocery Company was founded in 1873 by the Ralphs brothers, George and Walter, and is the oldest grocery chain west of the Mississippi.) Following an ongoing expansion of the FOM, the Clearpath rebrand occurred in 2006 to “give the credit union the opportunity to re-target and re-approach a large market of potential members and should also help solidify existing member relationships.” Clearpath currently serves nearly 12,000 members and holds assets in excess of $138 million.
How the Savings Certificate Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available throughout Southern California, Clearpath Federal Credit Union's 60-month Savings Certificate top tier APY currently ranks first, regardless of minimum deposit requirement.
The above information and rates are accurate as of 9/30/2021.
To search for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.