It’s been almost two years since I had occasion to write about CDs offered by Illinois-based Consumers Credit Union (CCU). Last week, CCU raised the rates on all three 20-month CDs by a uniform 25 bps. The new rates may seem low, but in today’s environment, they’re very competitive. Any rate hike these days is a ray of hope for savers.
|1.20%||$250k||-||Consumers Credit Union (IL)||20 Month Super-Jumbo CD|
|1.10%||$100k||-||Consumers Credit Union (IL)||20 Month Jumbo CD|
|1.00%||$250||-||Consumers Credit Union (IL)||20 Month CD|
All three 20-month CDs are offered as IRA CDs (Traditional, Roth, CESA, SEP) earning the same APYs with the same deposit requirements.
As stated in the Truth in Savings Disclosure (TIS) the Early Withdrawal Penalty reads as follows:
Terms of more than 1 year – 120 days’ dividends
The TIS further states,
However, any certificate funded using ACH origination, will be restricted
from any withdrawal for 90 days from the date of the ACH settlement deposit.
Funding and Maturing Funds
Funding a CD can be done by ACH, wire transfer ($10 fee), or an internal transfer from an existing CCU savings/checking account. CCU participates in the CO-OP Shared Branch network facilitating the transfer of funds into a CCU liquid account.
There is a 10-day grace period before a CD automatically renews. Special term lengths (like 20-month) will renew as the “next closest regularly available term at maturity.” Maturing funds can be distributed by check to the address on file, by wire transfer ($25 fee), or transferred to a CCU savings or checking account.
Unlimited beneficiaries can be named, with assigned percentages available. Social Security numbers are required for all beneficiaries.
Free Rewards Checking
Consumers Credit Union is probably best known for its popular Free Rewards Checking account.
Four months ago, the rates for the tiered APYs dropped by 100 bps, with some minor, but advantageous, changes made to the qualifying requirements. For more details on the Free Rewards Checking account, please refer to my May 7, 2020 blog post.
If you have already have a Free Rewards Checking account or are thinking of opening one, don’t overlook CCU’s Smart Saver, which currently earns 1.50% APY. There is a limit of one Smart Saver account per membership and a CCU checking account is required.
|1.50%||$50||$1k||Consumers Credit Union (IL)||Smart Saver w/checking|
|0.25%||-||-||Consumers Credit Union (IL)||Smart Saver w/o checking|
According to the TIS disclosure, the following monthly qualifications must be met to earn the stated APY.
a) deposits totaling at least $50.00 into the account; b) maximum aggregate deposit per month is $1,000.00, however there is no restriction on the total balance (can accumulate); c) ACH direct deposits or remotely deposited checks totaling at least $500.00 into any non-IRA checking account with the same primary owner (membership) ; and d) must be enrolled in eStatements.
Headquartered in Gurnee, Illinois, Consumers Credit Union offers membership to virtually any U.S. citizen or resident alien, regardless of residency or employment status. CCU’s Membership Page states,
Membership follows a simple, two-step process: Pay a one-time, non-refundable $5 fee to our sponsor, the Consumers Cooperative Association, and then deposit and maintain a minimum $5 in your Membership Share/Savings Account.
Joining CCU and/or opening a CD Special can be done online, or at any of the eleven full-service Illinois branches, located in Des Plaines, Gurnee, Kildeer, Mundelein, Northbrook, Palatine, Round Lake Beach, Schaumberg, Streamwood, Volo, and Waukegan (2). As stated on CCU’s Locations and Hours page,
All service center lobbies are now open by appointment only. Select your location from the list to schedule your appointment. You will be asked to select between a Teller Counter Transaction or an Account Services Transaction.
CCU also participates in the CU Service Centers® Network network.
We are part of an international group of credit unions called the CU Service Centers® Network, which provides you with additional service centers where you can take care of your banking needs.
Credit Union Overview
Consumers Credit Union (IL) has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.16% (excellent) based on June 30, 2020 data. In the past year, CCU has increased its total non-brokered deposits by $947.12 million, an excellent annual growth rate of 91.08%. Please refer to our financial overview of Consumers Credit Union (NCUA Charter # 68588) for more details.
Consumer Credit Union is currently the fifth largest credit union headquartered in Illinois, with nearly 169,000 members and assets in excess of $2.4 billion. Chartered in May 1930 as Consumers Cooperative Credit Union, the Credit Union had 32 shareholders, $367 in assets, and three outstanding loans ($225 total) at the end of 1930. The “Cooperative” in the original name was a nod to the Cooperative Trading Company of Waukegan, a local dairy cooperative.
Effective June 1, 2020, the merger between CCU and Andigo Credit Union was finalized, although the integration won’t be complete until 2021. According to the Credit Union Merger Update page,
The combined credit union will eventually operate under the Consumers Credit Union name. In the interim, Andigo Credit Union will be operating as Andigo Credit Union, a Division of Consumers Credit Union.
It is important to note, for members who maintain deposit accounts with both Andigo Credit Union and Consumers Credit Union, the federal deposit insurance coverage is consolidated under Consumers Credit Union for all combined deposit accounts. In the instance you have or decide to open new accounts at either location, the maximum level of federal insurance applies to the combined totals of your deposit accounts regardless if they are held at Andigo Credit Union or Consumers Credit Union.
How the CD Specials Compare
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, Consumers Credit Union’s 20-month Super Jumbo and Jumbo CD APYs currently rank second and third, regardless of minimum deposit.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|1.30% APY||15-Month CD Special (no min)||Vibrant Credit Union|
|1.20% APY||20-Month Super Jumbo CD ($250k min)||Consumers Credit Union|
|1.10% APY||20-Month Super Jumbo CD ($100k min)||Consumers Credit Union|
|1.05% APY||18-Month CD ($500 min)||Pen Air Federal Credit Union|
The above rates are accurate as of 9/10/2020.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.