Consumers Credit Union (Consumers CU) has added a promotional 21-month "Back to Savings" CD (1.75% APY). While not exactly a “wow-worthy” rate, the beauty of this CD is its one-time penalty-free withdrawal, available anytime throughout the term. The minimum deposit is $1k, with a balance cap of $250k.
If additional withdrawals are made following the one-time penalty-free withdrawal, they are subject to the Early Withdrawal Penalty.
The penalty for early withdrawal of a CD with a term of 1 year or less is 90 days loss of interest, and a CD with a term of greater than 1 year is 180 days loss of interest.
I’ve mentioned this before, but it bears repeating: this Consumers CU is located in Michigan and should not be confused with the Consumers Credit Union located in Illinois. The Illinois-based Consumers Credit Union may be more familiar to DA readers, due to its easy membership requirements and its Free Rewards Checking account, which currently earns 4.59% APY.
More than a year ago, Consumers Credit Union expanded their field of membership (FOM), which previously only included eleven west Michigan counties. Now U.S. Citizens, 18 years or older with a valid Social Security number, who live, work, worship, or are enrolled in a post-high school educational institution in Michigan’s Lower Peninsula are eligible to join.
Immediate family members of a current Consumers CU member, or individuals who live in the same household as a current member, are membership eligible.
At first glance, it looked as if Consumers CU had added a “real” online application, but it’s still just a pre-membership contact form. Potential members who do not live near a branch are able to join and open accounts through the U.S. mail.
The Back to Savings CD promotion page has its own “Complete this form to get started." Consumers CU also has 14 full-service branches located in Coldwater, Grand Rapids, Holland (2), Kalamazoo (6), Mattawan, Portage (2), and South Haven.
Consumers CU’s online banking platform is currently limited to bill payments and account management, including TextBanking that allows you to receive your account information via texts.
As part of the expansion of the FOM, Consumers CU has joined the CO-OP Network that gives Credit Union members access to more than 30,000 free ATMs nationwide.
Credit Union Overview
Consumers Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.41% (excellent) based on June 30, 2017 data. In the past year, Consumers CU increased its total non-brokered deposits by $129.04 million, an excellent growth rate of 21.68%. Please refer to our financial overview of Consumers Credit Union (NCUA Charter # 62172) for more details.
Headquartered in Kalamazoo, Consumers Credit Union is Michigan’s 12th largest credit union, with more than $905 million in assets. Locally owned since 1964, it has grown to over 84,000 members, and in a recent survey, more than 98% of the Credit Union’s members stated they were satisfied or very satisfied with their Consumers Credit Union membership.
How the Back to Savings CD Compares
When compared to CDs with similar terms, the Back to Savings CD’s APY isn’t anything to get excited about. In fact, the 1.75% APY is 55 bps lower than the current top 24-month term rate available in Michigan, and 27 bps lower than the current top nationally available 24-month term rate. The one-time penalty-free feature makes the Back to Savings CD more like a Savings or Money Market account, albeit with very limited withdrawal options.
At the moment, there aren’t any other one-time penalty-free CDs that I’m aware of available in Michigan. AgFed Credit Union had offered a nationally-available 30-month No Penalty CD, but that has ended. Two internet banks (Ally Bank and CIT Bank) do offer unlimited No Penalty CDs, but with terms of only 11 months, this is not an apples-to-apples comparison. The one-time penalty-free feature on a longer term CD can be seen as a benefit: if rates should go down, you still have a CD earning a higher rate.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|1.75% APY||21-Month Back to Savings CD ($1k min)||Consumers Credit Union|
|1.50% APY||11-Month No Penalty CD ($25k min)||Ally Bank|
|1.45% APY||11-Month No Penalty CD ($1k min)||CIT Bank|
The above rates are accurate as of 9/29/2017.