Democracy Federal Credit Union IRA CDs Continue To Lead
At the beginning of the year, I wrote about the three IRA Certificates (Traditional or Roth) offered by Democracy Federal Credit Union (Democracy FCU). The very competitive rates are still in effect, as are the unlimited additional deposits (minimum $25) allowed throughout the term. The three different term lengths require three different minimum deposits: 12-month, $500; 36-month, $2k; and 60-month, $2.5k.
According to CSR, the Early Withdrawal Penalty (EWP) for all three IRA Share Certificates is 90 days interest on the amount being withdrawn, with partial withdrawals allowed. The combination of a competitive rate, unlimited additional deposits, and a mild EWP makes the 60-month an excellent safe harbor for funds: while you wait for rates to start rising, your investment is earning a much higher rate than currently offered by any online savings account. When rates do start to climb and an APY higher than 2.02% appears, the 90-day EWP won’t impose much of a hardship.
Availability
Headquartered in Alexandria, Virginia, Democracy Federal Credit Union’s field of membership (FOM) is primarily community-based, with individuals who live, work, worship, attend school, or regularly conduct business in the following locations eligible to join.
Washington, D.C. – all areas of the city.
Maryland – most areas of Prince George’s County and Montgomery County.
Virginia – most areas of the City of Alexandria, Arlington County, and Fairfax County.
Individuals who live in the D.C. metro area or Philadelphia and work for any of the following governmental agencies also qualify for membership: Department of Health & Human Services, Department of Education, Social Security Administration, Federal Energy Regulatory Commission, and Food & Drug Administration.
Faculty, employees, and registered students enrolled in a program leading to a degree or certificate at Gallaudet University are eligible for membership.
Individuals who “are related to a current Democracy Federal Credit Union member” are welcome to apply. There is no definition of “are related to” provided on Democracy FCU’s website.
Joining Democracy FCU can be done online. According to the COVID-19 Resource Center page only two of five branches are currently open: the Alexandria (VA) branch lobby is open to walk-in traffic (appointments available), with the District Heights (MD) branch lobby open by appointment only. Scheduling an appointment can be done online or by calling the branch.
While checking and savings accounts can be opened online, an IRA Share Certificate must be opened in-branch or over the phone.
A minimum deposit of $5 along with a one-time $10 membership fee is required to open a new account.
Democracy FCU participates in both the CO-OP Shared Branch and ATM networks.
Credit Union Overview
Democracy Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 1.07% (excellent) based on June 30, 2021 data. In the past year, Democracy FCU has increased its total non-brokered deposits by $8.39 million, an excellent annual growth rate of 5.83%. Please refer to our financial overview of Democracy Federal Credit Union (NCUA Charter # 1407) for more details.
Chartered in 1936 as the Social Security Employees Federal Credit Union, Democracy Federal Credit Union has rebranded four times, with the Democracy name debuting in 2015. Through most of the credit union’s 85-year history, the FOM was exclusive to the employees of several federal governmental agencies. About 15 years ago, the FOM began to expand, including the residents of the Washington D.C. metro area. Democracy Federal Credit Union is currently the 39th largest credit union headquartered in Virginia, with more than 13,500 members and assets in excess of $177 million.
How the IRA Share Certificates Compare
When compared to the similar length-of-term IRA Certificates tracked by DepositAccounts.com that require a similar minimum deposit and are available within the FOM, all of Democracy Federal Credit Union's IRA Share Certificate APYs currently rank first.
The above information and rates are accurate as of 11/19/2021.
To look for the best IRA CD rates, both nationwide and state-specific, please refer to our IRA Rates Table page.
