Dept of Commerce Fed Credit Union 12-23 Month CD Rate Shoots Upward

Following a significant 90 bps rate increase this week, the Department of Commerce Federal Credit Union (DOCFCU) 12-23 month CD earns tiered APYs of 5.24% ($500 minimum) and 5.34% APY ($25k minimum). The 5.34% APY is currently the highest rate offered on nationally available 2-year CDs.

DOCFCU’s unique term-length structure can be a bit confusing when trying to make a valid comparison. Depending on the term-length chosen, the 12-23 month CD can be compared to either a 1-year or 2-year CD. Interestingly enough, the 12-23 month CD compares more favorably to nationally available 2-year CDs than it does to nationally available 1-year CDs.

The 12-23 month CD is also available as an IRA CD (Traditional, Roth, CESA), earning the same APYs with the same deposit requirements.

Although the 60-84 month CD rate remains unchanged, the 4.67% APY ($500) and 4.77% APY ($25k) outpace the rates currently offered on nationally available 6-year and 7-year CDs.

As DA reader, User, noted in a Forum post about the 60-84 month CD,

In my opinion this is one of the best deal on long term CD, taken the penalty to break it is only 180 days.

Relationship Rewards

DOCFCU’s Relationship Rewards program awards points for services and balance levels. The points add up to free benefits like higher yields on certificates, with Bronze Members receiving an additional 5 bps, Silver Members receiving an additional 10 bps, and Gold Members receiving an additional 25 bps. In addition to the Relationship Rewards levels, initial deposits of $25k or more receive an additional 10 bps.

For example, if you are Gold Member opening a 12-23 month CD with at least $25k, the CD would earn an impressive 5.59% APY.

As stated in the fine print on the Relationship Rewards page,

All benefits and reward levels are subject to change. Member points will automatically be evaluated monthly for upgrades to higher levels. Once a member has established a reward level, they qualify for that level until the end of the year. New reward levels will be classified November 30th of each year and effective the beginning of the year. All transactions are per month unless otherwise stated.

Early Withdrawal Penalty

The Early Withdrawal Penalty (EWP) is no longer listed on the DOCFCU website. According to CSR, the EWP has not changed and is as follows,

If you withdraw funds from the CD prior to its maturity date, you will incur a penalty. CDs with maturities between 6 and 11 months will incur a 90-day interest penalty. The interest penalty for certificates of deposit with maturities between 12 and 84 months is 180 days.

CSR confirmed that only an early closure is possible, with partial withdrawals not allowed.

Excess Share Insurance

DOCFCU offers its members the protection provided by the Excess Share Insurance, the nation’s largest provider of excess share insurance since 1993.

To further protect our members’ deposits, we provide the highest combination of federal/private share savings deposit insurance available: $500,000, which includes savings accounts, checking accounts, money market accounts and certificates of deposit.

Availability

Headquartered in Washington, D.C., Department of Commerce Federal Credit Union’s field of membership (FOM) includes an easy membership requirement for all U.S. citizens and residents aliens (regardless of where they live) by joining the American Consumer Council (ACC).

In addition, individuals who live, work, attend school, or worship in the District of Columbia are also eligible to join.

Employees of the U.S. Department of Commerce or NOAA (and affiliates) also qualify for membership, as do the employees of the White House Management and Administration Office, and the Executive Office of the President.

Family members and household members of current DOCFCU members are also welcome to apply.

Joining DOCFCU and/or opening a CD can be done online, over the phone, or at the Constitution Avenue branch (Washington, D.C.) or the Silver Spring (MD) branch. The White House Branch continues to be "temporarily closed."

Opening a Regular Share Savings with a minimum $5 deposit establishes a DOCFCU membership.

DOCFCU participates in the CO-OP Shared Branch network, as well as the MoneyPass and Allpoint ATM networks.

Account Opening

Funding and Other Details

The following information is from a conversation with CSR.

• Funding – ACH, wire, internal transfer, or CO-OP Shared Branch transfer.*
• CO-OP Shared Branch Member – Yes.
• Ownership – Individual, joint, or trust.
• Maturing Funds – Cashier’s check to address on file or transferred into a DOCFCU savings or checking account.
• Dividends – Compounded/credited monthly and can be transferred to a DOCFCU savings or checking account.
• Grace Period – 10 calendar days before automatic renewal.
• Beneficiaries – Unlimited, equal shares, Social Security numbers required.
• Credit Check – Soft pull.

*Quoting User’s Forum post again,

Per my conversation with CSR, It would work best to open CD over the phone rather than online, There is an option to fund a CD with multiple external accounts no max limits via ACH initiated by DOCFCU no transaction fees. A customer to complete and sign a simple ACH transfer form via DocuSign for each transaction. My understanding is that a customer may request DOCFCU to guarantee the rate at the time of funding. This is something that CSR told me, but I didn’t see anything online in writing. So I would think it’s best to call to verify the above information.

Historically DOCFCU doesn’t hold high CD rates for too long.

Credit Union Overview

Department of Commerce Federal Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 8.16% (excellent) based on March 31, 2023 data. In the past year, DOCFCU has increased its total non-brokered deposits by $157.33 million, an excellent annual growth rate of 32.09%. Please refer to our financial overview of Department of Commerce Federal Credit Union (NCUA Charter # 16410) for more details.

Department of Commerce Federal Credit Union was established in 1932 for the benefit of the employees of the Department of Commerce. In 2005, DOCFCU expanded its FOM to “adopt” the city of Washington, D.C., giving its more than 571,000 residents the opportunity to join. The 2015 merger with the White House Federal Credit Union instantly increased the number of members, but last year's change to an “easy membership” charter has the power to increase the membership exponentially. Currently the District’s second largest credit union, DOCFCU has nearly 31,000 members and assets in excess of $849 million.

How the 12-23 month CD Compares

When compared to 2-year CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $25k or less, no banks or credit unions have higher rates than currently offered on the Department of Commerce Federal Credit Union 12-23 month CD. The following table compares the 12-23 month CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.

How the 60-84 month CD Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $25k or less, no banks or credit unions have higher rates than currently offered on the Department of Commerce Federal Credit Union 60-84 month CD. The following table compares the 60-84 month CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.

The above information and rates are accurate as of 6/9/2023.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.