Dept of Commerce Federal Credit Union Ups 24-35 Month CD Rates
Following a recent 37 bps rate increase, the Department of Commerce Federal Credit Union (DOCFCU) 24-35 month CD (4.61% APY, $500 minimum deposit) currently offers the highest APY for nationally available 3-year CDs. Initial deposits of $25k or more receive an additional 10 bps; there is no stated balance cap.
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 24-35 month CD can be compared to either a 2-year or 3-year CD. Interestingly enough, the 24-35 month CD compares more favorably to 3-year CDs than it does to 2-year CDs.
The 24-35 month CD also available as an IRA CD (Traditional, Roth, CESA), earning the same APYs with the same deposit requirements.
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 24-35 month CD with at least $25k, the CD would earn an impressive 4.96% 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.
According to the CDs & Savings page, the Early Withdrawal Penalty reads 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.
Funding and Maturing Funds
CSR stated the easiest way to fund a CD is through an internal transfer of funds. DOCFCU participates in the CO-OP Shared Branch network, enabling a relatively easy transfer of outside funds into a DOCFCU savings account. The “Share Certification Application” form for existing members asks where the funds are to come from.
Withdrawal [of funds] From: Savings, Checking, Money Market
Earned dividends can be added to the CD principal or transferred to a DOCFCU savings or checking account. Maturing funds will be distributed by check or transferred to a DOCFCU savings or checking account. There is a ten day grace period before a CD automatically renews.
Unlimited beneficiaries (equal shares) can be designated, with Social Security numbers required for all named beneficiaries.
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.
Customer/Member Service
Several recent DA reviews have reported problems with DOCFCU's customer service. Readers had trouble connecting to a CSR, and once connected, the CSRs weren't able to answer important CD questions. Caveat emptor.
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 can be done online, with an option to join ACC as part of the DOCFCU membership application. (Note: there’s a “Become a Member” on the upper right-hand corner of every page of DOCFCU’s website).
Joining DOCFCU and/or opening a CD can also be done in-branch. As stated on the COVID-19 & DOCFCU page,
HCHB & Silver Spring Branches are open Monday – Friday 8:30 AM – 3:30 PM
Effective August 30, 2021 all Visitors must complete a Vaccine Attestation form for entry in Commerce faculties. Forms are available at the guards desks.
Our White House Branch remains closed until further notice
As stated in the FAQ section on the CDs & Savings page,
How do I open a Certificate of Deposit?
Click here to request a CD or give us a call at 202.808.3600.
The Share Certificate Application is more of a “Contact Me” form than an actual application and can only be used by existing members.
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.
Credit Union Overview
Department of Commerce Federal Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 4.67% (excellent) based on Se[tember 30, 2022 data. In the past year, DOCFCU has increased its total non-brokered deposits by $138.71 million, an excellent annual growth rate of 29.19%. 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 the recent change to a “easy membership” charter has the power to increase the membership exponentially. Currently the District’s third largest credit union, DOCFCU has more than 30,000 members and assets in excess of $838 million.
How the 24-35 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 24-35 month CD. The following table compares the 24-35 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 12/5/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
https://www.docfcu.org/wp-content/uploads/rates_currentforDOCfcu-12-5-2022.pdf
https://www.cbtno.com/
I'm not surprised to see rates go down at some FI's today given the big decline in treasury rates last week. The 10 year treasury has declined from 4.2% to 3.5% over the past month or so as an example.
I want to see one of the big online banks like capital one / AMEx/ Discover/ Barclays drop their 60 month CD's from 4.25...then all hell will break loose, people will start jumping out of windows and panic in the streets. (those of us dummies that are still waiting) Gotta love the thrill of this rate chase gamble though lol.
I am watching the rates on the 5 year at the big banks that you mentioned like a hawk. I'm hoping that 5 year and long term cd rates are just taking a breather before another leg higher but that remains to be seen. Hopefully AMEX, Discover, Barclays and Sallie Mae's rates jump into the end of the year following the next rate hike (finger's crossed).
My goal was 4.5% on 5 year cd's but I haven't pulled the trigger yet. I guess maybe I'm getting greedy and hoping for that 5% level. I'm just not sure how much higher (if any) the 5 year cd's will go even with 100bps more of rate hikes? Like you mentioned we'll probably see more action in the short term cd's unfortunately. You can go out 10 years with Discovery so there's always that:)
I did see that the WSJ's Fed Whisperer Nick Timiraos is out with a piece today titled "Fed To Weigh Higher Interest Rates Next Year While Slowing Rises This Month." It's actually a pretty decent read:
https://www.wsj.com/articles/fed-could-pencil-in-higher-interest-rates-next-year-while-slowing-hikes-in-december-11670208857
Same boat as you except my long term outlook has changed a bit. 4.5 % came and went and so did 5%. I had multiple chances to jump in but i was waiting for 5.5/6.
Now i think if i get another chance at 5%/5 years, i'm gonna go all in and not look back. Like many others have said, nobody can predict the future and there are so many moving parts. Seems like these days, anything can happen and long term CD rates are not following any logical trendline with the FFR(at least these last 2-3 weeks). I think at the end of the day i'll be happy with 5% regardless of what comes next.
If the long term yields don't make it back up, I'll have to settle for the current 5 year 60 month rates which are still VERY good all things considered. I mean, i was drooling over a 3.5% 60 month CD over the summer. It's all relative. I'm waiting but also watching like a HAWK. Good to know there are others in the same boat and on top of it as well on here.
Well then speaking of what else you haven't seen in the past 40 years. But that's just market noise, right?
"Spread on 2- and 10-year Treasury yields shrinks past minus 80 basis points, remains at most inverted level in 41 years"
I’m posting because I did manage to get a long term high rate at commerce FCU - 4.8 apy for a 5, 6, and 7 year CD. It was an ordeal, but it actually happened so it is possible.
The reason I’m posting and the important thing to know is that they are honoring the rate when you opened your account. The rate when I opened my account was 4.7, but if you put more than $25,000 into a CD they give you an extra 0.1%.
So Outtempster, I think you should be able to get the higher rate.
I opened my account online on 11/29, and it wasn’t until the afternoon of 12/6 that I was able to get the CDs, so that tells you some thing.
BAD NEWS: I applied online for new accounts with DOCFCU about 3 weeks ago, and got an email acknowledgement the very next day that they had my application pending. So far, so good. And then after that, NOTHING for two weeks. Then began calling by phone, and hard to get any meaningful answers, other than that they were busy with a crush of applications because of their good rates. Multiple insistent calls on my part seeking the actual status of my application ensured... Then finally this week, I got thru directly to a rep in their new accounts section, and they had my accounts opened within the next day.... almost 3 weeks after my original application.
GOOD NEWS: In finally talking directly with the new accounts rep, without me even having to ask or say anything, she noted that they had lowered their CD rates lately more than a week after they had received my application, and thus now would be honoring the higher CD rates in effect at the time of my original application for the CDs I'm opening with them now... That's an honorable, decent thing to do, under the circumstances, so they get points for that....
Thus, the key word with DOCFCU right now, I'd say, is PERSISTENCE. And unfortunately, the frontline reps who answer their customer service calls basically know nothing about where applications stand in the review process, and, in my experience, it's hard, but possible, to get them to put you in touch directly with the reps that do handle new applications.
fyi, I learned in discussions with DOCFCU staff that they'll only apply that additional 0.10% rate bump if you put at least $25K into a SINGLE CD with them.
If you put a total of $25K or more into new CDs with them but divide your funds into several smaller amount CDs that meet the $25K total, then they will NOT add the 0.10% rate boost.
Not sure I understand the sensibility or rationale of that approach (after all, you're still putting $25K+ of new money into CDs with them), but that is their policy, and they're sticking to it.
But as Katie77 noted above, DOCFCU does in fact honor their promise of honoring their CD rates in effect at the time you originally to open a new account/accounts with them, which is a good feature.