Dept of Commerce Fed Credit Union Has Across-The-Board CD Rate Increases
Seven months ago, District of Columbia-based Department of Commerce Federal Credit Union (DOCFCU) became an ‘Easy Membership Requirement” credit union and subsequently upped its CD APYs to rate-leading levels. Although those outstanding APYs were short-lived, DOCFCU CDs became competitive again this fall.
Following across-the-board CD rate increases (16-32 bps) last week, the 36-47 month and 60-84 month now offer the most competitive CD rates. Although the higher CD rates are not listed on the DOCFCU Rates page, the Certificates of Deposit page states,
Open an account with a minimum deposit of $25,000 and receive an additional 0.10% APY
The CDs (with the exception of the 6-11 month) are also available as IRA CDs (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 60-84 month CD with at least $25k would result in an impressive 5.05% APY.
According to 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.
As stated on 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 no partial withdrawals allowed.
Funding and Other Particulars
- Funding – ACH or Shared Branch transfer (more details in the Availability section).
- CO-OP Shared Branch Network – Yes.
- Dividends – compounded/credited monthly and can be deposited into a DOCFCU checking or savings account.
- Maturing Funds – Cashier’s check or internal transfer to a DOCFCU checking or savings account.
- Grace Period – 10 calendar days before automatic renewal.
- Beneficiaries – Unlimited, equal shares, Social Security numbers required.
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 residency status) by joining the American Consumer Council (ACC).
In addition, individuals who live, work, worship, or attend school in the District of Columbia are also eligible to join.
Employees of the U.S. Department of Commerce or NOAA (and its 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 online membership application. (FYI – there’s a “Become a Member” at the top of every DOCFCU website page.)
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
Opening a Regular Share Savings with a minimum $5 deposit establishes a DOCFCU membership.
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.
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
In addition to participating in the CO-OP Shared Branch network, DOCFCU is also a member of 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 2.68% (excellent) based on June 30, 2022 data. In the past year, DOCFCU has increased its total non-brokered deposits by $130.38 million, an excellent annual growth rate of 27.36%. 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 19,300 members and assets in excess of $666 million.
How the 36-47 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 36-47 month CD. The following table compares the 36-47 month CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
| APY | CD Term (Early Withdrawal Penalty) | Credit Union/Bank |
|---|---|---|
| 4.67% | 36-47 Month CD, $25k min (EWP=180 days) | Department of Commerce Federal Credit Union |
| 4.61% | 36-Month CD, $500 min (EWP=180 days) | Pelican State Credit Union |
| 4.60% | 36-Month CD, $500 min (EWP=365 days) | CFG Bank |
| 4.57% | 36-47 Month CD, $500 min (EWP=180 days) | Department of Commerce Federal Credit Union |
| 4.55% | 36-Month CD, $25k min (EWP=180 days) | Merrick Bank |
| 4.50% | 36-Month Share CD, $1k min (EWP=the lesser of all earned dividends or 180 days) | Alliant Credit Union |
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, only one credit union has a higher rate 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.
| APY | CD Term (Early Withdrawal Penalty) | Credit Union/Bank |
|---|---|---|
| 4.97% | 60-Month CD, $500 min (EWP=270 days) | Pelican State Credit Union |
| 4.80% | 60-84 Month CD, $25k min (EWP=180 days) | Department of Commerce Federal Credit Union |
| 4.75% | 60-Month CD, $25k min (EWP=270 days) | Merrick Bank |
| 4.75% | 5-Year Bread Savings CD, $1.5k min (EWP=365 days) | Bread Financial |
| 4.70% | 12-23 Month CD, $500 min (EWP=180 days) | Department of Commerce Federal Credit Union |
| 4.42% | 5-Year Fixed CD, $500 min (EWP=600 days) | Lafayette Federal Credit Union |
The above information and rates are accurate as of 11/21/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
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