When I wrote about Direct Federal Credit Union’s (Direct Federal) 21-month Jumbo CD and 21-month CD ten months ago, the rates (1.65% and 1.60% APY, respectively) were quite competitive. Almost a year later, those same CDs have APYs 90 bps higher. The Jumbo CD requires a $100k minimum deposit, with the regular CD requiring a low $250 opening deposit.
|2.55%||$100k||-||Direct Federal Credit Union||21 Month Jumbo CD|
|2.50%||$250||-||Direct Federal Credit Union||21 Month CD|
Both versions of the CDs are available as IRAs (Traditional) earning the same APYs, with the same funding requirements.
|2.55%||$100k||-||Direct Federal Credit Union||21 Month Jumbo IRA|
|2.50%||$250||-||Direct Federal Credit Union||21 Month IRA|
As stated on Direct Federal’s Certificate Account Application, the Early Withdrawal Penalty reads as follows:
If the term is one year or more, the member shall forfeit an
amount equal to 90 days of dividends on the entire principal balance.
Rate Riser Money Market Account
For a limited time, Direct Federal is offering a new Rater Riser Money Market account, which is structured to avoid “the stress of the stock market while still earning an above average interest rate.” The initial rate is 1.50% APY, and will increase by 25 bps on July 1, 2018 (1.75% APY), October 1, 2018 (2.00% APY), and January 1, 2019 (2.25% APY), for a blended APY of approximately 1.875% for the first year. After March 31, 2019, the APY may change monthly at the Credit Union's discretion.
The Rate Riser MMA can be opened with a $500 minimum deposit of new money, but balances less than $25k do not earn any interest. If the balance should fall below $25k for any day during the month, no interest will be earned for that dividend period. Direct Federal reserves the right to limit deposits made after June 30, 2018.
Headquartered in Needham, Massachusetts, Direct Federal Credit Union's field of membership (FOM) is primarily residency-based, with individuals who live, work, worship, or attend school in Norfolk County, Massachusetts eligible to join.
Immediate family members (spouse, child, parent, sibling, grandparent, grandchild, stepmother, stepfather, stepchild, stepsister and stepbrother) of current Direct Federal members are eligible for membership.
In addition, immediate family members of membership-eligible individuals also qualify to join.
Joining Direct Federal Credit Union and/or opening a CD or Rate Riser Money Market account can be done online, or at the sole Massachusetts branch located on Cabot Street in Needham. The Certficate Account Application can also be downloaded and returned by mail.
Credit Union Overview
Direct Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.96% (excellent) based on December 31, 2017 data. In the past year, Direct Federal has increased its total non-brokered deposits by $7 million, an above average annual growth rate of 1.75%. Please refer to our financial overview of Direct Federal Credit Union (NCUA Charter # 9071) for more details.
Founded in 1953, Direct Federal Credit Union is currently Massachusetts’ 16th largest credit union, serving nearly 28,000 members and holding assets in excess of $606 million. Over the past three years, Direct Federal grew by two to three times the industry average, with 2017 seeing an 18% growth rate. Based on those statistics, it’s no wonder the Boston Business Journal named Direct Federal the "fastest growing credit union" in Massachusetts.
How the CDs Compare
When compared to the 371 similar length-of-term CDs tracked by DepositAccounts.com available within the FOM, Direct Federal Credit Union's 21-Month Jumbo CD and 21-Month CD APYs currently rank first and fourth respectively, regardless of minimum deposit.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.55% APY||21-Month Jumbo CD ($100k min)||Direct Federal Credit Union|
|2.51% APY||2-Year CD ($5k min)||Colorado Federal Savings Bank|
|2.50% APY||21-Month CD ($250 min)||Direct Federal Credit Union|
To look for the best CD rates, both nationwide and in your state, please refer to our CD Rates Table page.
How the Rate Riser MMA Compares
When compared to the Money Market accounts tracked by DepositAccounts.com available within the FOM, Direct Federal Credit Union's Rate Riser Money Market account blended APY currently ranks first.
|Interest Rate||Account Name||Credit Union/Bank|
|1.875% APY||Rate Riser Money Market ($25k min)||Direct Federal Credit Union|
|1.80% APY||High Rate Online Money Market ($5k min)||Bank 7|
|1.75% APY||Money Market Account ($100 min)||CIT Bank|
The above rates are accurate as of 4/5/2018.
To search for the best Money Markets rates, both nationwide and state-specific, please refer to our Money Market Rates Table page.