For the past few months, rising rates have been prevalent in short-term CDs, with long-term CD rates remaining stagnant. EFCU Financial (EFCU) is one of the few credit unions that has recently raised the rate on a long-term product: 84-month Super 7 Variable Rate CD (2.75% APY). The minimum opening deposit is $500, with no stated deposit cap.
As stated on EFCU's Rates sheet,
The Dividend Rate is established by a margin of a negative one point five percent (-1.5%) to the index. The index used to establish the rate is the Prime Rate reported by the Federal Reserve. The rate will be adjusted every six (6) months.
The Prime Rate has traditionally been set 3 percentage points above the federal funds rate. As noted by the Federal Reserve, it does not set the Prime Rate, but it does report the Prime Rate posted by the majority of the largest twenty-five banks. Currently, the Prime Rate, as reported by the Federal Reserve, is 4.25%.
EFCU has been offering the 84-month CD for nearly two years, with three rates increases during that time. The current 2.75% APY is 100 bps higher than its initial rate.
According to CSR, the Early Withdrawal Penalty is six months interest, which is negligible, considering the CD's term length. It could also provide an “easy out” should the Prime Rate experience a detrimental change. Using DA’s Early Withdrawal Penalty Calculator, you can determine the effective yields, on a month-by-month basis. For example, assuming the 2.75% APY remains constant, closing the 84-month CD at 24 months results in an effective yield of 2.09%.
Headquartered in Baton Rouge, Louisiana, EFCU Financial’s field of membership (FOM) is residency-based, with individuals who live, work, worship, or attend schools in the Louisiana parishes of Ascension, East Baton Rouge, East Feliciana, Feliciana, Livingston, Point Coupee, St. Helena, West Baton Rouge, or West Iberville qualify for membership.
Immediate family (spouse, parent, grandparent, child, grandchild, and sibling) or household members of current EFCU members are also eligible to join.
Joining EFCU can be done online or at any of seven Louisiana branches located in Baton Rouge (3), Dedham, Gonzales, Prairieville and Zachary. Opening a Super 7 Variable Rate CD requires an in-person visit to any of the branch locations.
Credit Union Overview
EFCU Financial has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 1.52% (excellent) based on March 31, 2017 data. In the past year, EFCU has increased its total non-brokered deposits by $46.23 million, an excellent annual growth rate of 15.92%. Please refer to our financial overview of EFCU (NCUA Charter # 13) for more details.
In 1937, more than 175 Stanocola Processing Plant employees formed the Stanocola Processing Employee’s Federal Credit Union, with an initial deposit of $941.70. As the ownership of the Plant changed (finally owned by Exxon), so did the Credit Union’s name, with a total of five name changes between 1949 and 1994. In the early 2000s there were several mergers, including EXCO FCU in 2003 - the largest credit union merger in Louisiana history. Following a change to a community charter in 2007, the Credit Union experienced its largest growth spurt. The EFCU (Exxon Federal Credit Union) Financial name was adopted in 2015, and today, EFCU is Louisiana’s sixth largest credit union, with more than 38,000 members and assets in excess of $387 million.
How the Super 7 Variable Rate CD Compares
When compared to the similar length of term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available within the FOM, EFCU Financial's 84-Month Super 7 Variable CD APY currently ranks first.
The above rates are accurate as of 7/26/2017.