At the beginning of the month, ELGA Credit Union (ELGA) unveiled four Promotional CDs, two of which are competitive: 65-month (3.10% APY) and 55-month (2.90% APY). All the Promotional CDs require a $5k minimum deposit, with no stated balance cap.
|3.10%||$5k||-||ELGA Credit Union||65 Month CD Promotional CD|
|2.90%||$5k||-||ELGA Credit Union||55 Month CD Promotional CD|
As stated in the Rates and Service Charges document, the Early Withdrawal Penalty (EWP) reads as follows:
The amount of the early withdrawal penalty is
90 days dividends calculated on the principal amount.
A 90-day penalty is a very mild EWP, making the 65-month Promotional CD even more attractive. Using DA’s Early Withdrawal Penalty Calculator, you can see what the effective yields would be on a month-by-month basis. For example,
- 2.92% APY – closed at 4 years
- 2.86% APY – closed at 3 years
- 2.72% APY – closed at 2 years
- 2.60% APY – closed at 18 months
- 2.33% APY – closed at 1 year
Headquartered in Burton, Michigan, ELGA Credit Union’s field of membership (FOM) is primarily residency based, with individuals who live, work, worship, volunteer, or attend school in the Michigan counties of Genesee, Lapeer, Livingston, Oakland, Saginaw, and Shiawassee eligible to join.
Employees and retirees of several companies and organizations (including State of Michigan government agencies) also qualify for membership.
Immediate family members of current ELGA members are also eligible. Complete membership details are available on the Who Can Join page.
As I was reading through the list of the various ways to join ELGA, the last line caught my eye.
Any person making a $25.00 donation to the Salvation Army Bed and Bread Program.
Unfortunately, the next line reads, “this option not available for online account opening.” So, while this easy membership requirement excludes out-of-state applicants, residents of nearby counties have a fairly easy route to membership.
ELGA Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.64% (excellent), based on September 30, 2017 data. In the past year, ELGA has increased its total non-brokered deposits by $61.43 million, an excellent annual growth rate of 15.39%. Please refer to our financial overview of ELGA Credit Union (NCUA Charter # 61797) for more details.
Founded in 1968, ELGA Credit Union is currently Michigan’s 22nd largest credit union, with more than 68,200 members and assets in excess of $554 million. ELGA assumed the assets, shares, and loans of the NCUA liquidated Valley State Credit Union in April 2017, in addition to giving VSCU’s 2,715 members a new home. In October, ELGA was named a “Crystal Performance Award” winner by Raddon, a Fiserv company and provider of research, analysis and strategic guidance to financial institutions. According to a Credit Union Times article,
The winners, according to press release represent the top three percent of more than 500 credit unions analyzed by Raddon over the past year.
Award recipients announced at the Raddon CEO Forum, received their selections based on an in-depth analysis of financial statements, sales figures, service metrics and member relationship data. The awards divided into two categories based on asset size.
How the Promotional CDs Compare
When compared to 214 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available within the FOM, ELGA Credit Union’s 65-month and 55-month Promotional CD APYs currently rank first and third, respectively.
The above rates are accurate as of 3/6/2018.