In June, Energy Credit Union (Energy CU) hiked the rate on its 24-month CD (2.02% APY) by 102 bps. The minimum opening deposit is $1k, with no stated deposit cap. The 24-month CD is also offered as an IRA (Traditional, Roth, CESA) earning the same APY, with the same funding requirements.
|2.78%||$1k||-||Energy CU (MA)||24 Month CD|
|2.78%||$1k||-||Energy CU (MA)||24 Month IRA (Traditional, Roth, CESA)|
The 24-month CD was introduced in 2011, at an initial rate of 1.31% APY. For nearly three years, the CD’s rate slowly drifted downward, settling at 0.70% APY, where it remained until May 2015. Prior to last month’s 102 bps increase, the rate had remained steady at 1.00% APY for 18 months.
My initial response to this rate increase was quite favorable, but was tempered by the small membership (4,258) and correspondingly small assets ($79.8 million). What finally swayed me was the Credit Union's growth potential: with a total population of more than two million in Norfolk, Suffolk, and Middlesex Counties, Energy CU could easily experience a substantial growth spurt by offering such a competitive CD.
As stated in the Truth In Savings Disclosure, the Early Withdrawal Penalty reads as follows:
If the maturity date is more than one (1) year from the date of issuance
or renewal, the penalty is an amount equal to 90 days dividends.
Thanks to DA reader, Carpline, for his Forum post about this deal.
Headquartered in West Roxbury, Massachusetts, Energy Credit Union’s field of membership (FOM) is primarily residency based, with individuals who live or work in the Massachusetts counties of Norfolk and Suffolk eligible to join.
Those who live or work in the following Middlesex County communities also qualify for membership: Bedford, Billerica, Belmont, Burlington, Lincoln, Lexington, Newton, Waltham, Watertown, Weston, and Woburn.
Employees and retirees of National Grid New England (including retirees of KeySpan and Boston Gas) are eligible for membership.
Family members of membership-eligible individuals are also welcome to apply.
Joining Energy Credit Union and/or opening a CD can be in person at the sole branch located on Spring Street in West Roxbury. To expedite the process, Member Services (617.325.1999) can send a membership application upon request.
Credit Union Overview
Energy Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 0.92% (excellent) based on March 31, 2017 data. Energy CU has an excellent capitalization level (19.08%), the resulting of holding $79.77 million in assets with $15.22 million in equity. Please refer to our financial overview of Energy Credit Union (NCUA Charter # 66369) for more details.
Founded in 1931 for the benefit of public utilities employees, Energy Credit Union is currently Massachusetts’ 61st largest credit union. For each of the past 19 years, Energy CU has awarded four scholarships, including the William C. Reynolds Memorial Scholarship, to Credit Union members who have just graduated from high school or are enrolled as an undergraduate at an accredited school.
How the CD Compares
When compared to the 378 similar length of term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available within the FOM, Energy Credit Union's 24-month CD APY currently ranks first.
The above rates are accurate as of 7/20/2017.