Farmers Insurance FCU Has Nationally Available Rate-Leading CDs
For a limited time, California-based Farmers Insurance Federal Credit Union (FIGFCU) is offering nine Flex-Term Certificates, all of which earn 5.00% APY. The nine Flex-Term Certificates have terms from 3 months to 60 months. Due to the inverted yield curve that exists today, 5.00% isn't that competitive for the short-term CDs, but it's a top APY for 48- and 60-month terms. The minimum opening deposit is $1k of new money, with no stated balance cap. As stated on the Flex-Term Certificate landing page,
Deposit must be new funds to the Credit Union and may not be transferred or withdrawn and deposited back into the Credit Union from any existing Credit Union account.
CSR stated that “generally any money that has been deposited within 14 days of opening a Certificate” is considered to be new money.
The Flex-Term Certificate landing page also states,
“Flex-Term” Bonus Dividend may not be combined with any other dividend increase/bonus; i.e. “Direct Deposit Bonus” and “Jumbo Certificate” increased rates.
Early Withdrawal Penalty
As stated in the Truth-in-Savings document (page 29), the Early Withdrawal Penalty reads as follows:
6. In the event of an early withdrawal which reduces the principal balance below the minimum balance, the account will be cancelled and the penalty imposed on the entire principal balance.
7. In the event of an early withdrawal which does not reduce the principal balance below the minimum required, the penalty will be imposed only upon the amount withdrawn and the account need not be cancelled.
8. Penalties are imposed on the following basis:
a. A forfeiture of dividends equal to one half of the remaining term of the account’s daily dividends on the amount withdrawn, or 90 days of dividends on the amount withdrawn, whichever is greater, if the minimum term is one year or less, or
b. A forfeiture of dividends equal to one half of the remaining term of the account’s daily dividends on the amount withdrawn, or 180 days of dividends on the amount withdrawn, whichever is greater, if the minimum term is more than one year.
Availability
Headquartered in Burbank, California, Farmers Insurance Federal Credit Union’s field of membership (FOM) has expanded and now offers membership to all U.S. citizens/resident aliens through membership in the American Consumer Council (ACC). Joining FIGFCU and ACC can be done simultaneously using the FIGFCU online membership application.
Membership is also offered to Farmers Insurance employees and Farmers Insurance agents or agents' employees.
Immediate family and household members of a current FIGFCU member or employee are also welcome to apply.
Account Opening
Joining Farmers Insurance Federal Credit Union and/or opening a Flex-Term Certificate can be done online or at any of the ten full-service branches located in Arizona, California (2), Kansas (2), Michigan (2), Oklahoma, Texas, and Washington. Appointments are available and can be scheduled online.
Membership Savings account [$5 minimum deposit] required for Credit Union membership. After 6 months, you must maintain a minimum $250 balance or open any other type of account to avoid a $5 monthly service fee.
FIGFCU participates in both the CO-OP Shared Branching and ATM networks and provides an ATM and Shared Branch locator.
Funding and Other Particulars
The following information is from a Live Chat with CSR.
- Funding – ACH, wire, shared branch transaction.
- Ownership – Individual, joint, or trust.
- CO-OP Shared Branch Network – Yes.
- Dividends – Compounded/credited monthly; cannot be withdrawn without penalty.
- Maturing Funds – ACH, wire, check, or internal transfer,
- Grace Period – 7 calendar days before automatic renewal.
- Beneficiaries – Unlimited with equal shares; Social Security numbers required.
- Credit Check – ChexSystems.
Credit Union Overview
Farmers Insurance Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 6.54% (excellent) based on June 30, 2023 data. In the past year, FIGFCU increased its total non-brokered deposits by $51.86 million, an excellent annual growth rate of 5.95%. Please refer to our financial overview of Farmers Insurance Federal Credit Union (NCUA Charter #1074 ) for more details.
Established in 1936 as the Farmers Insurance Group Federal Credit Union (FIGFCU), the original FOM included Farmers Insurance Group agents and employees. The current open charter (easy membership requirement through the American Consumer Council) has been in place for less than a year. Currently the 44th largest credit union headquartered in California, with more than 61,000 members and assets in excess of $1.4 billion.
How the 48-Month and 60-Month Flex-Term Share Certificates Compare
When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationwide and have minimum deposit requirements of $10k or less, no banks or credit unions have higher rates than currently offered on the Farmers Insurance Federal Credit Union 48-month and 60-Month Flex-Term Share Certificates. The following table compares the Flex-Term Share Certificates to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 9/21/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
