FedChoice Federal Credit Union Offers Competitive CD Rates

Checking Accounts

FedChoice has four checking accounts, any of which qualify for the Earn More extra bps.

High Yield Checking – rewards checking account, 3.00% APY up to $10k
Premium Checking – 0.15% APY, requires $1.5k balance to earn stated APY
Cash Back Checking – 0.50% on debit card purchases up to $25 per month, with check writing available
Debit Account – 0.50% on debit card purchases up to $25 per month, no check writing

11-Month High-Yield CD Special

Now through June 30, 2023, Fed Choice is offering a 11-Month High-Yield CD Special earning 5.25% APY. The minimum opening deposit is $500 of new money and is capped at $500k. New money is defined as funds “not on deposit at FedChoice in the last 30 days.” The Earn More extra 25 bps are not available on the 11-month High-Yield CD Special, even “if the account has an associated checking account.” There is a limit of one 11-Month High-Yield CD Special per member.

As stated on the Truth in Savings (TIS) disclosure (page 22 of the Membership Agreement), the Early Withdrawal Penalty reads as follows:

The penalty schedule is as follows:

Terms of 6 months to 12 months – 90 days’ dividends

Terms of 49 to 60 months – 450 days’ dividends

If the account has not yet earned enough dividends or if the dividends have already been paid, the penalty will be deducted from the principal.

Excess Share Insurance

Deposits at FedChoice are fully insured up to $500,000.

Your savings are insured up to $500,000. The first $250,000 per member is insured by the National Credit Union Association (NCUA), a U.S. Government Agency, with an additional $250,000 of coverage provided by Excess Share Insurance Corporation (ESI), a private corporation.

Availability

Headquartered in Lanham, Maryland, FedChoice Federal Credit Union significantly expanded its field of membership (FOM) about a month ago. FedChoice now offers membership to all U.S. citizens/resident aliens, 18-years or older, through a donation to the FedChoice Charitable Foundation, which is “a non-profit foundation created by FedChoice Federal Credit Union to serve as a champion for the Federal Community and improves lives through financial education and philanthropy.” FedChoice will make a donation on behalf of anyone joining or a contribution can be made directly through fedchoicegives.org.

Federal civilian employees, annuitants, or federal contractors in the District of Columbia and portions of Delaware, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia also qualify for membership. A list of qualifying cities and counties can be found on the FedChoice Membership Eligibility page.

Immediate family and household members of a federal civilian employee, annuitant, or federal contractor who live in the above-mentioned areas are also eligible to join. FedChoice defines immediate family as a “spouse, child (step/adopted), sibling (step/adopted), parent, grandparent, or grandchild.” Household members are defined as “persons living in the same residence, maintaining a single economic unit.”

Account Opening

Joining FedChoice and/or opening a CD can be done online, or at of six full-service branches located in Washington, D.C. (3), Lanham, Maryland (2) and Philadelphia, Pennsylvania.

The Main Share Savings account establishes your membership and account number at FedChoice. An initial deposit of $5.00 is required upon Account opening. The $5.00 represents your minimum one share purchase and provides you with a savings account free of maintenance fee charges.

Funding and Other Details

The following information is from the TIS and a conversation with CSR.

Funding – ACH, wire (no fee), check, or Shared Branch transfer.
CO-OP Shared Branch Participant – Yes.
Ownership – Individual, joint, or trust. (FedChoice membership account must be a trust to open a CD in the name of a trust.)
Dividends – Compounded/credited quarterly. Dividends can be credited to the CD, paid out by check, or transferred to another account.
Maturing Funds – Cashier’s check to address on file or internal.
Beneficiaries – Unlimited with percentages (if desired), Social Security numbers required for all beneficiaries.
Grace Period – 10 calendar day before renewal (CD Special renews as a 12-month CD.)
Credit Check – Hard pull when joining.

Credit Union Overview

FedChoice Federal Credit Union has an overall health grade of "B” at DepositAccounts.com, with a Texas Ratio of 5.39% (excellent) based on December 31, 2022 data. In the past year, FedChoice’s total non-brokered deposits have decreased by -$8.37 million, an average annual growth rate of -2.12%. Please refer to our financial overview of FedChoice Federal Credit Union (NCUA Charter # 150) for more details.

Established in 1935 as IR Federal Credit Union, the original FOM was exclusive to the employees at the Main IRS Building in Washington, D.C. The FedChoice rebrand occurred in 2005 when the FOM was expanded to include all federal government civilian employees, and contractors in the greater District of Columbia metro area. As the 20^th largest credit union headquartered in Maryland, FedChoice Federal Credit Union currently has more than 24,000 members and assets in excess of $438 million.

How the 60-Month Mini-Jumbo Certificate Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and have minimum deposit requirements of $50k or less, no banks or credit unions have higher rates than currently offered on the FedChoice Federal Credit Union 60-Month Mini-Jumbo Certificate. The following tables compare the 60-Month Mini-Jumbo Certificate to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.

How the 11-Month High-Yield CD Special Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationally and have minimum deposit requirements of $10k or less, two banks have higher rates than currently offered on the FedChoice Federal Credit Union 11-month High-Yield CD Special. The following table compares the 11-month High-Yield CD Special 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 5/30/2023.

To search for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.