California-based First Technology Federal Credit Union (First Tech), is one of the latest easy membership requirement credit unions offering a 5% CD. Following a rate increases of 50 bps, the 13-month Jumbo Bump Up CD ($50k min) and 13-month Bump Up CD ($500 min) currently earn 5.05% APY and 5.00% APY, respectively.
|3.87%||$500||-||First Technology Federal Credit Union||13 Month Bump Up CD|
|3.87%||$500||-||First Technology Federal Credit Union||13 Month Bump Up IRA (Traditional, Roth, CESA)|
The 13-month Jumbo Bump Up CD and 13-month Bump Up CD are both available as IRA Bump CDs (Traditional, Roth, CESA), earning the same APYs with the same deposit requirements.
While these new rates aren’t “wow-worthy,” they are still competitive given the recent shifting of short-term rates. The Bump Rate option and the additional deposit feature only increase the intrinsic competitiveness of the 13-month Jumbo Bump Up CD and 13-month Bump Up CD. As stated on the First Tech Rates page,
You have the option […] once per term for Bump Up products with a term less than twenty-four (24) months, of exchanging the dividend rate for a new dividend rate that is currently offered on term share certificates at no cost to you.
You have the option […] once per term for Bump Up products with a term less than twenty-four (24) months, to make one (1) additional deposit. The maximum amount you can deposit is up to the original amount of the certificate at the start of the current term.
The maximum add-on deposit proscription of the "original amount of the certificate at the start of the current term" reduces the CD’s competitiveness.
CSR stated the rate increase option and the additional deposit option operate independently of each other: an additional deposit can be made whether a rate increase has occurred or not, and exercising the rate increase option does not require an additional deposit.
As stated on the Rates page, the Early Withdrawal Penalty reads as follows:
If a withdrawal of principal is made prior to the Maturity Date, the Credit Union will impose a penalty on the amount withdrawn that is subject to penalty. Penalties may reduce the principal.
If the Share Certificate Account has a term to maturity of between one (1) year and two (2) years, the penalty imposed will equal 180 days of simple dividends, whether or not earned.
Headquartered in Mountain View, California, First Technology Federal Credit Union’s field of membership (FOM) is widely diverse, providing virtually all U.S. residents the opportunity to join.
Easy Membership – Members of either the Financial Fitness Association or the Computer History Museum are eligible for membership, regardless of residency or employment status. Joining either organization and applying for First Tech membership can be done simultaneously using the online application or during an in-branch visit.
Residency – Individuals who live or work in Lane County, Oregon, qualify for membership.
Employment – Employees of the State of Oregon and more than 950 high tech and telecom Partner Companies are eligible to join, as are their family members.
Relationship – Immediate family members and household members of current First Tech members also qualify for membership.
Joining First Tech and/or opening a Bump Up Jumbo CD/Bump Up CD can be done online, through Member Services, (855.855.8805), or by visiting any of 38 full-service branches located in California (9), Colorado (4), Georgia, Idaho, Massachusetts, Oregon (12), Texas, and Washington (9). Appointments are available at a branch locations and can be scheduled online.
Opening a Membership Savings account with a minimum $5 deposit “is your gateway to First Tech membership.”
Funding and Other Details
The following information is from the Truth-in-Savings disclosure and a conversation with CSR.
- Funding – ACH, wire ($5 fee), check, or shared branch transaction.
- CO-OP Shared Branch Participant – Yes.
- Ownership – Individual, joint, or in the name of a trust.
- Interest – Compounded/credited monthly and can be withdrawn penalty-free.
- Maturing Funds – ACH, wire ($20), cashier’s check to address on file, or internal transfer.
- Beneficiaries – Unlimited with equal shares; Social Security numbers are required.
- Grace Period – 10 calendar days before automatic renewal. “If the Share Certificate is no longer offered at the time of renewal the funds will be transferred to your Membership Share Savings Account.”
- Credit Check – Soft pull.
Credit Union Overview
First Technology Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 0.88% (excellent), based on December 31, 2022 data. First Tech has an excellent capitalization level (34.28%), the result of holding $16.7 billion in assets with $5.72 billion in equity. Please refer to our financial overview of First Technology Federal Credit Union (NCUA Charter # 19976) for more details.
First Technology Federal Credit Union was founded in 1970 by a small group of Hewlett-Packard and Tektronix employees who wanted to strengthen their individual and collective financial futures. More than 50 years later, First Tech is currently the third largest credit union headquartered in California and the ninth largest credit union in the country, with nearly 650,000 members and deposits in excess of $11 billion. First Tech describes itself as,
the nation’s premier credit union serving the world’s leading technology-oriented companies and their employees, including HP Inc., Hewlett Packard Enterprise, Microsoft, Agilent, Intel, Cisco, Amazon, Nike, Intuit, Google and more.
How the 13-Month Jumbo Bump Up CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $50k or less, two banks and one credit union have higher rates than currently offered on the First Technology Federal Credit Union 13-month Jumbo Bump Up CD. The following table compares the 13-month Jumbo Bump Up CD 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 4/17/2023.
To search for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.