If you haven't been turned off by what Fort Knox Federal Credit Union did in 2011, you may want to consider its current CD special. It just came out with a special 46-month CD with a 2.05% APY. There’s also a special 14-month CD with a 1.00% APY. Minimum deposit is $500. These rates are listed in the credit union's Term Share Certificate Rates page as of 2/21/2014.
The small print at the bottom of the credit union’s rates page describes the early withdrawal penalty:
If all or part of the principal is withdrawn before the maturity date, the Credit Union may charge a penalty. Withdrawal of the principal amount of the Certificate may be made only with the consent of the Credit Union. Unless stated otherwise, the owner shall forfeit an amount equal to 180 days dividends whether earned or not on certificates with maturities greater than 24 months. The penalty on certificates with maturities less than 24 months is 90 days dividends whether earned or not. The penalty may be calculated at the rate paid on the deposit. The penalty will, if necessary, be taken from the principal amount of the deposit.
Note, the small print includes language that gives the credit union the right to refuse an early withdrawal request.
Beware of Fort Knox FCU’s History
Fort Knox FCU is well known here as the credit union which raised the early withdrawal penalty on members' existing certificates. A member filed a complaint with the NCUA over this issue, but the NCUA ruled in favor of Fort Knox FCU's right to increase the EWP based on generic clauses in the membership agreement. I have the details in this post.
I know some readers might prefer that I not give Fort Knox FCU any publicity. I think it’s better to give all the facts including its history. If I don’t report on these CDs, people will get information about these CDs from other websites which won’t provide any of the credit union’s history.
According to the credit union's membership eligibility page:
If you do not meet any of these eligibility criteria, you may qualify for membership by joining the American Consumer Council --it's free! Call your local branch for more details.
There's a "Become a member" link on this page which takes you to an online application. In the online application where you select how you're eligible to join, it states:
If you can't find an eligibility requirement to match your situation, you can still join the credit union. Just select the "I'm eligible for membership through" drop down to the left and choose the "other" option.
Membership requires a one-time $10 fee and a minimum $5 balance in your share account.
Credit Union Overview
Fort Knox Federal Credit Union branches are located in several cities in Kentucky including Fort Knox, Radcliff, Elizabethtown and Campbellsville. The credit union belongs to the shared credit union network that allows you to perform several banking transactions at shared branches across the nation.
The credit union has an overall health grade at DepositAccounts.com of an A+ with a Texas Ratio of 1.68% (excellent) based on September 2013 data. Please refer to our financial overview of Fort Knox FCU for more details. The credit union is federally insured by the NCUA (Charter # 7000).
How This CD Rate Compares
If you don't want to do business with Fort Knox FCU, there’s another option that has a rate and term close to this special CD. NASA Federal Credit Union has a special 49-month CD with a 2.00% APY. This is another all-access credit union that makes it easy for people in any state to join. I have more details about this CD special and NASA Federal in this blog post.
The highest 48-month CD rate at an internet bank is 1.80% APY. That’s being offered by GE Capital Retail Bank for a $100K minimum deposit.
Navy Federal has a Jumbo 48-month CD with a yield of 2.05%. However, Navy Federal membership has limitations.
The above rates are accurate as of 2/21/2014.
Searching for the Best CD Rates
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.