Founders Federal Credit Union (SC) Has Rate-Leading 12-Month IRA CD
At the beginning of January, Founders Federal Credit Union (FFCU) raised the rates on its 24-month IRA Share Certificate and 24-month Share Certificate to market-leading levels. Those rates lasted about three weeks before dropping precipitously.
FFC has started February by boosting rates on a single term-length once again. Following 52-bps increases, the 12-month IRA Share Certificate (Traditional, Roth, CESA) currently earns 5.88% APY, with the 12-month Share Certificate offering 5.61% APY.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 4.58% | $500 | - | Founders Federal Credit Union | 12 Month IRA (Traditional, Roth, CESA) | |
| 4.32% | $500 | - | Founders Federal Credit Union | 12 Month Share Certificate |
The 12-month IRA Share Certificate and 12-month Share Certificate have the highest and most competitive rates currently offered in the FFCU IRA and CD product line.
As stated on the Dividend Rates page,
A certificate that is opened or renewed with a balance of $500,000.00 or greater is eligible for a 0.25 increase in the dividend rate available at account opening for the stated term of the certificate.
Early Withdrawal Penalty
As stated in the Truth-in-Savings disclosure, the Early Withdrawal Penalty reads as follows:
Terms of 12 months, 180 days’ dividends.
According to CSR, partial withdrawals are allowed, but any withdrawal in the first 180 days following account opening will reduce the principal. FFCU also “reserves the right to require a member intending to make a withdrawal from any account (except a share draft account) to give written notice of such intent not less than seven days and up to 60 days before such withdrawal.”
Availability
Headquartered in Lancaster, South Carolina, Founders Federal Credit Union’s field of membership (FOM) offers a variety of ways to join.
Residency: Individuals who live, work, worship, attend school, or volunteer in the South Carolina counties of Chester, Chesterfield, Laurens, or Union, or the South Carolina towns of Duncan or Wellford are eligible for membership.
The first Founders FCU’s online application states that individuals who live, work, worship, attend school, or volunteer in any of 65 Census Tracts (Cherokee, 5; Lancaster, 3; Richland County, 27; Spartanburg, 18; Yorktown, 12) also qualify for membership.
Employment: Employees, retirees, and volunteers of more than 1,000 businesses in South Carolina and North Carolina are eligible to join.
Associations/Organizations: Individuals who are members, or attend, worship, or volunteer at over 180 listed associations/organizations are eligible to join. The groups listed include many churches, schools (including Clemson University and the University of South Carolina), and home owners associations, among others.
Other: Immediate family members (spouse, sibling, parent, child, grandparent, grandchild, including step- and adoptive relationships) and household members of current FFCU members are welcome to apply.
Account Opening
Joining FFCU can be done online (there is a “Become a Member” button on every page of FFCU’s website) or at any of 40 South Carolina branches located in Catawba, Cheraw, Chester (3), Chesterfield, Clemson, Clinton, Columbia (4), Duncan, Fort Mill (3), Gaffney, Great Falls, Indian Land (2), Kershaw, Lancaster (4), Laurens, Lexington, Newberry, Pageland, Rock Hill (6), Simpsonville, Spartanburg (3), and Union. FFCU also has two North Carolina branches, located in Charlotte and Monroe.
A Founders Savings Account, with as little as $5, is your primary account.
While Share Certificates can be opened online, an IRA Share Certificate must be opened in-person at any of the above-mentioned branch locations. Current members can also open a Share Certificate through Founders Online, the FFCU online banking platform.
Funding and Other Details
The following information is from the FFCU website and a Live Chat with CSR.
- Funding* – ACH, wire ($15 fee), or internal transfer.
- CO-OP Shared Branch Participant – No.
- Ownership – Individual or joint.
- Dividends – Compounded/credited quarterly and can be withdrawn without penalty.
- Maturing Funds – Internal transfer to an FFCU checking or savings account.
- Grace Period – 15 calendar days before automatic renewal.
- Beneficiaries – Unlimited with equal shares; Social Security numbers are required.
- Credit check – Hard inquiry through Experian.
*As stated on the online application,
Initial Online Account Opening transactions may not exceed $1,500.00 in deposits. Once your account has been opened you may deposit additional funds into your savings or checking accounts, then log in to Founders Online Banking to open and fund accounts and certificates in excess of this initial limit.
Credit Union Overview
Founders Federal Credit Union has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 3.50% (excellent) based on September 30, 2023 data. In the past year, Founders FCU has increased its non-brokered total deposits by $226.98 million, an excellent annual growth rate of 6.63%. Please refer to our financial overview of Founders Federal Credit Union (NCUA Charter # 24063) for more details.
Founders Federal Credit Union is currently the largest credit union in South Carolina, with nearly 257,000 members and assets in excess of $4.2 billion. In 1950, Colonel Elliott White Springs established the Springs Employee Credit Union for the benefit of the employees of Springs Textile Mill. (Founded in 1888, Springs Cotton Mill was once South Carolina’s largest industrial employer.) After years of organic growth and several mergers, the Founders Federal Credit Union rebrand occurred in 1993.
According to a December 2023 Credit Union Times article, Founders,
paid members $10 million Tuesday, Dec. 12 as a Loyalty Bonus Dividend. The amount represents about $38 per member and 24 basis points of its return on average assets of 1.20% for the 12 months ending Sept. 30.
The credit union’s last Annual Bonus Dividend was $5 million paid out in 2019, but it distributed a $20 million Super Loyalty Bonus Dividend in February. Since 1992, Founders has given back more than $101 million in special dividends.
How the 12-Month IRA Share Certificate Compares
When compared to similar length-of-term IRA CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $10k or less, no banks or credit unions currently have higher rates than offered on the Founders Federal Credit Union 12-month IRA Share Certificate. The following table compares the 12-month IRA Share Certificate to the two highest-rate similar length-of-term IRA CDs from banks/credit unions within the market area.
To look for the best IRA Certificate rates, both nationwide and state specific, please refer to our IRA Certificate Rates Table page.
How the 12-Month Share Certificate Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM, have fixed rates, and have minimum deposit requirements of $10k or less, one bank and one credit union currently have higher rates than offered on the Founders Federal Credit Union 12-month Share Certificate. The following table compares the 12-month Share Certificate to the four highest-rate similar length-of-term CDs from banks/credit unions within the market area.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
The above rates are accurate as of 2/3/2024.
