About a month ago, Frankenmuth Credit Union (FCU) raised the rates on its Jumbo CDs, adding between 21 and 38 bps. FCU started this week with another round of significant rate increases (35-46 bps) on all its Jumbo CDs.
These Jumbo CDs are also available as IRAs (Traditional, Roth, CESA) earning the same APYs and with the same funding requirements.
FCU offers regular CDs ($500 minimum deposit), but the APYs are drastically lower - between 165 and 209 bps - than the Jumbo CD APYs. There are also three Featured CD Specials ($500 minimum deposit) being offered, but their APYs are decidedly not special: 13-month (1.80% APY), 21-month (2.00% APY), and 37-month (2.25% APY).
In response to my June blog post, DA reader, Brad D, stated that FCU offers a VIP Rewards program that can add 25 bps to a CD.
I was not able to confirm that the VIP Rewards bonus applies to the Jumbo CDs; according to CSR, the bonus does not apply.
UPDATE 7/18/18: Like Brad D, I spoke with CSR at length this morning and confirmed that FCU members who qualify for either the VIP Rewards Gold or Platinum level “will receive an additional 0.25% CD benefit.”
CSR stated that the Early Withdrawal Penalty for any CD is a substantial "1/2 of the original term’s projected dividends whether earned or not. Balance or principal may be invaded."
Headquartered in Frankenmuth, Michigan, Frankenmuth Credit Union’s field of membership includes “Anyone that lives, works, worships or is educated in the state of Michigan.”
In addition, relatives of a current FCU member also qualify for membership.
Joining FCU and/or opening a Jumbo CD at can be done online or at any of 18 full-service Michigan branches, located in Bay City, Birch Run (2), Caro, Cass City, Elkton, Essexville, Frankenmuth (2), Freeland, Millington, Otisville, Reese, Rockford, Saginaw (2), and Vassar (2).
In addition to the full-service branches, this community-oriented credit union sponsors "Baby" Credit Unions in four local high schools, with services specifically for students and school staff.
Credit Union Overview
Frankenmuth Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 12.46% (above average) based on March 31, 2018 data. In the past year, FCU has increased its total non-brokered deposits by $67 million, an excellent annual growth rate of 16.45%. Please refer to our financial overview of Frankenmuth Credit Union (NCUA Charter # 61755) for more details.
Frankenmuth Credit Union was founded in 1964 by employees of Carling Brewery, with only the brewers and millers of Carling Brewery, Zeilinger Beverage, Geyer's Brewery, and Star of the West Milling, eligible for membership.
It wasn't uncommon in those early days when someone wanted a loan, if the credit union didn't have enough in savings, for staff from the credit union to walk around the brewery asking for additional deposits. People helping people!
With its change to a community charter in 1969, FCU began to grow and today is Michigan’s 22nd largest credit union, with more than 42,600 members and assets in excess of $602 million.
How the Jumbo CDs Compare
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available to Michigan residents, Frankenmuth Credit Union’s Jumbo CD APYs currently rank first, regardless of minimum deposit.
The above rates are accurate as of 7/18/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.