Freedom Credit Union Adds 30-Month CD
UPDATE 8/16/2018: This 30-month CD special (3.56% APY) has ended and is no longer available.
UPDATE 8/14/2018: Easy membership requirement through ACC is limited to residents of Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia, or Washington DC .
This is the way to start out the week: a 30-month CD earning 3.56% APY. This limited-time CD offered by Pennsylvania-based Freedom Credit Union (Freedom CU) requires a minimum $500 deposit of new money, with no stated balance cap. There is also a 30-month Youth CD (3.56% APY) for members 25 years and younger, which requires a $250 minimum deposit of new money.
The 30-month CD is also offered as an IRA (Traditional, Roth, CESA), earning the same APY with the same funding requirements.
In February, DA reader, Ginzy, commented on my blog post about Freedom CU’s 36-month CD, “If you look at their disclosure page it states that you can add funds at any time. You may want to call and verify this.” Unfortunately, the fine print on the promotion page for the 30-month CD states,
Additional deposits are not permitted during the promotional term.
As stated in the Truth in Savings disclosure, the Early Withdrawal Penalty reads as follows:
Terms of 12 to 36 months – 180 days of dividends
Many thanks to the DA readers who emailed me about this new and very hot deal at Freedom CU.
Availability
Headquartered in Warminster, Pennsylvania, Freedom Credit Union’s field of membership (FOM) is primarily residency based, with individuals who live, work, worship, attend school, or volunteer in the southeast Pennsylvania counties of Bucks, Chester, Delaware, Montgomery, or Philadelphia eligible for membership.
Community College of Philadelphia employees and students also qualify for membership, as do the employees/members of more than 290 SEGs.
Joining Freedom CU can be done online, or at any of six full-service Pennsylvania branches, located in Abington, Lansdale, Philadelphia (2), and Warminster (2).
Easy Membership Requirement
UPDATE 8/14/2018: One of the SEGs listed is the American Consumer Council (ACC). While there was some uncertainty about the easy membership requirement (EMR) when I last wrote about Freedom CU in February, after two phone conversations and a Live Chat this morning, EMR through ACC is indeed available, but only for residents of Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia, or Washington DC. ACC members, regardless of residency, can join Freedom CU. You must either fax (215.612.5939) or email (memberservices@freedomcu.org) a scan of your ACC eligibility certificate. According to the CSRs, the online application details the process.
Opening the 30-month CD
The 30-month CD cannot be opened online. After your application has been submitted and approved, you can open and fund the CD through an ACH transfer by calling 215.612.5912. That phone number is specifically for opening or obtaining information about the 30-month CD. The person I spoke with was knowledgeable and was able to answer my questions without hesitation. He stated that while the 30-month CD can be funded via ACH, maturing funds are normally sent by cashier’s check. Another option is to have the maturing funds transferred to a Freedom CU savings account and then withdrawn by ACH.
In summary, if you are not already a Freedom CU member,
1. Join Freedom CU through online application.
2. Send proof of ACC membership.
3. Call 215.612.5912 to open and fund 30-month CD.
4. Contact Freedom CU sometime in February 2021 to make arrangements for the maturing CD.
UPDATE 8/6/2018: DA reader, me1004, raised a good point in the comments section below. Freedom CU is indeed a member of the CO-OP Shared Branching Network, and using a Shared Branch certainly streamlines the funding process. Thanks, me1004.
Credit Union Overview
Freedom Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.19% (excellent) based on March 31, 2018 data. In the past year, Freedom CU has increased its total non-brokered deposits by $47.24 million, an excellent annual growth rate of 6.88%. Please refer to our financial overview of Freedom Credit Union (NCUA Charter # 60275) for more details.
Originally chartered in 1934, Freedom Credit Union is currently Pennsylvania’s eleventh largest credit union, with more than 65,200 members and assets in excess of $829 million. Between 2011 and 2014, Freedom CU merged with two Philadelphia area church-based credit unions, and assumed Mayfair Credit Union’s members and deposits after a NCUA liquidation.
How the CD Compares
When compared to the 197 similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM, Freedom Credit Union’s 36-Month CD APY currently (and clearly) ranks first.
The above rates are accurate as of 8/6/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
This is such an enormous benefit to trying to open a bank account when you cannot go to the branch to do it. It is a huge benefit of dealing with a CU instead of a bank. Banks really should set up some similar operation.
I once even used a shared branch to make a transfer from another CU to a third CU, and rather than have them issue me a check and then deposit it, I asked not to issue the check, just put the cash into the other CU. They did, and I paid no fee as no check was issued.
Much faster than the ACH!
What is the advantage of going the shared branch route? I don't see it -- just sounds like additional effort for no reason. But I may well be wrong -- there might be reasons to do it that just escape me.
I've noticed DA often notes that about a savings account but never considers the easier and faster way of a checking account and writing a check.
The hold I was talking about was on the deposit to the new CU, when you deposit to the savings account there. That hold is irrelevant, as they can still transfer the money to open the CD, and bring the hold over with it -- it in house. That hold does not freeze it in the savings account, it simply prevents it from being withdrawn from the CU.
I have been doing this for at least 15 years, I have never had an issue about that hold. You made a comment that the deposit to the savings will have a hold on it so can't be moved -- yes, it can be moved.
I don't care how you want to do it, but nothing out there, not even fed funds wire, is as fast as the shared branch system.
Info on Freedom Credit Union's "Free Interest Checking" account can be found at https://www.freedomcu.org/accounts/checking/free-interest-checking.html
Thanks!
Probably out of date but worth a look
I guess the ACC costs $8.
Two ways to join:
1. Join for $8.00 - if you currently use or have used a major consumer product or service in the past 12 months, you can join ACC or your state consumer council for $8.00!
2. Lifetime Members - The lifetime cost of membership is $15.00.
But, I sure did not print an eligibility certificate.
consumer
But the 3.15% is .6% above an 18 month and that is too.
But, I might do nothing for a week or so.
https://www.bloomberg.com/news/articles/2018-08-06/dimon-doubles-down-on-higher-u-s-yields-call-with-5-warning
We shall see:
https://www.bloomberg.com/view/articles/2018-08-06/jamie-dimon-s-5-yield-is-a-longshot-here-s-why
To be continued ....................
I do not plan to EW. Right now 3.56% for 2 1/2 years is not bad. About the best we can hope for going forward is probably 4%-4.25%, - maybe available in 6-12 months. So would only be losing about .5% to .75% for 18 months, while gaining the 3.56% for the next 12 months. Also have CD's maturing in early 2019 to take advantage of hopeful upcoming increases. Still wrestling with this one. Going to sleep on it tonight before funding tomorrow.
It's a crapshoot !
p.2, col. 2 '"Early Withdrawal Penalty" at https://www.freedomcu.org/documents/Disclosures%20update.pdf
Please note that I am quoting the credit union's general disclosure statement. The disclosure for the 30-month special simply states: "Penalty will be applied for early withdrawal."
https://www.freedomcu.org/home/cd-promotion.html
For eight years we jumped on any deal that was halfway decent because there were so few of them. Now we are in a different environment which requires the opposite approach.
Why are you regretting the 4% Sharonview CD purchase? Because you think you could have used it to purchase a 5% CD, when it became available. It could be a year or more before that happens, or it may never happen. Who knows what the economy will be like a few months or a year from now...after the mid-term election.
Patience may be a virtue, but by waiting too long you might miss the boat completely, if your scenario does not play out. I think the prudent thing to do is ladder and spread your CD purchases as rates rise. When you buy and what maturity you pick will depend on your own preferences.
No one knows when CD interest rates when rates will hit their high or stop rising. We may not see a 5% CD until a year from now or longer. Do you have your funds parked in a savings account while you're waiting? I bought a couple of CDs three years ago with interest rates just a little above 2%, and I was thrilled then. That was a good deal at the time, because saving and checking interest rates at online banks and credit unions were minuscule. I just did the best I could at that time,
WIDSOM!!!
(What's the frequency, Kenneth?)
If you're thinking that because of Jamie Dimon's comment about 5%, he is talking of the 10-year note, not the time frame for which one gets a CD. AND, the stories I've seen do not have him giving any time frame for when, but it certainly is not by the end of this year. He probably means that is where things eventually will peak down the line, not in the near future.
Now after 10 long yrs with lousy rates, posters are still shellshocked or suffering from post traumatic syndrome and refuse to believe we are now in a totally different economic environment that is most receptive for higher interest rates. Of course, anything can happen, but almost all the economic factors you need for higher rates are now present in this economy. So I intend to wait at least until the end of the year before I commit any funds to any securities longer than 6 months. Also, with the flattening yield curve for the time being there is no reason to go long with any of my money.
Responses for that is just 1 (at present). Responses for this are 40+ already.
Thanks for the insight!!
Go to https://www.americanconsumercouncil.org/membership.asp?dname=Americanconsumercouncil.org
At the end, where it says "Membership Code", enter consumer -- should save you the membership fee.
First: Apply online, open the share savings account. Write down the account number.
Go to shared branch: show your drivers license, give them the name of credit union you want to deposit the check into, give them the account number. Then write the check to yourself and hand it over. The account will be funded immediately. They will give you a receipt. Go home, call the CU and tell them to open the CD and they will transfer your funds from the share shavings account and open the CD. Done!
I presume its fairly easy. But a check is not needed.
So yes, I am not clear on exactly how it works because I have not done it yet.
I have done the share branch deposit 3 times now so I am an old pro.
at some other institutions. The receiving institution CSR just quotes the standard funds availability policy and doesn't seem to understand the hold condition is transferable between accounts (savings to new CD), enabling CD interest accumulation from day of deposit. Thus, until expiration, the hold only serves to prevent possible early withdrawal attempts. But it shouldn't prevent account opening! Really no different than opening a check-funded CD in person!
Speaking with a supervisor usually resolves the issue in a timely fashion.
But with potentially special software in place for this promo to contend with,
and possibly having to play 'phone tag' with representatives, I suppose YMMV.
Are you suspecting that the tellers in your local shared branch have their Twitter, Instagram, Live Cams all fired-up just waiting for someone to make a $250k deposit, to begin broadcast of your details Really ... again where are you from?
Will be interesting to find out how much MZ of Facebook used to pay when he dropped out of college and came here.
I was told I would need to mail my ACC membership. (after searching, I found it) Now, after 2 days they tell me it may take another day before I will hear anything about my membership.
Freedom CU 30-Month CD, 3.56% sounded pretty good, but I'm beginning to wonder if it's not just a hoax. After reading all 94 responses here, my question is.. Has anyone opened a new account?
Wednesday morning I signed back in and the CD is showing as fully funded.
The email address to send the ACC certificate is wrong. "memberservices..." was undeliverable. FCU told me to send it to help@freedomcu.org.
very frustrated
This story is causing frustration. Seems no one is following up on my membership or allowing me to process an account. I'm thinking I will call on Monday 8/13 & ask for a Supervisor (if they have one) to find what is the problem.
--how often they compound and credit/pay the CD dividends (monthly, quarterly, etc.)?
and
--what options they provide for the handling of those dividends (credit to share or checking account, credit to the CD, mail a check, etc etc)?
Thanks!
see page 2 of PDF at https://www.freedomcu.org/documents/Disclosures%20update.pdf
Interest can be retained in the CD. According to the person who opened my CD, credited interest may be withdrawn at any time without penalty.
I did not ask about the other options you mentioned (crediting interest to another account at Freedom or mailing a check).
I should probably sit tight as a better deal will come down the pike in the next month or two.
In fact, one of them is out today and the other is supposedly in training!!!! So, people are calling to get in on this offer, but there is NO ONE there who can open the accounts!
Update: 8/14/18 11:15 AM PDT, I finally got a call back. Apparently, they misunderstood the time we agreed to talk (EDT v PDT), but the account is open.
As others have posted this offer will most likely be gone by the end of the week latest.
-- UPDATE 8/14/2018: Easy membership requirement through ACC is limited to residents of Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia, or Washington DC .
I wonder how many people having joined under auspices of ACC without satisfaction of the
additional residency requirements, if indeed that new information is correct, will eventually be
tossed out of the CU and funds returned (hopefully without EWP)?
usually once member always member
A good guess would be Zero. On the off chance you are new to this site, there is a lot of plain wrong information. An even better source than the misinformation here is the credit union itself. If they allow people to join, it is a pretty good indication the credit union will not be going through old accounts to kick people out.
considered Dormant? My experience opening the account and fund it was very smooth. The
customer service representatives are simply excellent.
I opened the 30 month Special CD. Do I need to do any transactions periodically in this account
to protect from this exorbitant dormant fee?