Burbank City FCU (CA) Has Very Competitive Long-Term CDs

POSTED ON FRIDAY, OCTOBER 7, 2016 BY Ken Tumin

Availability: Variety of employee groups in Southern California; easy membership requirements for residents of Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura Counties, California.

In late September, a long-time DA reader from the West Coast told me about a couple competitive long-term CDs being offered by Burbank City Federal Credit Union (Burbank City): 48-month Fixed Rate Share Certificate (2.00% APY), and 60-month Fixed Rate Share Certificate (2.25% APY). As Burbank City makes any rate changes at the beginning of the month, I waited until I could confirm the rates were valid through October.

APY	MIN	MAX	INSTITUTION	PRODUCT
2.75^*%	$100k	-	Gain Federal Credit Union	60 Month Share Certificate
OTHER TIERS: 1.00% → $1k - $5k \| 2.30% → $5k - $25k \| 2.40% → $25k - $50k \| 2.50% → $50k - $100k
2.75^*%	$100k	-	Gain Federal Credit Union	60 Month IRA Certificate (Traditional, Roth, CESA)
OTHER TIERS: 1.00% → $1k - $5k \| 2.30% → $5k - $25k \| 2.40% → $25k - $50k \| 2.50% → $50k - $100k
2.30^*%	$100k	-	Gain Federal Credit Union	48 Month Share Certificate
OTHER TIERS: 0.90% → $1k - $5k \| 2.05% → $5k - $25k \| 2.10% → $25k - $50k \| 2.20% → $50k - $100k
2.30^*%	$100k	-	Gain Federal Credit Union	48 Month IRA Certificate (Traditional, Roth, CESA)
OTHER TIERS: 0.90% → $1k - $5k \| 2.05% → $5k - $25k \| 2.10% → $25k - $50k \| 2.20% → $50k - $100k

Rates as of November 15, 2018.

All of Burbank City’s Share Certificates have five rate tiers, with the highest APYs offered on deposits of $100k+. While tiered rates are not uncommon and are usually structured in stair-step fashion (5 or 10 basis point increases per tier), Burbank City’s tiers have a large increase between the $1k and $5k tiers, and the $50k and $100k tiers.

The 48- and 60-month Fixed Rate Share Certificates are also available as IRAs (Traditional, Roth, CESA), earning the same tiered APYs and with the funding requirements.

As stated in the Truth In Savings disclosure, the Early Withdrawal Penalty reads,

If the term of the account is one year or greater, the member shall forfeit an amount equal to:

a) All accrued, earned, and unearned dividends for 180 days on the amount withdrawn, or

b) If a withdrawal or imposed penalty reduces the balance below the required minimum, the account shall be closed and a loss of dividends, as stated above, will be assessed on the entire amount in the account.

Many thanks to the DA reader who let me know about these deals, and for providing the following information:

Joining the Credit Union and opening a CD resulted in a hard credit pull by Transunion, a ChexSystem pull, and a public records pull.
Opening an account in the name of a trust ran into some complications: Burbank City required that the member bring in the full trust document and required Social Security numbers and birth dates of the successor trustees.

Availability

Headquartered in Burbank City in Southern California, Burbank City Federal Credit Union’s field of membership is primarily employment based, with employees/retirees/members of the following organizations eligible to join:

The City of Burbank, Burbank City Employees Association (AFSCME 3143), FotoKem Film and Video, Burbank Association of Realtors, Burbank Community YMCA, International Alliance of Theatrical Stage Employees (IATSE Local 33), Burbank Chapter of the National Charity League, Inc, and Autry Museum Docent Council.

In addition, residents of Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura Counties, who join either the Friends of the Burbank Public Library or the Burbank Historical Society ($10 fee for either), qualify for membership.

Immediate family and household members of current Burbank City membership are also eligible for membership.

Complete details are available on the Field of Membership page.

Joining Burbank City and opening a variety of accounts can be done online, or in person at the single branch location on Magnolia Blvd. in Burbank City. The Credit Union’s Membership Application is available for download to expedite the process.

Credit Union Overview

Burbank City Federal Credit Union (NCUA Charter # 3943) has an overall health grade of "A" at DepositAccounts.com, with an excellent Texas ratio of 3.78%, based on June 30, 2016 data. In the past year, Burbank City has increased its total deposits by $19.27 million, an excellent annual growth rate of 7.82%. Please refer to our financial overview of Burbank City Federal Credit Union for more details.

Founded in 1940, Burbank City Federal Credit Union’s home for the first ten years were a variety of the City of Burbank facilities, including three years in Fire Station #1. It was more than 35 years later before the Credit Union broke ground for its permanent home. Burbank City is currently California’s 98th largest credit union, with more than 17,800 members and assets in excess of $292 million.

How the CDs Compare

When compared to the 211 similar length-of-term CDs tracked by DepositAccounts.com that are available in Southern California, Burbank City Federal Credit Union’s 48-month Fixed Rate Share Certificate APY currently shares the top spot with NASA FCU’s 49-month Certificate Special ($5k min) and Bay State Savings Bank’s 48-month CD ($1k), regardless of minimum deposit.

When compared to the 225 similar length-of-term CDs tracked by DepositAccounts.com that are available in Southern California, Burbank City Federal Credit Union’s 60-month Fixed Rate Share Certificate APY currently ranks third, regardless of minimum deposit.

The above rates are accurate as of 10/7/2016.

To search for the best CD rates, both nationwide and state specific, please refer to the CD rates section of DepositAccounts.com or our Rates Map page.

me1004 | Oct 8, 2016 | Comment #1

A public records pull in addition to two credit pulls, in other words, find out every last tiny bit about you because we don't like your kind?! And, a public records check will include even court records, any civil lawsuits, a divorce, even criminal records -- the city of Burbank has a long history of this kind of intense checking. Social Security numbers of beneficiaries in an outside trust that the CU has no oversight over, the executor of that trust has the oversight?! These aren't needed checks, they are simply spying for reasons completely unrelated to banking -- something for which the city of Burbank has a history!

jimbeau | Oct 8, 2016 | Comment #2

The public records check is probably a throwback to when the CU was just for City of Burbank employees. That being said, it's pretty over the top for vetting new members nowadays.

As far as the rates go, NASA's 2% 49 month CD doesn't required 100K.

Ken Tumin | Oct 8, 2016 | Comment #3

Good point about NASA FCU's 49mo CD. That minimum has been added to the text.

Bozo | Oct 9, 2016 | Comment #4

As I've said over, and over, and over, they (financial institutions) run a credit check on us when we offer to lend them money. Huh? Isn't that backwards?

jimbeau | Oct 9, 2016 | Comment #5

Blame that on the "Patriot Act". The credit check is used for identify verification purposes. Although you would think vetty someone thru the Chex system would suffice.

me1004 | Oct 10, 2016 | Comment #6

Yes, a credit check is common; among other things, it helps them check your identity, and they do want a heads up about someone who might write bad checks.

However, a soft credit check is all that is needed for that. And a credit check is nothing compared to what this CU is doing in running a full background check of anything they might be able to access as if it is the FBI investigating a crime -- opening a credit union membership is not a crime! What this CU is doing is a very serious infringement on privacy.

Anonymous | Oct 11, 2016 | Comment #7

If needed for checking acct., then do it for that type of account. Bozo is right. Me1004...focus on the thread rather than red-herrings! Borrowers, i.e. CUs, etc. don't need it when acting in that capacity...and no one can expect to know what a soft pull is!

Bozo | Oct 11, 2016 | Comment #8

I mean, seriously? They might run a full-blown credit check if I came in with a suitcase of Benjamins. That might seem a tad fishy. If I'm just shopping around for one of Ken Tumin's "best deals" for a rewards checking account, and I find out my credit score has been subject to three hard pulls, and my FICO score damaged as a result, well, I'd be a bit miffed.