Garden Savings Federal Credit Union 4-Year CD APY Jumps
Given the other rates offered by New Jersey-based Garden Savings Federal Credit Union (Garden Savings), I have to admit I thought the 4.08% APY was probably an error. According to CSR, the 4.08% APY is a new, limited-time promotional rate for the 4-year Share Certificate. There is no specific end date for the promotion – it’s one of those “it’s available until it isn’t” promotions. The minimum opening deposit is $500, with no stated balance cap.
The Share Certificate is also available as an IRA (Traditional, Roth, CESA) earning the same 4.08% APY, with the same funding requirements.
The 4-year Share Certificate’s APY has been languishing for more than six years, with rates of 1.77% APY and below. The 4-year Share Certificate gained a total of 86 bps from February 2014 to November 2018; yesterday, the APY increased by 221 bps. While forecasting which bank or credit union will offer the next great rate is a losing proposition, I can just about guarantee Garden Savings wouldn’t have been on my bingo card for 4-year/4% CDs.
As stated on the Certificates page, the Early Withdrawal Penalty reads as follows:
On terms of 1 year or greater, early withdrawal penalty is 180 days of dividends earned.
According to CSR, funding a Share Certificate can be done by ACH. At maturity, funds can be distributed by ACH, wire, check, or transferred to another Garden Savings account.
Excess Share Insurance
Deposits at Garden Savings FCU are fully insured up to $500,000: to at least $250,000 by the NCUA and $250,000 by Excess Share Insurance, the nation’s largest provider of excess share insurance since 1993.
Availability
Headquartered in Parsippany, New Jersey, Garden Savings Federal Credit Union’s field of membership (FOM) provides a way for almost any U.S. citizen or resident alien, 18 years or older, to join.
Easy Membership – Members of the American Consumer Council (ACC) are eligible to join Garden Savings FCU.
Residency – Individuals who live, work, worship, attend school, volunteer, or regularly conduct business in the New Jersey cities of Elizabeth, Newark, or Jersey City qualify for membership.
Employment – Employees, retirees, and volunteers of more than 170 businesses and organizations qualify for membership.
Family Relationship – Immediate family members of current Garden Savings FCU members are eligible to join.
More than two years ago, DA reader, Sylvia, pointed out in a Forum post that Garden Savings FCU “is not a very tech smooth CU.” An online application was added about a year ago, but there were problems when trying to open a CD online. With this new 4.00% APY, I had hoped the online application had been tweaked into a smooth-running machine, able to easily handle heavy usage. Unfortunately, it’s still a problem. When selecting “Certificates” under “Select Accounts and Services,” no CDs (or rates) are listed, making it impossible to choose a CD term. What does appear in the drop-down is the following:
Additional terms and tiers available by visiting a branch or calling 973-576-2002.
Rates are subject to change. The rate will be set once your account is open and
funding is complete. Interest will begin accruing on the date your account is funded.
According to CSR, the online application is actually in two parts, with the first part capturing all of your identifying information. Once your membership application has been approved, you can open a CD online.
Garden Savings FCU also has four full-service New Jersey branches located in Dover, Newark, Parsippany, and South Orange. There are also two branches in Montville and Murray Hill for Marrota Controls and Nokia employees, respectively.
Credit Union Overview
Garden Savings Federal Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 11.75% (above average), based on June 30, 2018 data. Garden Savings FCU has an above average capitalization level (10.32%), the result of holding $354.78 million in assets with $36.63 million in equity. Please refer to our financial overview of Garden Savings Federal Credit Union (NCUA Charter #18710) for more details.
Garden Savings Federal Credit Union is currently New Jersey’s seventh largest credit union, with more than 27,600 members and assets in excess of $354 million. Originally founded in 1968 for the benefit of the employees of AT&T Bell Laboratories (known today as Alcatel-Lucent) employees, Garden Savings FCU expanded their FOM in 1985 to include other SEGs, as well residents of the county seats of Essex, Hudson, and Union Counties, New Jersey. In 2013 and 2014, Garden Savings FCU merged with Morristown FCU, NWNJ FCU, and Essex Division Telephone FCU.
How the Share Certificate Compares
When compared to 174 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Garden Savings Federal Credit Union’s 4-year Share Certificate APY currently has no competition.
The above rates are accurate as of 11/7/2018.
To search for the best CD rates, either nationwide or state-specific, please refer to the CD Rates Table page.
- Experian (that's what they told me to unfreeze to get thru app. process)
- ACC membership, however, they did not request the member number
- Funding up to $5000 using credit card (WOW!, of course I just chose $5)
- after app filled out, get message: Rep. will email you within 1 day with instructions to complete application process
Never heard of that much before, but then again I do recall people quoting that amount from other deals on this blog so maybe times have changed.
"SPECIAL RULES FOR NEW ACCOUNTS— If you are a new member, the following special rules will apply during the first30 days your account is open.
Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000.00 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s, and federal, state, and local government checks will be available on the next business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you. The excess over $5,000.00 will be available on the ninth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000.00 will not be available until the second business day after the day of your deposit. Funds from all other check deposits will be available on the ninth business day after the day of your deposit."
Anyone with GSFCU-specific experiences relating to this issue, please share!
They said I need to fund my account by next Thurs. and they would honor the 4.08% 4 year CD.
share savings acct # was on documents.
Planning to go to Co-op CU tomorrow and depositing check to myself using my new acct# and then calling them on Monday about opening the CD.
That was really Quick!
I did the Sharonview 4% 63-month deal in March, and they were willing to lock the rate while the IRA funds were transferring. Maybe that was unusual, though.
(2) A rep told me that when you do the docusign later, you will need to upload your certificate of membership from the ACC.
Last year this would have looked great.
But with the FED's projected rate increases, not so much.
As far as the term length (6 yrs), keep in mind that Tobyhanna CU (which failed and was taken over by PenFed) saw a lot of DA readers to open up CDs there at 3% in a time when 3% was very rare -- and that was for a SEVEN year term. Even Sharonview (yay!) was not for 60 months (5yrs) but 64 months (5 1/3rd years).
And the EWP is only 180 days.
Just remember, things can take a while with this CU.
As mentioned in other deals just, 1) Open Member Savings online or by calling, 2) Go to Shared branch to make deposit, 3) Call Garden Savings to move money to CD. You're done.
Also, no $ limits on withdrawals, unless the Shared branch has one. Best to move quick on this one according to the CSR, ...she thinks it may only last 'til the end of the week. I give it 'til 11/30.
I will consider it, - but with Fed rate hikes pegged for December and March 2019, what might the rate leaders be offering for 4 or 5 year terms by then?
Rising inflation is a big concern.
https://www.bankrate.com/credit-unions/garden-savings/199481/
For my CD ladder, I would favor a 4% / 48 month rate. But I'm looking for an IRA CD, and need to have it properly administered, and with automated annual Required Minimum Distributions.
By Bankrate's standard rating measures, this is a troubled institution. Rating CAPITAL ADEQUACY, Garden Savings received a score of 8 out of a possible 30 points, below the national average of 15.65. Rating ASSET QUALITY, it scored 32 out of a possible 40 points, falling short of the national average of 38.09 points. On Bankrate's EARNINGS test, Garden Savings scored 0 out of a possible 30, falling short of the national average of 10.11.
The only bank/CU in which I held a CD where the Bankrate.com rating dropped to a 2 Star several years after I invested in it was then closed by the FDIC and my CD terminated and the funds returned to me. Inconvenient, but manageable for a non-IRA. But having an IRA CD terminated and transferred (Trustee-to-Trustee) would be a more complicated matter, and even more so with a Required Minimum Distribution.
There is a reason this CU is offering a rate unmatched by other banks/CUs. It is worrisome, and I'm surprised regulators permit it with this CU's financials.
* "For terms one year or greater, interest is paid monthly (compound interest)" via Rates page.
Dormant Account Fee
(no account activity in a 1
-year period)
:
Monthly Fee
for Each Account
(excludes
balances >$5000)
......
$10.00
The above statement is in the Disclosures. Does this mean that >$5,000 must be kept in the required savings account if there is "no activity", as well as the CD account?
I think you might have misunderstood. It is common for some cu/banks to charge an inactivity fee. If you will deposit $1 a year into your savings account you should be safe, and not charged a $10 fee. However, if you open a CD and it is for $5000 or more they will not expect you to deposit the $1, they will not charge you $10 for inactivity. If your CD is for $1000, you will need to plan on depositing $1 into your savings account every year to avoid the $10 fee, and that will not affect CD account.
Last time I checked NCUSIF, they could get the Fed to advance unlimited amounts.
This is the reason I don't want money insured by private share insurance. ASI (ESI is a sub) had to make an "advance" of $20 mill just to Silver States Schools Credit Union in Las Vegas. At the time ASI had $130 mill in reserves. They also stopped responding to my inquiries about that time.
Really sucks. Guess Adriana knew something we didn't...
I did the latter yesterday, after first depositing my check at a Shared Branch, and having it sent over to Garden. That itself was no cakewalk, since my account was locked (having had no transactions since I opened my CDs 4+ years ago). [See notes above about adding a dollar a year, to let them know you're still alive and to keep your account active.] Confirming what RWin wrote, I was also told that after 3 years of inactivity your savings account goes dormant. (And you can't deposit into it, until it's unlocked, which I had them do yesterday, after the shared branch helped me pinpoint the problem).
Funny thing is that Garden, while continuing to mail me statements each quarter, has never informed me that my account was dormant -- So how was I to know? But a good thing [also confirming RWin's info & advice] is that, since my CD balance was above $5,000 there were no charges imposed or accrued.
Anyway, here's the problem: Having just found out from you kind & alert folks that today (!) November 9th, was the last day for this CD offer, I am without confirmation from Garden that I actually obtained it. I sent secure email several times -- yesterday, this morning, and this afternoon -- but, as of this writing (24+ hours later) I've received no response. I also called them this morning, to follow up, and the CSR with whom I spoke sent a status inquiry to the CD department while I was on the phone with her. But, again, there's been no response.
As it stands, only $200 of my much larger deposit is available; the rest is on hold And the total sum remains in my Share Savings account; there's no sign of any CD having been opened. [They could simply open up the CD, and put my money on hold for four years, for all I care!]
It's a long weekend to have one's fingers crossed, but let's hope this was just more evidence of how overwhelmed, overworked and backed up they are over there in New Jersey (from all our requests) and pray that by this time next week everything will have worked itself out in our collective favor.
Again, I just wanted you to know that, even as an existing member of Garden (with three five-year CDs) it still has not been easy trying to open this 48-month (4-year) 4.08% APY CD.
Best wishes and good luck to us all, and Happy Veteran's Day!
Oh good, that's a relief.
Of course, as they say, "YMMV" -- but at least there's hope, Ann! And a precedent to fall back on, and refer to . . .
I wish there were a formal, business-like way to verify that my transferred funds will be used to open the desired CD. I had no application to complete, and received no confirmation number. My only instructions, as an existing member, were to send a request for such via their "Secure Email" -- which leaves no electronic paper trail that I can review, or refer back to. So it's all on blind faith!
https://www.gardensavingsfcu.org/services-tools/tools/rates.html#share-certificates
https://www.gardensavingsfcu.org/notice-details.html
gregk (Comment #97) -- I believe the answer to your question is: to inform people that have have discontinued offering the 4-year special. "Due to the tremendous success of our certificate promotion, we have concluded the special rates that were being offered as of the end of business on Friday, November 9th."
In fact (and, possibly, per my expressed wish) the opening date seems to have been back-dated to the day of my initial deposit, last week, since my maturity date corresponds to four years from then -- and not from today [the CD matures on the 8th, rather than the 13th, of November 2022] -- with $8.22 in interest already accrued.
This information is found by clicking on the account title [not "Quick Peak"] and then drilling down into "Account Info."
But, peculiarly -- also under "Account Info" -- while the "Dividend Rate" rate is listed as 4.00%, the APY is not 4.08%, but 4.074%. Was there a rounding error in the initial promotion?
A 4% rate, compounded daily, results in an APY of 4.081%.
A 4% rate, compounded monthly (which I think is how Garden Savings does it), results in an APY of 4.074%, as shown on your online account information.
My guess is that it's not a rounding error. It's that a Garden Savings employee put the wrong compounding frequency into their abacus.
so keep an eye on that. (This happened to me!) Also good idea to occasionally peek at your
email/spam folder in case something important gets diverted by overzealous spam filters ...
Still having trouble with online access but I guess I have 4 years to sort that out :P
Let me know if you have questions, but just wanted to post to say everything happened as the CSR's originally told us. Everyone was very friendly, very low wait times via phone, etc.
I had a little trouble with Ally: I had the funds in an 11 month no penalty CD. I asked them to move it to the checking account and they said the transaction would take two days!! I asked to speak to a manager and told the rep that I need the funds available in the checking now. She came back with authorization from her manager to override the typical 2 day "processing" period, and transferred the funds from the CD to checking today so I was able to do the transfer. Don't take "no" for an answer. I have found that asking to speak with a manager gets things done more in my favor.
I got my online access today and my CD was set up yesterday as they said. You may want to deposit check at shared branch if you can do that.
RECAP:
- Wednesday, Applied online (that night they charged my VISA $5)
- Thurs. They called , I missed call
- Friday I called back, they emailed Docs, I emailed back.
- Saturday I went and deposited check at Co-op
- Sunday set up online banking (no immediate access)
- Monday they were closed for holiday
- Tuesday they opened my CD, called left message that it was done
- Today they emailed me that I have access to online banking. I logged on and I see the CD was set up yesterday with no hold on my deposit from co-op branch. That check only cleared my bank this morning at 9AM.
she has to be registered . then you tap on their name. it opens PM
I remember the Andrews 7 year 3% offer not even 2 years ago that still has 5+ long years to run at a now inferior rate.
We all got conditioned during the long rate drought to immediately grab anything that looked exceptional.
It's not a good strategy in the current environment, but people can't change their mindset.
Also this CD fit nicely as the 4 year rung in a 5 year CD ladder so will continue to ride the weighted average up over time. But a word of caution on rates, is you just never know. If the stock market collapses and/or the economy goes into a recession over the next few years one may wish they had some funds locked in at this rate.
I do have the same minor rate discrepancy previously mentioned (4.074% stated vs 4.08%), but the account already reflects one day of 4.00% interest accrued in the CD, so they could be actually doing daily compounding (4.08% equivalent) rather than the monthly-based rate displayed.