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.
|2.02%||$500||-||Garden Savings Federal Credit Union||4 Year Share Certificate|
|2.02%||$500||-||Garden Savings Federal Credit Union||4 Year IRA Share Certificate (Traditional, Roth, CESA)|
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.
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.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|4.08% APY||4-Year Share Certificate||Garden Savings Federal Credit Union|
|3.35% APY||42-Month CD||Connexus Credit Union|
|3.25% APY||45-Month CD Special||Consumers Credit Union (IL)|
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.