Great River Federal Credit Union Adds Top-Rate 37-Month CD Special

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UPDATE 8/13/2022: No longer available.

Deal Summary: 37-Month CD Specials – Premier Advantage, 4.07% APY; Classic Advantage, 4.02% APY; $500 min/$250k max deposit; at least 50% new money; option of one rate increase throughout the term.

Availability: Easy membership requirement

Minnesota-based Great River Federal Credit Union (Great River) has added two 37-Month CD Specials, both offering exceedingly competitive rates. The Classic Advantage CD Special currently earns 4.02% APY, with the Premier Advantage CD Special earning 4.07% APY. The minimum opening deposit is $500, with a cap of $250k. At least 50% of the opening deposit must be new money, simply defined as funds not on deposit with Great River.

This limited-time offer has no end-date specified and will “end at the Credit Union’s discretion.” About a year ago, Great River introduced an exceedingly competitive CD Special, and due to overwhelming response, it stopped accepting applications just a few days after my post. So please keep that in mind if you try to apply for this CD.

The CD Specials are also available as IRA CD Specials (Traditional and Roth), earning the same APYs with the same deposit requirements.

Classic Advantage and Premier Advantage

Classic Advantage and Premier Advantage, refer to the type of accounts offered by Great River, with Classic Advantage being the default:

Classic Advantage Accounts give you access to all of the products and solutions that the Credit Union has to offer, with no minimum balance requirement.

Premier Advantage Accounts reward our members for taking advantage of the various lending and savings products we have to offer. With a combined savings/checking account balance of $15,000, or an open loan above $15,000, Premier Members enjoy a $5 discount on safe deposit boxes, Share Certificate bonus of .05% APY, 1 Free box of checks per year, and free corporate checks.

Bump-Up Feature

The bump-up feature may be used once at any time throughout the 37-month term. In my opinion, the idea of the bump-up option is actually better than the reality of the bump-up. The bump-up rate would apply to a new 37-month CD Special rate and as the 37-month CD Special may “end at the Credit Union’s discretion,” there’s no guarantee there will even be any future 37-month CD Specials offering a higher rate.

Early Withdrawal Penalty

According to CSR, a CD Special can only be closed early: no partial withdrawals are allowed. As stated in the fine print on the Share Certificates page, the Early Withdrawal Penalty (EWP) reads as follows:

The penalty assessed on the amount withdrawn will equal: three months dividends on terms one year or less, six months dividends terms greater than one year.

Funding and Maturing Funds

According to CSR, funds must be on deposit at Great River before a CD Special can be opened. Great River participates in the CO-OP Shared Branch network, making the transfer of funds relatively easy. ACH and wire transfers can also be used to deposit funds.

Maturing funds can be distributed by check to the address on file or transferred to a Great River savings account. A maturity notice will be sent 20 calendar days prior to maturity. There is a ten day grace period before a 37-month CD Special renews as a 36-month CD.

Up to six beneficiaries (equal shares) can be designated. While Social Security numbers are not required for each name beneficiary, “they are greatly appreciated.”

New Member Checking Account Bonus

Great River is also offering a new member bonus of $100 for opening a checking account or credit card. In addition to opening the checking account, the new member must either establish direct deposit or make at least five debit card transactions within 60 days. Full details are available at this Great River bonus page.

Availability

Headquartered in St. Cloud, Minnesota, Great River Federal Credit Union joined the American Consumer Council (ACC) in May 2021, which allowed an expansion of the “field of membership (FOM) to include anyone who joins the ACC.” Prior to offering an easy membership requirement, the FOM was limited to three west central Minnesota counties.

Employees of more than 36 Minnesota Select Employer Groups also qualify for membership, as do immediate family members (siblings, parents, children) of current Grand River members.

Joining Grand River can be done online, through Great River’s Go Live-video chat, or at any of the seven Minnesota branches located in Big Branch, Foley, St. Cloud, Sartell, Sauk Centre, Sauk Rapids, and Waite Park.

Following the recent acquisition of two out-of-state credit unions (GEM Federal Credit Union and Four Flags Area Credit Union), Great River now has a brick-and-mortar presence in Minot, North Dakota and Niles, Michigan.

While checking and savings accounts can be opened online, CDs have to be opened in-branch or over the phone (888.211.5393). CSR stated that opening a CD can be done over the phone AFTER the membership application is approved and funds for the CD have been deposited in a Great River savings account.

Your initial $5 deposit entitles you to ownership of the credit union.

Readers have reported that a hard credit pull is done in the membership application process. This can ding your credit score.

Grand River has joined the CO-OP Shared Branch and ATM networks, giving its members,

nationwide access to over 5,600 shared branches to cash checks, make deposits, and withdraw money wherever you go! That’s not all, the CO-OP ATM Network has nearly 30,000 ATMs nationwide you can use for FREE!

Credit Union Overview

Great River Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.11% (excellent) based on March 31, 2022 data. In the past year, Great River has increased its total non-brokered deposits by $72.11 million, an excellent annual growth rate of 32.76%. Please refer to our financial overview of Great River Federal Credit Union (NCUA Charter # 24632) for more details.

Great River Federal Credit Union was originally chartered in 1948 as Machinist Federal Credit Union, serving the employees of Franklin Manufacturing’s refrigerator factory. The first rebrand (St. Cloud T&L Credit Union) occurred in 1964 when the FOM expanded to include a variety of other trade groups. The Great River name was chosen in 1999 because the FOM had grown to include more than 80 employer groups in Minnesota, the source of the Great River (aka, the Mississippi). In 2001, a community charter was adopted to include three Minnesota counties. Great River Federal Credit Union is currently the 18th largest credit union in Minnesota, with more than 19,000 members and assets in excess of $320 million.

How the 37-Month CD Specials Compare

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, no banks or credit unions have a higher rate than currently offered on the Great River Federal Credit Union 37-month Premier Advantage CD Special and 37-month Classic Advantage CD Special. The following table compares the 37-month CD Specials to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.

The above information and rates are accurate as of 8/12/2022.

To look for the best CD rates, either nationwide or state-specific, please refer to our CD Rates Table page.

Related Pages: South Bend CD rates, Minneapolis CD rates, Minot CD rates, 5-year CD rates, IRA CD rates, nationwide deals

Comments
jeremyharrison
  |     |   Comment #1
Their process to open a CD is ridiculous and credit-damaging - AND EVEN THEN THERE IS NO GUARANTEE THAT YOU CAN GET THEIR RATE You have to first apply for membership, at which point they do a hard pull on your credit, lowering your FICO score. Then, after they get around to accepting you, they require you to open a liquid account first and THEN somehow transfer funds into it (and you cannot do that online). THEN, once your funds are finally in your new liquid account, THEN you can apply for a CD - but at that point no one has any idea WHAT THE RATE WILL BE - by then it might be 1% - YOU CANNOT LOCK IN A RATE AT ANY POINT. So, your credit is damaged, and you have no guarantee that you can get the rate they offer now. INSANE, RIDICULOUS, STONE-AGE PROCESS that is a pure gamble. Not worth it at all if you value your credit score.
P_D
  |     |   Comment #2
Any FI I that does a hard pull with no application for credit should be boycotted. It's an outrageous and unethical practice that damages a depositor's credit score usually without their knowledge. If that's their first act of customer service upon opening an account, you can imagine what other unethical practices they have. You are lending them your money. They are the borrower. You should be doing the hard pull on them.
deplorable_1
  |     |   Comment #4
Well I wouldn't say boycotted I have had hard credit pulls to open a few credit unions and it was worth it in the long run. It seems this happens frequently with credit unions vs. banks at least that's been my experience. My criteria is that if a hard pull is done in needs to be worth a minimum of $200 in value one way or another. I recently got a $200 bonus for opening a Wells Fargo 2% cash back card although that was actually applying for credit. I agree that if you are not applying for credit a hard pull should never be done at all. Why can't they just do a soft pull? I mean isn't that the purpose of a soft pull when you are not applying for credit?
FirstNation
  |     |   Comment #7
Stupid, yes.
Unethical, no.
Looks like the last special only lasted a couple of days.
It comes down to, do you want the 4.0%+ rate or not?
Personally, I don't think it's worth the bother.
jeremyharrison
  |     |   Comment #26
The hard pull would be worth it IF one knows they will get the rate; It looks like they have now pulled the offer. So if I had applied yesterday as I had intended before speaking with the CSR to get details, I would have had a hard pull, then would have been accepted and given an opportunity sometime today or Monday to set up a savings account - BUT WOULD NOT HAVE GOTTEN THE 4.07% RATE ON THE CD!!!!! Exactly what I feared. I hope none of you got nailed by their amateur and credit-damaging practices.
deplorable_1
  |     |   Comment #3
Wait they do a hard credit pull and don't allow you to lock in that rate on the CD? Not what I wanted to hear. Great I have a low score at the moment due to a few 0% no/low fee balance transfer offers. I wonder what the minimum score requirement is I really like the rate and bump option on this CD. I don't want to lower my score further for nothing and possibly get turned away and/or have that rate slip through my fingers and have another useless account on the books to deal with. : /
P_D
  |     |   Comment #5
Precisely dp1. I've been faced with that same scenario before during the last round of rate increases. A hard pull with no rate lock. I walked away from a few of those deals.

Coincidentally, I also had an experience similar to yours in that I enjoyed and am still enjoying a CD I have with a credit union that did a hard pull.

But in that case, the experience was even worse because the CSR told me that there was a soft pull only, and it turned out to be incorrect. I got lucky, but you should not have to rely on luck when you're lending your money.
blazer9
  |     |   Comment #6
You all would find something else to start crying about.
Keeping it more Local that way.
Smart move.
Keeping the Whales stranded.
111
  |     |   Comment #28
Blazer - DepositAccounts.com has this handy "Bank Rates Map" feature that enables me to see rates at local FIs geographically near me. I run it every once in a while and did so again today. As in the past, it showed me a dystopia of post-Armageddon, scorched-earth rates so low as to nearly defy belief. Sorry, man, but I tried.

“Save the Whales!”
me1004
  |     |   Comment #8
I see a real problem in the rate and APY they are listing. They are listing a rate of 4.0% and that coming to an APY of 4.07% compounded monthly.

That compounding sure sounds low. And their own calculators say a 4.0% rate compounded monthly should come out to 4.19% APY. It sounds like they are not really offering a 4.0% rate as stated. Their calculator says a 4.7% APY would come from a rate of 3.895% compounded monthly.

I have a real problem when the rate and APY listed are not correct -- which one is wrong, what am I really getting? It leaves me not knowing what I'm getting into, and that is not acceptable. The APY is what really matters, but when you have wrong numbers, you can't be sure of anything of what you are getting, whether your yield will be more or less - wrong numbers are unreliable in either direction.

I do also agree that to not let you lock in the rate while waiting on them to process your membership and the CD application is a problem too -- especially with Ken noting right up top that they made a similar offer a year ago and withdrew it within just a few days. And this offer has already been out there for three days, since Aug. 9.
P_D
  |     |   Comment #9
"I see a real problem in the rate and APY they are listing. They are listing a rate of 4.0% and that coming to an APY of 4.07% compounded monthly."

If the APR is 4.00%, and compounding is monthly, then an APY of 4.07% is correct. It comes out to 4.07415% (rounded) to be more precise.
me1004
  |     |   Comment #49
Well, when I ran their calculator, it said otherwise. I ran it a few times, set for monthly compounding as they say.
#51 - This comment has been removed for violating our comment policy.
sharon907
  |     |   Comment #10
I often consider how people on this site contort themselves arguing over minute details, when as a group, people don't know seem to know the difference between APY and APR.

The formula for APY = (1 + Rate / Interest Compounding Periods) ^ (Interest Compounding Periods) -1

In this case, APY for 4% compounded monthly, does in fact, equal 4.07%.

https://www.greatriverfcu.org/money-market-and-share-certificates/

That's my five minutes for this time site, today.
And their own calculators say a 4.0% rate compounded monthly should come out to 4.19% APY. It sounds like they are not really offering a 4.0% rate as stated. Their calculator says a 4.7% APY would come from a rate of 3.895% compounded monthly.
#11 - This comment has been removed for violating our comment policy.
#12 - This comment has been removed for violating our comment policy.
#13 - This comment has been removed for violating our comment policy.
#34 - This comment has been removed for violating our comment policy.
FirstNation
  |     |   Comment #24
Five minutes a day.
Does that include the FED blog?
dale26s
  |     |   Comment #14
Also they advised today funds need to be wired in-no ach transfers-another hassle
fred_b
  |     |   Comment #15
When you apply to a FI, there is sometimes a point where they ask you to authorize a procedure to verify your identity ... and then come the dumb questions like what color was your 2013 Honda Accord. Do such questions indicate that the FI is doing a hard pull?
111
  |     |   Comment #17
Not in my experience. I've received hard pulls both when I got those so-called "challenge questions", and when I didn't.
fred_b
  |     |   Comment #16
Well they've already taken the deal down. The 37-month CD is no longer on their website.
blazer9
  |     |   Comment #20
Classic and Youth/Teen Members

$500 Minimum Investment

Change Effective - August 12, 2022
Term

Dividend Rate

APY10
Compounded Monthly
6 Month .55% .55%
12 Month 1.10% 1.11%
18 Month 1.20% 1.21%
24 Month* 1.30% 1.31%
25 Month** 2.70% 2.73%
36 Month* 1.35% 1.36%
48 Month* 1.70% 1.71%
60 Month* 1.90% 1.92%
111
  |     |   Comment #18
Guess the Great River dried up to a Tiny Trickle. Is this one the new DepositAccounts non-longevity record?
fred_b
  |     |   Comment #21
Well, Ken mentioned this deal on 8/10 in his Latest Liquid Bank Account Rates post. I applied and got my savings account number on 8/11. Today 8/12 my wire has just been posted in online banking. So I'm about to call them and ask them to set up my 4.07% APY 37-month CD. They assured me again earlier today that since my account was opened yesterday they would honor the CD rate.  
And they did! I got the deal.
FirstNation
  |     |   Comment #22
Anybody get an IRA done within this time window?
111
  |     |   Comment #25
Now, THAT would be amazing. Truly a Guiness Book feat.
Robb
  |     |   Comment #23
Well played Fred! One has to be quite nimble doing these high point of the cycle deals.
jeremyharrison
  |     |   Comment #27
Good for you! I called on 8/11, and if I had applied, the only result would have been a hard pull on my credit, followed by (in my best Seinfeld Soup Nazi voice) NO 4.07% CD FOR YOU!!!!!!!! after I got my money wired into my new savings account with them. Just credit score damage and wasted $$ to send a wire and wasted time getting my $$ back out of their lousy savings account. Garbage credit union, IMHO
P_D
  |     |   Comment #30
I think the takeaway is, that if there is no time to do proper due diligence and the proper account opening and funding process don't do the deal.

I don't just throw money at some place I've never done business with before in a rush before I've had adequate time to evaluate it. If it requires a rush I don't do the deal. Buying a CD should not be a speculative investment because the return isn't high enough to pay for speculative risk.

I've walked away from a number of scenarios like this one for that reason. I don't regret it.

Some financial institutions are much better than others, understand the depositor's point of view and make accommodations to instill confidence. Speaking for myself I would rather take a few basis points less if necessary to deal with that kind of institution.
deplorable_1
  |     |   Comment #31
No kidding 111 good thing I decided to pass on this one due to a hard pull with no guarantee of a rate lock. It takes me a day or two just to evaluate whether it's worth the time and hassle and by then they yank it. lol Oh well this is just the first battle it's winning the war that counts.
111
  |     |   Comment #32
d1 - Indeed, there will be other 4% CDs. This "Great River" scenario probably has more to do with this small FCU being overwhelmed, than with anything about US macroeconomics. Now, 5% or higher CDs - long-term, anyway - on that we'll just have to wait and see. More problematic. It's a bizarre rate environment now, in any case.

Don't know if DA.com keeps records, but this has to be right up there re. shortest-term-offers ever. Somewhat unfair to those attempting to deposit. Guess “Great River” has other concerns they consider to be more important. May come back to bite them later, with those who attempted to become customers.
deplorable_1
  |     |   Comment #35
I know the yield curve is throwing a monkey wrench on long term CD rates. I think we will get higher CD rates but maybe only 1-4 years vs. 5-7 years. On top of that the inflation numbers came out a bit lower than expected and the CME FED watch tool has the odds back to .5% at the next FED meeting again. This could flip back as more inflation data comes out but I think another .75% hike would get things going and stop the stock market from getting waaay ahead of itself.
P_D
  |     |   Comment #36
I have two problems with a deal like this. One is the hard pull, and two is the no rate guarantee. That puts you in a situation where you will have your credit damaged and might end up funding an account that you don't even want. Then you have to undo the funding and are stuck with a hit to your credit score as a thank you. That's an unruly and unpredictable process inconsistent with the safety of CDs as an investment.

If they give you a certain number of days after the application process is completed where the rate is guaranteed to get it funded, let's say at least 10 days, that deal is much more attractive to me.

Except for the hard pull, which I think is unethical because of the way it's done without the expectation of the depositor, I think an FI is entitled not to guarantee the rate if they wish. But in most cases anyway, if they don't, they won't be getting my money.
111
  |     |   Comment #41
P_D - I pretty much agree. But on the rate guarantee issue, there just may not be as many FIs that offer rate guarantees as in the last rate peak. At least as I remember it, back then there was a gradual lowering of rates in the latter half of 2019. I don't recall a lot of economists back then predicting a serious, fast recession or other event that would cause the Fed to drop rates fast. Employment was certainly not a problem for the Fed in 2019. Of course there was a huge, fast drop in early 2020 due to COVID, but the impact of this was predicted by exactly nobody (at least, no prominent economists).

Fast-forward to today. Arguably there are several reasons, not mutually exclusive, why FIs may fear future financial changes more than they did in 2019. Here are three -
1) They've now seen how quickly a pandemic can drop rates (or how quickly a government's misguided response to a pandemic can drop rates, but that's a different topic for another day). They fear either a new virus, or resurgences of mutations of this one.
2) Both a regional war (a la Ukraine) and a larger war (China, Russia) are now seen by many as more likely, increasing overall uncertainty.
3) This time around, a lot of economists ARE predicting an upcoming recession, increasing the changes that the Fed will have to whipsaw rates back down again very quickly.

If I were a banker, I'd be a lot more hesitant to offer rate guarantees than in 2019, unless and until the marketplace absolutely forced me to do so.
P_D
  |     |   Comment #46
"If I were a banker, I'd be a lot more hesitant to offer rate guarantees than in 2019, unless and until the marketplace absolutely forced me to do so."

Not sure if I agree with every point 111 about a relatively greater aversion to offering rate guarantees now than in the last round of rate increases, but get the gist of what you are saying. I also agree with the notion that if they can get all the funding they need without even giving a few days rate guarantee, and don't care about relationships with depositors like me, then yes, by all means they will likely opt not to offer the rate guarantee. It's a rather short sighted policy in my view, but that is their choice to make and depending on their financial situation I also understand it may be their only choice.
Cdbob
  |     |   Comment #29
Ken mentioned this deal on 8/10 in his Latest Liquid Bank Account Rates post. I applied and got my savings account number on 8/11. Today 8/12 I transferred money via shared branching and they put a 12 day hold on the funds. The CSR said the hold was placed by the credit union the the funds came from and I should call them and get the hold lifted. I called the credit union and they said they didn’t put a hold on their own check and they said they would call great river and fax them a copy of the cashiers check which they did. I then called great river and they said the person who could lift the hold has gone home and I should call back Monday. The CD is still in limbo. The worst part is I closed a CD and paid the penalty to get this one. I’ll give an update on Monday as to whether they honor it. Ridiculous!
deplorable_1
  |     |   Comment #33
Oh I have had issues using the "shared branch" option because you are also limited to the rules and funding limits of the shared branch itself. There needs to be time to open an account, transfer funds via ACH for free and have the rate locked from the time of the application. If not it could be all for nothing and a total waste of time. I have opened accounts this fast before but I was guaranteed the rate by the CSR over the phone and got an email stating the rate would be locked.
Cdbob
  |     |   Comment #37
12 day hold? Wow! I’ve never understood why they can’t just put a hold on the CD. Other CU’s have done that for me in the past. I’ve also never understood why CU’s make an offer available and then make it exceedingly difficult for one to take them up on THEIR offer. Weird and costly.
Cdbob
  |     |   Comment #70
We’ll it appears that they will honor the rate for me but they are sticking with the 12 day hold on the shared branching transfer. I just don’t understand why they can’t put the hold on the CD. That’s something that NASA just did on a CD I opened today. I guess it give them 12 days use of my money for free but it cost me $300 in lost interest and sours the relationship for next time if there is a next time. IMHO not a good business model.
deplorable_1
  |     |   Comment #71
Yep I had this happen to me before too at BoA and a credit union shared branch. I was able to get both holds reduced to 2-3 day but I had to go to both places in person and talk to the branch manager. In one case if they didn't reduce the hold I would have lost the CD rate. I'm so glad they decided to honor the rate for you how is that hold your fault? Sheesh
Cdbob
  |     |   Comment #72
Actually I could have avoided the issue by wiring the money and I tried to, but the funds we’re coming from Sun East CU and they don’t do wires. That also was a first for me, a CU that doesn’t do wires. I guess they are making so much money that they don’t need an extra $25 outgoing wire fee. Go figure. Therefore I had to take the shared branching route. The 12 day hold is also a first for me. I did check out the credit union rules and for large deposits they are within their rights to increase the hold time. Live and learn.
slimjimmy51
  |     |   Comment #38
Deposit accounts should never list this credit union on their site again. The way they do business is horrific. I’m sure I’ll take a hit on my credit score just for applying then get the rug pulled out from under me with a rate change. Thankfully I never transferred any funds.
Cdbob
  |     |   Comment #39
I second that Ken!
spentcattle
  |     |   Comment #40
While it didnt work here because the window closed so quickly for the offer folks may want to try contacting where they have a CD to see if they match offers. Some claim they do. I tried but I know by the time it gets to the branch manager they will see link is no longer good.
But maybe with a week plus on a posting with a good rate it could be worth a try.
RickZ
  |     |   Comment #42
I think everyone is jumping the gun on this. Yes they're a small credit union ($292MM in deposits) and they pulled the CD special quickly but we've seen that before. However at this point we don't know how they'll treat existing applications. I applied for an account on 8/11 and while it may well turn out that they'll act dishonorably, until I know for sure I'm willing to give them the benefit of the doubt.
Choice
  |     |   Comment #43
Soooo, Rick, your fellow posters are jumping the gun (your words) when they speak from experience. Again, the CU can respond…and elected not to. DA could also contact the CU for comments…and it…? Knowing the adverse info you are still going forward…very telling!
  Ethics 101 course was apparently not offered this CU.  Then again I’m reminded of US Bank posting its purported ethics awards in their lobbies across the country and this was after writing hundreds of millions in dollars for government imposed penalties!
spentcattle
  |     |   Comment #44
I think its completely unfair for a credit union to put you in a position where you will break a CD pay the penalty and then tell you that same day or next day their offer is no longer good. There needs to be a 72 hour window or something like that. This almost happened to me when I considered breaking a CD yesterday for this.
FirstNation
  |     |   Comment #57
It's the credit unions fault that you would pay a penalty to break a CD? If you're not a current member of the credit union why are they obligated to give you any sort of "window"? Rate-chasers want preferential treatment. That's pretty rich.
RickZ
  |     |   Comment #45
Choice, All I’m saying is that I’m going to reserve judgment until I know for sure that the credit union will not honor the CD rate for people who already submitted applications and had their credit pulled.

And by the way, it’s really tiring how you’re always ragging on Ken for not doing his job as you see fit. I for one think he does a great job. Maybe you should ask for your subscription cost back.
Choice
  |     |   Comment #53
July 25th was a posted notice on DA posting issues…and it has been stated by DA as being fixed yet…. No one has stated they were asked to be part of a beta test to assist DA …most engineers are well aware of various customer/software tools. Hope your current CU works out.
FirstNation
  |     |   Comment #59
What does ethics have to do with it?
If a credit union doesn't pander to a bunch of rate-chaser's "standards" they are the incarnation of evil?
throttleplate
  |     |   Comment #52
I applied on 8/11 and then called them up on 8/12. Asked a csr about being locked in and she said that they cant guarantee the rate by the time they get to your application if enough money was brought in to meet their goal funding.
Asked her about the hard pull and she didnt seem to care and then asked me if i want to pull my application but the damage has allready been done so let it ride and see what happens.
FirstNation
  |     |   Comment #58
Dishonorably?
What's with you rate-chasers?
If they meet their funding goals they have no obligation to you.
They're supposed to be acting in the best interests of the credit union.
Not a bunch of rate-chasers who never heard of them before this deal.
deplorable_1
  |     |   Comment #62
@First: Why do you keep referring to CD investors as "rate chasers"? That's a reference to those who keep switching liquid banks accounts every other day for a small rate increase. Getting a guaranteed fixed rate for 5 years is the opposite of rate chasing. The whole point is so that you don't have to chase rates. Only a fool wouldn't go for the highest rate possible on a long term CD in return for locking up your cash for so long.
P_D
  |     |   Comment #68
Have to agree that derogatorily calling efficient investors "rate chasers" is not a very good characterization. I would call the people here potentially some of any financial institution's best sources of funding instead.

As long as it's within the bounds of the law they can do anything they want, and it goes down in the category of a business decision.

I'm not convinced that this kind of program is in the best interests of the credit union as was previously suggested. They made a business decision to do hard pulls when you are not applying for credit, no kind of rate assurance, and planned a promotional gimmick that ticked off some of their potentially best sources of funding for future needs.

They have a right to make any business decisions they wish but when you play the long game using short game plays it's not always the best decision.

I don't think that speaks well of their ability to manage in the best interest of the credit union... or for that matter my money.
jimdog
  |     |   Comment #47
I'd rather buy a federal home loan bank GSE bond paying over 3 percent for 6 or 9 months. It's also state tax free which makes the effective rate about 3.25%! Then roll over to a 3.5 percent to 4 percent one at maturity as the FED continues to raise rates. Rinse and repeat for the next couple of years.
111
  |     |   Comment #48
#47 - Interesting idea. I've never bought any of these. A question - do you know how these performed way back in the 2007 - 2010 housing/financial crisis, safety-wise? Any defaults?
P_D
  |     |   Comment #69
"...During the early part of the last financial crisis, the FHLB system played an important stabilizing role as a "lender of next-to-last resort" by providing funding--collateralized by mortgages and mortgage related assets--to banks, thrifts, insurance companies, and credit unions. However, developments over the past few years have increased the tail risks that FHLBs pose to the financial system....

The FHLBs have long been considered relatively safe intermediaries because their loans to private member institutions are over-collateralized, they can jump to the front of the line when a borrower defaults--the so-called "super lien" of their loans--and they benefit from an implicit government guarantee investors appear to associate with federal agencies. Moreover, changes to prudential regulations such as the revised risk-based capital requirements and stress tests have likely made the FHLBs more resilient.

However, their increasing maturity transformation, combined with their high leverage, leave the FHLBs more vulnerable to shocks--an issue that has been highlighted recently by the regulatory authority of the FHLB system, the Federal Housing Finance Agency (FHFA)."

https://www.federalreserve.gov/econres/notes/feds-notes/the-increased-role-of-the-federal-home-loan-bank-system-in-funding-markets-part-1-background-20171018.htm#:~:text=The%20Federal%20Home%20Loan%20Bank%20(FHLB)%20system%20was%20founded%20in,commercial%20banks%20and%20insurance%20companies.

Note the use of the words "implicit guarantee." That's not the same as an explicit guarantee. Again, nothing wrong with this investment as long as you understand the risk... Which is greater than the risk of a CD. So it's not really apples to apples.
me1004
  |     |   Comment #50
It looks like the offer is no longer being offered, was taken down on Friday, same day Ken posted his story:

https://www.greatriverfcu.org/money-market-and-share-certificates/

So, as many are complaining here, if anyone started the proceess to open the membership and then the CD, too late, rate is gone, but you suffered the hard credit pull.

With that speed of pulling it down, it was never real.
55Chevy
  |     |   Comment #54
For those that are complaining about not receiving the offer in time and also getting a Hard credit pull just suck it up.When you applied to the CU they never guaranteed the rate, and you should have known about the hard credit pull.Don't whine after the fact if you don't get your way when all along you knew the rules of the game.Nobody twisted your arm to pursue the offer, it was all your choice (adult Choice) so now live with that decision you made and move on!
deplorable_1
  |     |   Comment #63
I knew this would happen so didn't take the bait but it's not really too much to ask for any FI to hold the rate from the day of the application. If they refuse to do that then they really have no intention of honoring the rate. It's a reasonable expectation that if they are doing a hard pull to join that at the very least they can hold the rate for you until you get the funds into the account. None of these complaints are in any way unreasonable and this credit union should be embarrassed for the way they handled this. When they get slammed hard this will stop other FI's from pulling this same crap on the next CD deal that comes out.
moneysaver
  |     |   Comment #55
Even though the rate and offer here largely appear to have been a brief mirage, they still were notable for at least one other thing:

Being one of the first tiny green shoots of 4%+ rate offers surfacing after a long deposit rates drought. Hopefully in the months ahead, including near or after the next Fed meeting in late September, there will be more and better such offers.
andybuji
  |     |   Comment #56
Yeh I'm with 55Chevy on this one. This is a great smaller FI, who has a dedicated professional CSR team, that tends to come out with leading national rates. As such they can get hammered with applications. However, the way they handle it as compared to a CFG is night and day.

Do your homework, meaning read the previous post from October, and you'll know they do a hard pull and can close the rate down after two days. First, get  your application into the system before the rate comes off the website - this is somewhat obvious but should be emphasized.  Then you'll get a personal call within 2 days and, if  approved, the CSR will tell you your account number. I applied  on Thursday and got my call  on Saturday.  Their reasonable expectation is that you've got the funds on hand and ready to transfer. Get a wire out shortly, like within a couple of days, then call them with the term you want, and you'll get the rate advertised at the time you submitted your application.
Choice
  |     |   Comment #61
And perhaps DA will expand on its posts/disclosures (what works and what doesn’t) for the benefit of its readers
rockies
  |     |   Comment #64
DA should probably remove Great River from the Popular Promotions banner on the Promotions, Deals and Rate Changes page as it appears they are not very popular right now.
ChrisinFla
  |     |   Comment #65
Question to the group...when these bank direct CD offers come up from these mostly smaller FI's, is the interest option generally, as a rule, most commonplace, etc...for the offer to be that the interest is credited only at maturity or do some offer alternatives such as semi-annually or month. Thanks for your input/experience and feedback!
deplorable_1
  |     |   Comment #67
Most CD's/share certificates not all accrue interest daily and compound monthly no matter if it's a bank/credit union or small FI. However no matter how interest is compounded daily, weekly, monthly, semi-annually, annually or even all at once at the end of the term the APY should accurately reflect what you are earning. So basically just look at the APY and you are good. Now there have been a few instances where the APR or APY is incorrect so it's best to double check by using this formula:
APY is calculated using this formula: APY= (1 + r/n )n – 1, where “r” is the stated annual interest rate and “n” is the number of compounding periods each year. APY is also sometimes called the effective annual rate, or EAR.
Or you can use a calculator since it's way easier. ; ) https://www.omnicalculator.com/finance/apy
RichardW
  |     |   Comment #75
deplorable_1…The formula you listed is missing one important feature, the “raise to the power of” symbol. With a QWERTY keyboard layout, that is typically represented with the “^” symbol. A valid formula would be: APY = ((1 + r/n)^n) -1
RichardW
  |     |   Comment #76
ChrisinFla…Banks and credit unions vary on their frequency and disbursement method of CD interest payments. Contact the bank or credit union to learn how they manage CD interest payments. For example, Ally allows the following frequency choices: monthly, quarterly, semi-annually, or annually (end of year), and they allow the following disbursement methods: credit to the CD, send a check to the owner, or deposit it into an account.
rockies
  |     |   Comment #66
@ChrisinFla
I use CD's from credit unions/banks primarily in my IRA. I always check to make sure I can withdraw (or transfer) accrued dividends/interest with no penalty for two reasons...to provide income, if needed, or to stay below $250K insurance cap. In every case, my credit unions/banks have agreed to do this. However, some will limit frequency. So, you just need to ask up front if this is permitted.
Preschooler
  |     |   Comment #73
I just got off the phone with them, today Wednesday. I applied last week too. If you can sign the documents and get the money there by Friday, they are honoring the deal. They want it wired but apparently will accept ACH if it gets there by Friday.
decades
  |     |   Comment #74
Fed minutes ...inflation to remain uncomfortably high ..more rate hikes coming ..https://www.msn.com/en-us/money/markets/fed-sees-interest-rate-hikes-continuing-until-inflation-ease...

Did the efcu and Grand Green River deal ...but was patient about it and left a lot of dry powder. Deployed about 15% of capital. So now I'm only losing 4 1/2 % a year on my cd's with inflation @ 9%.
Same as with stocks each new bull run (Interest rates) seems to have new leaders like EFCU and Grand River. Past leaders GTE and Andrews, Penn Fed etc. having fallen by the wayside.

Was a tad nervous about EFCU, kept thinking of the video ..Going down South by Black keys

https://youtu.be/ndEQ1hnYj0Y
decades
  |     |   Comment #77
Looks like no penalty for early withdrawal if over 59 1/2 for IRA's. If I'm reading that correctly.

7. Early Withdrawal Penalty. We may impose a penalty as stated in the “ACCOUNT INFORMATION” section if you
withdraw any of the principal from your certificate account or Individual Retirement Account (IRA) before the
maturity date.
a. Amount of Penalty. The early withdrawal penalty amount is set forth in the “ACCOUNT
INFORMATION” section.
b. How the Penalty Works. The penalty is calculated as a forfeiture of part of the dividends that have been
or would be earned at the nominal dividend rate on the account. It applies whether or not the dividend
has been earned. In other words, if the account has not yet earned enough dividends or if the dividends
have already been paid, the penalty will be deducted from the principal.
c. Exceptions to Early Withdrawal Penalties. At our option, we may pay the account before maturity
without imposing an early withdrawal penalty under the following circumstances:
i. When an account owner dies or is determined legally incompetent by a court or other body of
competent jurisdiction.
ii. Where the account is an IRA and any portion is paid within seven (7) days after establishment;
provided that the depositor forfeits an amount of at least equal to the simple dividends earned on
the amount withdrawn; or where the account is an IRA and the owner attains age 59½ or becomes
disabled.
Cdbob
  |     |   Comment #78
4% is back as of Sept 7th. 50% new money required. Won't last long!
Expired - Great River Federal Credit Union Adds Competitive 63-Mo CD Special
Update 11/1/21: Due to overwhelming demand, Great River Federal Credit Union will no longer be accepting applications for this CD Special. Please do not call Great River about this Special.

Deal Summary: 63-Month Bump-Up CD Specials - Premier Advantage, 2.23% APY; Classic Advantage, 2.18% APY; $500 minimum deposit; option of two rate increases throughout the term.

Availability: Easy membership requirement

Minnesota-based Great River Federal Credit Union (Great River) recently added two 63-Month Bump-Up CD Specials, both earning exceedingly competitive rates. The Classic Advantage CD Special currently earns...

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