Greenwood Credit Union Ups 15-Month CD APY
UPDATE 5/1/2018: Good news! Greenwood Credit Union is indeed an easy membership credit union, with the field of membership (FOM) open to anyone who “opens and maintain a Share Account with a minimum of a $5.00 balance.” I spoke at great length with Fred Reinhardt, President and CEO of Greenwood, as to what happened in regards to the FOM today. Following a surge of activity from out-of-state applicants this morning, the Credit Union feared they were “under attack and shut it down,” as a precautionary move against possible fraudulent applications. In Greenwood’s defense, they were not aware of this blog post or of their 15- and 24-month CDs appearing as rate leaders on DA’s nationally available CD Rates Table. I have to commend them on their vigilance in protecting their online platform.
Bottom line, all the information in this blog post that appeared upon publication is correct.
UPDATE 5/1/2018: My timing could not have been worse: I managed to publish this blog post the day after Greenwood Credit Union changed their easy membership requirement. As of 10 am EDT this morning, Greenwood’s website had not been updated to reflect the change and the link to the online application was still functional. I spoke at length with CSR, but she was unable to give me any details concerning what had caused the change. All she could confirm was that Greenwood’s product line was no longer available nationwide through the online application. As soon as I obtain definitive information, I will edit this blog post accordingly. For the time being, I would consider this to be a local deal, available in Rhode Island. Please accept my apologies for any confusion.
When I saw the new CD rates from Greenwood Credit Union (Greenwood CU) over the weekend, I wished these very competitive rates (15-month CD, 2.50% APY and 24-month CD, 2.80% APY) were nationally available. Sometimes wishes do come true. With a $1k minimum deposit, practically anyone in the U.S. can open a CD through Greenwood CU’s online application.
The CDs are also available as IRAs (Traditional, Roth, CESA, and SEP), earning the same APYs and with the same funding requirements.
DA has been tracking the 15- and 24-month CDs since March 2011, and with exception of the last three months, the APYs haven’t been anything to get excited about. Since the beginning of February, both CDs experienced two rate increases, with the 15-month adding 180 bps, while the 24-month added 130 bps. If you’re going to compete on a national stage, having top rates makes a statement.
As stated in the Truth-in Savings document, the Early Withdrawal Penalty reads as follows:
If you withdraw any principal before the maturity date, a penalty will be imposed on the amount which you withdrew and charged to your account. The penalty will equal six (6) months dividends which would have been earned on the amount of principal withdrawn.
Share Branching
Greenwood Credit Union is a member of the CO-OP Shared Branching Network, allowing members to do business free of charge in more than 5,000 credit union branches throughout the United States, "just like you were standing in our Warwick, RI branch."
Availability
Headquartered in Warwick, Rhode Island, Greenwood Credit Union’s field of membership (FOM) is “open to everyone,” with “everyone” defined as U.S. citizens and resident aliens, 18 years or older, with a valid Social Security number. The only requirement is to “open and maintain a Share Account with a minimum of a $5.00 balance.” That’s it – no charitable foundation or association to join.
Joining Greenwood CU and/or opening a CD can be done online, or at the sole Rhode Island branch, located on Post Road in Warwick.
UPDATE 5/1/2018 - Two points concerning Greenwood CU’s online application:
1. Mr. Reinhardt emphasized that they try to accommodate everyone who applies online, but their top priority is making sure they can confirm potential new members’ identities. While the process may not be warm and fuzzy, Greenwood CU is doing their due diligence, to ensure all parties are protected.
2. A DA reader recently wrote in a review, “You must leave Greenwood's website and are told that they don't have responsibility for their 3rd party application website, which my Mcafee antivirus said was unsafe.” I had qualms when I saw that warning, but when I saw it was an Andera online application I wasn’t worried. (Andera is a leading provider of online applications for many credit unions and this was the first time I had ever seen that type of warning.) Mr. Reinhardt commented that when the Credit Union first added the online application, they were told that this "speed bump" notification had to be included, but given all the concern it causes, that notification will be removed in the near future.
Credit Union Overview
Greenwood Credit Union has an overall health rating of "A" on DepositAccounts.com, with a Texas Ratio of 2.14% (excellent), based on December 31, 2017 data. In the past year, Greenwood CU has increased its total non-brokered deposits by $16.05 million, excellent annual growth rate of 4.11% growth rate. Please refer to our financial overview of First Internet Bank (NCUA Charter # 66594) for more details.
Establish in 1948, Greenwood Credit Union’s original FOM included the residents of the City of Warwick. Organic growth and expansion led to the inclusion of Kent County residents, which led to the entire “State of Rhode Island and beyond” being served. “And beyond” refers to the recent change to an easy membership requirement institution, offering membership to virtually everyone in the country. Greenwood CU is currently the third largest credit union in Rhode Island, with more than 60,800 members and assets in excess of $496 million.
How the CDs Compare
When compared to 155 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and nationally available, Greenwood Credit Union’s 15-month CD APY currently ranks first.
When compared to 202 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available nationwide, Greenwood Credit Union’s 24-month CD APY currently ranks first.
The above rates are accurate as of 5/1/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
I got "Welcome" email from Greenwood. Looks like they have opened the account.
A very helpful CSR explained that the account number which appeared at that time was THEIR funding account number although the text had read "Your new account number is...". That is, the money to fund my account at Greenwood will go into THEIR funding account number and then to mine. Unfortunately that was not clear at the time.
Recap: if you are going to set up an account at Greenwood CU as an external account at - for example - Ally Bank, you will need to login and use that account number.
In addition to that, Greenwood's disclaimer for using the third party website is totally unacceptable.
That's not exactly a confidence builder for establishing a banking relationship with a company!
One other credit union that I was interested in tried to pull the same dodge of responsibility.
That was for a third-party IRA application process (at least that link didn't throw a McAfee warning).
If you don't trust your third-party vendor, why in the world should I?
1) The link to the available rate and APY info does not work (404 error) from inside the account open process.
2) At the end of the account open process, one must print a document titled “membership application” although I had identified myself as an existing member. The document includes the account number for the CD.
A helpful and friendly CSR confirmed that the document must be returned in a timely manner ** along with a copy of my driver’s license ** just as in the original application.
Since the CD was established with funds on deposit, it earns interest effective immediately. However, the CD will not be visible online until they receive the paperwork and “unlock” the account.