Nearly four years ago, Rhode Island-based Greenwood Credit Union (Greenwood) expanded its field of membership (FOM), making people in all states eligible to join. Following the FOM expansion, Greenwood offered very competitive rates on short- and long-term CDs, including a “wow-worthy” 3.75% APY on its 60-month CD toward the end of 2018. As of late, Greenwood’s CD rates have been less than stellar, but that changed this week with the unveiling of two CD Specials: 32-month (1.25% APY) and 58-month (1.50% APY). The minimum opening deposit for either CD Special is $1k, with no stated balance cap.
While all of Greenwood’s standard CDs are available as IRA Certificates (Traditional, Roth, CESA, and SEP), the two CD Specials are not.
As stated in the Truth-in-Savings disclosure (page 13), the Early Withdrawal Penalty (EWP) for all CDs reads as follows:
If your account has an original maturity of more than one year:
The penalty we may impose will equal six months interest on the amount withdrawn subject to penalty.
While a 6-month EWP on a long-term CD is good news, the TIS disclosure also states (emphasis is mine),
You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty.
A 6-month EWP for a 5-year CD is fairly mild, particularly when compared to the EWPs for the other competitive nationally available 5-year CDs. Using DA’s Early Withdrawal Penalty Calculator, you can see what the effective yields would be on a month-by-month basis, demonstrating that closing a 58-month CD Special wouldn’t be a financial disaster. For example,
- 1.32% APY – closed at 4 years
- 1.26% APY – closed at 3 years
- 1.13% APY – closed at 2 years
- 1.01% APY – closed at 18 months
Funding and Maturing Funds Distribution
Funding a CD can be done by ACH, check, or transfer from an existing Greenwood CU savings or checking account. Greenwood CU participates in the CO-OP Shared Branch network, which facilitates the transfer of funds in advance of opening a CD. While funding a CD by credit or debit card is an option, it’s limited to $1k.
Maturing funds can be distributed by check to the address on file, or transferred into a Greenwood CU savings or checking account.
The 32-month CD Special will renew as a 30-month CD and the 58-month CD Special will renew as a 60-month CD. The grace period before any Greenwood CD renews is short - only seven days.
Unlimited beneficiaries can be named with assigned percentages available. Social Security numbers are required for all named beneficiaries.
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, who have 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.
Greenwood Credit Union is committed to doing everything possible to keep our members and employees safe. Beginning on Monday Dec 20th, we will require all members to wear masks when visiting our branch office. We appreciate your understanding and thank you in advance for your cooperation as we do our part to reduce the spread of COVID 19.
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 as if they were in our own branch – FREE of charge!"
Credit Union Overview
Greenwood Credit Union has an overall health rating of "A" on DepositAccounts.com, with a Texas Ratio of 1.87% (excellent), based on September 30, 2021 data. In the past year, Greenwood CU has increased its total non-brokered deposits by $8.77 million, an above average annual growth rate of 1.55% growth rate. Please refer to our financial overview of Greenwood Credit Union (NCUA Charter # 66594) for more details.
Established 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 change to an easy membership requirement institution more than three years ago, offering membership to virtually everyone in the country. Greenwood CU is currently the third largest credit union in Rhode Island, with nearly 81,000 members and assets in excess of $666 million.
How the CD Specials Compare
When compared to the nationally available similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit, Greenwood Credit Union’s 32-month CD Special APY currently ranks first.
When compared to the nationally available similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit, Greenwood Credit Union’s 58-month CD Special APY currently shares the top spot with American Heritage Federal Credit Union’s 60-month Share Certificate.
The above information and rates are accurate as of 2/4/2022.
Looking for the best CD rates, either nationwide or state specific? Please refer to our CD Rates Table page.