For a limited-time, Florida-based GTE Financial is offering Promotional Share Certificates with increased rates and an unlimited add-on feature, “which means you can add money at any time during your term, in as little as $20 increments.” In the past, GTE Financial capped the add-ons at $6k, but during this special promotion there is no limit on the amount of additional money that can be deposited. Although not stated on the landing page, the Promotional Share Certificates require new money to open – $500 minimum for regular Share Certificates and $100k minimum for Jumbo Share Certificates (25 bps higher). Of the eight Promotional Share Certificates currently offered, the 60-month is the most competitive.
The FAQs page explains the Early Withdrawal Penalty.
If you decide to make a withdrawal on the Promotional Share Certificate, you would forfeit up to 90 days earned dividends for 6 and 12 month terms. For longer terms, you would forfeit up to 180 days earned dividends.
According to the fine print on the landing page,
No withdrawals may be made on a GTE Financial Share Certificate in the first 60 days of account opening.
Thanks to DA reader, interested, for posting this deal in the Forum.
How to Open and Fund
The “How to Open and Fund" page explains the process to ensure you receive the promotional rate.
When funding the Share Certificate – Make sure to fund using a non-GTE Debit or Credit Card, or choose the option to supply a different bank and provide the account number, routing number and financial institution name. Remember to not select ‘Transfer from a GTE Federal Credit Union Account’ option, as that will disqualify you from receiving the APY special. The limit to fund a Share Certificate online is $5,000. You can visit our awesome Community Financial Center team at a GTE location to handle funding for deposits greater than $5,000.
What if it’s a large sum that I am looking to move over? If you apply and open a Promotional Share Certificate online, it will walk you through the funding process. However, there are limits to how much you can deposit using the online experience. If you are looking to make a deposit into the Promotional Share Certificate over $5,000, we recommend making a deposit at a GTE Financial location or a Shared Branching location.
A long-term add-on CD is a great hedge against falling rates, or as one DA reader called it, “cheap rate insurance.” Let’s say you open a 60-month Promotional Share Certificate with the minimum $500 deposit. Should a recession occur within the year and rates fall back to near zero, you can continue to make additional deposits and be guaranteed a 3.04% APY for another four years or so. Should rates continue to rise, the $500 investment won’t lose too much ground: the difference between a $500 5-year CD earning 5% and one earning 3% is only about $50 over five years.
Set Sail with Savings
Now through April 30, 2019, you could win a 4-day, 5-night cruise for two.
Open a Share Certificate for any of the below terms and make a $500 deposit at the time of opening to be entered to win a FREE Cruise with GTE's Set Sail promotion. With the opening and funding of a Jumbo Share Certificate of $100K+ you can receive a cruise package automatically.
Headquartered in Tampa, Florida, GTE Financial’s field of membership (FOM) has a way for almost any U.S. citizen or resident alien to join.
Easy membership: Joining GTE Financial’s non-profit educational financial club, CU Savers (one-time $10 membership fee), qualifies for credit union membership.
Residency: Individuals who live, work, worship, or attend school in the following Tampa Zip Codes are eligible to join - 33602, 33603, 33604, 33605, 33606, 33607, 33609, 33610, 33619.
Employment: Employees of a Community Partner (SEG) qualify for membership. Individuals who have an immediate family member who works for a Community Partner are also membership eligible.
Relationship: Immediate family members (spouse, child, parent, sibling, stepparent, stepchild, grandparent, or grandchild) of a current Credit Union member is eligible for membership.
Joining GTE Financial and/or opening a Promotional Share Certificate can be done online, or at any of 24 Florida branches located in Brandon, Clearwater, Crystal River, Hudson, Lakeland (2), Lutz, New Port Richey, Ocala, Plant City, Riverview, Sarasota, Seffner, Seminole, St. Petersburg (2), Tampa (7), and Temple Terrace.
Credit Union Overview
GTE Financial, has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 11.84% (above average), based on December 31, 2018 data. GTE Financial has an average capitalization level (8.60%), the result of holding $2.09 billion in assets with $179.92 million equity. Please refer to our financial overview of GTE Financial (NCUA Charter # 196) for more details.
GTE Financial’s predecessor, Peninsula Telephone Employees Federal Credit Union (PTEFCU) was established in 1901. While GT&E purchased Peninsula Telephone Company in 1935, the PTEFCU name remained in place until 1958, when it was changed to GTE Federal Credit Union. In the 1990s, GTE Financial was the first Florida credit union (and the second in the country) to implement a successful debit card program. The Credit Union rebranded in 2012 and is currently Florida’s seventh largest credit union, with more than 236,000 members and assets in excess of $2 billion.
How the Promotional Jumbo Share Certificate Compares
If a comparison is made to nationally available similar length-of-term CD APYs, GTE Financial’s 60-month Promotional Jumbo Certificate Special APY currently ranks sixth, regardless of minimum deposit requirements. Not bad, but not great.
A comparison to standard CD APYs can’t accurately measure the intrinsic value of unlimited additional deposits, and at the moment, nationally available add-on CDs are rare. Until recently, Mountain America Credit Union (MACU) offered competitive rates on its Term Deposit Plus accounts (MACU’s version of an add-on CD), which are capped at $100k.
The above rates are accurate as of 3/29/2019.
To find the best CD rates, either nationwide or state-specific, please refer to our CD Rates Table page.