Hudson Valley Federal Credit Union (HVFCU) has ended the week by announcing the addition of “Three great rates, all in one place,” in the form of a 12-, 24-, and 36-month Certificate Account. The minimum opening deposit for any of the Certificate Accounts is $500, with no stated balance cap.
|1.25%||$500||-||Hudson Valley Federal Credit Union||36 Month CD|
|1.00%||$500||-||Hudson Valley Federal Credit Union||24 Month CD|
|0.55%||$500||-||Hudson Valley Federal Credit Union||12 Month CD|
While the rates for the 24- and 36-month Certificate Accounts are indeed “great,” I’m wondering at the logic of lumping a not-so-great 1.00% APY 12-month Certificate Account with the two stellar Certificate Accounts.
All three Certificates are also offered as IRAs (Traditional, Roth and CESA), earning the same APYs with the same funding requirements.
The 36-month Certificate Account is made even more attractive with “two potential APY increases.” The fine print on the promotion page reads,
If on 4/1/18, the Fed Funds rate is 1.50% or higher, HVFCU will automatically initiate an APY rate increase to your certificate account of .25%.
If on 4/1/19, the Fed Funds rate is 2.00% or higher, HVFCU will automatically initiate an additional APY increase to your certificate account of .25%.
If on either date, 4/1/18 or 4/1/19, the Fed Funds rate is not higher than 1.50% or 2.00% respectively, your original rate will not decrease. Your maturity date will remain the same.
All other certificate account terms are excluded from the potential APY increases.
As stated on Hudson Valley FCU’s Certificate Account Penalties page, the Early Withdrawal Penalty (EWP) reads as follows:
If the certificate account term is 12 months: 90 days of accrued dividends;
If the certificate account term is 24 months: 120 days of accrued dividends;
If the certificate account term is 36 months: 180 days of accrued dividends.
Each of the above phrases is followed by “or all accrued dividends since the date of issuance or renewal not to be less than 7 days’ dividends on a new account.”
Headquartered in Poughkeepsie, New York, Hudson Valley Federal Credit Union’s field of membership (FOM) is residency based, with individuals who live, work, worship, volunteer or attend school in the New York counties of Dutchess, Orange, Putnam, and Ulster.
Membership is also extended to any current HVFCU members’ immediate family or household members.
Joining HVFCU and/or opening a Certificate Account can be done online, or at of any of 18 New York branches located in Beacon, Brewster, Carmel, Fishkill, Highland, Hopewell Junction, Hyde Park, Lake Katrine, Middletown, Montgomery, New Windsor, Newburgh, Pleasant Valley, Poughkeepsie (3), Rhinebeck, and Wappingers Falls.
Credit Union Overview
Hudson Valley Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 5.14% (excellent) based on December 31, 2016 data. In the past year, HVFCU has increased its total non-brokered deposits by $147.35 million, an excellent annual growth rate of 4.13%. Please refer to our financial overview of Hudson Valley Federal Credit Union (NCUA Charter # 15802) for more details.
Hudson Valley Federal Credit Union’s history is a classic chronicle of credit unions in America. Established in October 1963 as the IBM Poughkeepsie Employees Federal Credit Union, the Credit Union had 14 member accounts and $172 in assets by the end of the first year. For the first 30 years, the credit union grew, but its membership was limited to IBM employees. In 1994, the name was changed to Hudson Valley Federal Credit Union to better reflect its SEG-based status. A community charter was adopted in 2003, extending membership to residents of four New York State counties. Today, Hudson Valley Federal Credit Union has nearly 275,000 members and assets in excess of $4.4 billion.
How the CDs Compare
When compared to the 365 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and available with the FOM, Hudson Valley Federal Credit Union’s 36-month Certificate APY currently ranks first.
When compared to the 370 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and available with the FOM, Hudson Valley Federal Credit Union’s 24-month Certificate APY currently ranks first.
The above rates are accurate as of 4/7/2017.