Hudson Valley Federal Credit Union (HVFCU) has introduced a Flex 24 Certificate, a 24-month variable rate CD that can be opened with a $500 minimum deposit, with no stated balance cap. Currently earning 3.25% APY, the Flex 24 Certificate’s APY may change quarterly (four times a year).
The APY is determined by adding .75% to the Fed Funds Rate on the last day of each quarter. The dividend rate is subsequently calculated based on the indexed APY.
The Flex 24 Certificate is not totally at the mercy and vagaries of the Fed Funds Rate:
The variable dividend rate and APY may be locked upon request any time during the first year of account opening. The locked dividend rate and APY remains a fixed rate for the duration of the term.
One additional deposit is allowed during the first 12 months following account opening and is limited to “a maximum of the original opening balance.” For example, if your initial deposit is $50k, you can deposit up to another $50k once.
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 24 months: 120 days of accrued dividends, or all accrued dividends since the date of issuance or renewal not to be less than 7 days’ dividends on a new account.
HVFCU has a variety of helpful forms listed on their website, including the Certificate Account Instructions Form, which allows you to “renew, reinvest, and withdraw dividends from a certificate account.”
There’s also a form to add beneficiaries. Social Security numbers are required for all beneficiaries and specific percentages can be designated.
Many thanks to DA reader, zz, for the Forum post about this new product.
Headquartered in Poughkeepsie, New York, Hudson Valley Federal Credit Union’s field of membership (FOM) is residency based, with individuals who live, work, worship, attend school, or volunteer 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.
Opening an HVFCU primary savings account with a $5 minimum deposit is the first step in establishing a new membership. There are no monthly maintenance fees on the primary savings account and a minimum $5 balance is required to keep your membership currrent.
Joining HVFCU and/or opening a Flex 24 Certificate can be done online, or at of any of 19 New York branches located in Beacon, Brewster, Carmel, Fishkill, Highland, Hopewell Junction, Hyde Park, La Grangeville, Lake Katrine, Mahopac, Middletown, Montgomery, New Windsor, Newburgh, Pleasant Valley, Poughkeepsie (2), Rhinebeck, and Wappingers Falls. HVFCU does not participate in the Co-Op Shared Branch program.
Credit Union Overview
Hudson Valley Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 5.89% (excellent) based on December 31, 2018 data. In the past year, HVFCU has increased its total non-brokered deposits by $220.51 million, an excellent annual growth rate of 5.6%. 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 more than 292,000 members and assets in excess of $4.9 billion.
How the Flex 24 Certificate Compares
When compared to 375 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and available within the FOM, Hudson Valley Federal Credit Union’s Flex 24 Certificate APY currently ranks first.
The above rates are accurate as of 4/5/2019.
Looking for the best CD rates, either nationwide or state-specific? Please refer to our CD Rates Table page.