Hughes Federal Credit Union Has Rate Leading 36-Month Jumbo CD
Although the rates offered on Hughes Federal Credit Union’s (Hughes FCU) 36-month CDs have dropped substantially since their all-time high APYs in June, the CDs have been positioned at or near the top of the nationally available 3-year CD category for the entire time. Hughes FCU rates typically change at the beginning of the month, so these rates should be in effect for the next three weeks or so.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 1.77% | $99k | - | Hughes Federal Credit Union | 36 Month Jumbo CD | |
| 1.66% | $50k | - | Hughes Federal Credit Union | 36 Month Mini-Jumbo CD | |
| 1.56% | $1k | - | Hughes Federal Credit Union | 36 Month CD |
The 36-month CDs are also available as IRAs (Traditional, Roth, SEP), but offering higher rates.
24-month and 29-month CDs
Both the 24-month and 29-month CDs offer competitive rates, with the 29-month Jumbo CD being at the very top of this week’s CD Rates Summary 2-year CD category. Like the 36-month CDs, the 24- and 29-month have tiered rates based on deposit levels of $99k, $50k, and $1k.
While the 24-month is offered as an IRA (with slightly higher rates), the 29-month is not available as an IRA.
As stated in Hughes FCU’s Truth-in-Savings document, the Early Withdrawal Penalty reads as follows:
The penalty of early redemption shall equal the greater of a loss of $50.00 or 180 days
dividends on a term greater than 367 days. Partial withdrawals are not allowed.
Funding a CD can be done by ACH, wire transfer, or by check. Maturing funds will be distributed by cashier’s check or transferred into a Main Share Savings Account. There is a ten day grace period before a CD automatically renews.
Beneficiary(es) can be named and Social Security numbers are required. If multiple beneficiaries are named, equal shares will be assigned.
Availability
Headquartered in Tucson, Arizona, Hughes Federal Credit Union’s field of membership (FOM) is varied, with a way for almost anyone to qualify.
Easy Membership Requirement: Making a $10 donation to any of four Tucson area non-profits (Friends of the Oro Valley Public Library, Friends of the Pima County Public Library, Friends of Green Valley Library, or Friends of Kirk-Bear Canyon Library) qualifies for membership eligibility, regardless of where you live.
Residency: Individuals who live, work, worship, or attend school in Tucson are eligible.
Employment: Individuals employed by Hughes FCU’s 800+ SEGs qualify for membership.
Relationship: Immediate family members of current Hughes FCU members are also eligible to join.
Joining Hughes Federal Credit Union and/or opening a CD can be done online. Until further notice, all eight Arizona branch lobbies are closed, with “teller and member services provided through drive-thru, ATMs, and appointments only.”
A Main Share Savings Account establishes your membership
at Hughes. An initial deposit of $50.00 is required upon opening.
Hughes FCU participates in CO-OP Shared Branch network, giving its members access to more than 5,000 shared branches across the country.
Credit Union Overview
Hughes Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.15% (excellent) based on December 31, 2019 data. In the past year, Hughes FCU has increased its total non-brokered deposits by $238.66 million, an excellent annual growth rate of 23.5%. Please refer to our financial overview of Hughes Federal Credit Union (NCUA Charter # 7531) for more details.
Hughes Federal Credit Union was established in 1951 by employees of the Hughes Missile Systems (now Raytheon Missile Systems). In 1992, Hughes FCU merged with Arizona Transportation Credit Union, which served the employees of the Union Pacific Railroad and more than 400 SEGs in Phoenix and Tuscon. The FOM was expanded in 2001 to include the residents of Tucson. Hughes FCU is currently Arizona’s fifth largest credit union, with nearly 132,000 members and assets in excess of $1.3 billion.
How the CDs Compare
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are nationally available, Hughes Federal Credit Union’s 36-month CD, Mini-Jumbo CD, and Jumbo CD APYs currently rank in the top four, regardless of minimum deposit requirements.
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are nationally available, Hughes Federal Credit Union’s 29-month CD, Mini-Jumbo CD, and Jumbo CD APYs currently rank in the top three, regardless of minimum deposit requirements.
The above rates are accurate as of 4/9/2020.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
So basically you are signing a blank check if you try this. You don't know what rate you will get and if you commit to a certificate, you are locked in at an unknown rate. Yes, you could have the money sent to an IRA savings account instead of directly to the certificate so you are not locked into a rate you don't like. But then you have to go through the whole process again to transfer the funds out? What about a life?!
It's not just this CU, it's the entire direct transfer IRA process that is flawed. In this day and age, why does it take a month to transfer your IRA account to a new FI? Should take the click of a button after you fill out the paperwork.
In addition Hughes does a hard pull. So you could get a hard pull, then not get the rate you want. Too risky.
At least with some CUs you don't have to wait for them to receive back the papers. That saves some time. And many of them don't do a hard pull. But the process is still rediculous.
I am thinking about boycotting any FI that does a hard inquiry when you open an account (meaning that will be a deal killer for me). Let me get this straight. I am lending you MY money and you are doing a hard inquiry on me that dings my credit score for no reason when I am not even applying for credit? That's how you welcome a new customer, by hurthing their credit score? I should be doing the hard inquiry on YOU, your the one who is borrowing money from ME.
By the way the CSR I spoke to at Hughes was excellent. Well above average. I was disappointed in their policies, but it wasn't his fault.
Pressure needs to be applied to Congress to fix these obsolete and unethical processes and practices. There is no need for it.