INOVA Federal Credit Union Adds Three Rate-Leading CD Specials
INOVA Federal Credit Union (INOVA) has added three limited-time Certificate Specials: 17-month (5.50% APY), 14-month (5.10% APY), and 11-month (5.00% APY). Like all of INOVA’s Certificates, the three Certificate Specials can be opened with a $200 minimum deposit; there is no stated balance cap.
The Certificate Specials are also available as IRA Certificate Specials (Traditional, Roth, CESA), earning the same APYs with the same deposit requirements.
INOVA has been offering limited-time Certificate Specials for the past few years. While no end-date has been specified, previous Certificate Specials have been available for at least a month.
As stated on the Share Certificate landing page, the Early Withdrawal Penalty reads as follows:
The penalty schedule is as follows:
- Terms of 90 days to 1 year 90 days’ dividends
- Terms of longer than 1 year 180 days’ dividends
The penalty imposed will equal the lesser of all dividends earned or terms above. However, the penalty will not be less than 7 days’ dividends.
Funding and Maturing Funds
There is no Truth-in-Savings disclosure listed on INOVA’s website or attached to the online application; according to CSR, the TIS is provided when a CD is opened, which doesn’t help when doing due diligence. The following information was provided by CSR.
- The easiest way to fund a Certificate is through a transfer of funds from an INOVA Membership Savings account. INOVA participates in the CO-OP Shared Branch network, facilitating the transfer of funds.
- Maturing funds will be distributed by a cashier’s check to the address on file or transferred to a Membership Savings account.
- Earned and credited dividends can be paid out by check or transferred to a Membership Savings account.
INOVA’s policy on maturing Certificates differs from most financial institutions. The following is from the short FAQs section at the bottom of the Certificates page.
For accounts that have been set up to automatically renew for another term, you will not have a grace period after maturity to withdraw funds without being charged an early withdrawal penalty. To avoid a withdrawal penalty, all withdrawals must be made on the maturity date.
If you opt out of automatic term renewal, the account balance will be transferred to an existing INOVA savings account on the maturity date.
Availability
Headquartered in Elkhart, Indiana, INOVA Federal Credit Union offers membership through affiliation with more than 1,600 member companies. The member companies range from large national companies (Bayer, Papa’s Pizza, Inc.) and colleges (University of Notre Dame), to local businesses and organizations, including churches and public schools. A complete list of the member companies can be found on the INOVA Company Eligibility page.
Anyone who lives within a 50-mile radius of any branch is eligible for INOVA membership by joining Tru Direction (one-time $5 membership fee). Long-time DA readers may remember when INOVA offered a nationwide easy membership requirement (EMR). INOVA instituted the 50-mile radius limitation on the EMR more than a year ago.
Tru Direction is a 501 (c)(3) foundation that promotes financial fitness, including the sponsorship of “Banzai,” an on-line financial literacy program available at no cost to schools. INOVA's online membership application facilitates joining Tru Direction.
I elect to join Tru Direction Financial Literacy Program.
Immediate family members (spouse, child, sibling, parent, grandparent, and grandchild, including step- and adoptive relationships) and household members of a current INOVA member are also eligible for membership.
Complete qualification details are listed on the Membership Eligibility page.
Account Opening
Joining INOVA and/or opening any kind of account can be done online, or at the Berkeley, California branch or at any of six Indiana branches located in Elkhart (3), Granger, Michigan City, and Mishawaka.
You will be asked to make your initial minimum membership share deposit of $5.00 and pay the $10.00 Membership Fee. The $5.00 share must remain on deposit to maintain your member/owner status and cannot be used for overdraft protection.
INOVA participates in the CO-OP Shared Branch and ATM networks, providing members with access to,
over 5,000 branch locations nationwide through the Credit Union Shared Service
Center System and over 30,000 ATMs across the nation through the CO-OP Network.
Unlimited beneficiaries can be designated with equal shares. Social Security numbers are required for all named beneficiaries.
Credit Union Overview
INOVA Federal Credit Union has an overall health grade of "B+ at DepositAccounts.com, with a Texas Ratio of 5.12% (excellent) based on September 30, 2022 data. In the past year, INOVA has increased its total non-brokered deposits by $12.46 million, an above average annual growth rate of 2.82%. Please refer to our financial overview of INOVA Federal Credit Union (NCUA Charter # 4968) for more details.
INOVA Federal Credit Union was established in 1942 to serve the employees of Miles Laboratories, an Elkhart, Indiana based pharmaceutical company. When Miles Laboratories was purchased by Bayer AG in 1979, the Credit Union’s scope and field of membership began to expand. As the 20th largest credit union headquartered in Indiana, INOVA currently has more than 46,000 members and assets in excess of $629 million.
How the 17-Month Certificate Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationally and have minimum deposit requirements of $10k or less, no banks or credit unions have higher rates than currently offered on the INOVA 17-Month Certificate. The following table compares the 17-month Certificate to the two highest-rate CDs from two other credit unions and to the two highest-rate CDs from banks.
How the 14-Month Certificate Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationally and have minimum deposit requirements of $10k or less, only one bank has a higher rate than currently offered on the INOVA 14-Month Certificate. The following table compares the 14-month Certificate to the two highest-rate CDs from two other credit unions and to the two highest-rate CDs from banks.
The above information and rates are accurate as of 12/16/2022.
To search for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.
I agree with the notion that if enough people complained there would probably be a change in the industry. But I don't think that's going to happen because most people don't know it's even happening.
I've expressed a number of times here how unethical I think it is to (silently) damage a depositor's credit as your first act of welcoming them as a member when they are not applying for any form of credit and in fact they are extending credit to the financial institution by lending them their money. I find it a despicable practice. But I don't see it changing.
And I have to say that in recent years, the best deals I have had at credit unions required a hard pull and I decided to hold my nose and pay that price for the deal. The best deal I ever got was with a large credit union that told me there was no hard pull, but then there was. I was infuriated, but in retrospect it turned out to be such a good CD that the wound healed.
I've never borrowed a penny in my life, and I can't think of anything that I need an exemplary credit score for anymore at this point. It was 820 something last time I checked but probably a little lower now since I've done a deal with a hard pull since then. But even though I don't need to have any kind of special credit score, it's a matter of pride and I don't like it to be dinged, especially in this way.
You have to factor it into the equation to decide if it's worth it but I certainly agree that it's a despicable practice. I'm not a fan of even more regulation, but since the financial sector is already probably the most highly regulated sector in the country it wouldn't make much difference if they threw in a regulation prohibiting a hard pull without a credit application.
What makes this much more difficult is when FI's ding you with a hard pull for opening a savings/MMA/CD and it stays on your score for 2 years before dropping off. To counter this I need to have very large credit lines to keep my overall credit utilization ratio as low as possible. Then I need to space out my hard pulls as well. You never know when a new credit card or CD deal may pop up and I don't want to get turned down for being just a few measly points too low to qualify. It's quite the balancing act.
I guess I'm going to give them 7 days interest and switch into the new 17 month for 5.5% it's a no brainer.
The good news is that both these credit unions only take earned dividends as EWP. I've had to bail out of earlier CD's at both of them so I know this first hand. If you close the CD soon after you open it, the EWP is quite reasonable.
I may be OK with the 5 year CD. But maybe not. You have to hedge your bets.
I never said rates weren't going higher, I said I don't know because I'm not an expert like you....I let the markets tell me not some guy on a blog that missed his prediction so far by almost 5 years now.
3% 5 year CDs, good imagination kind of like someone we know who likes to make things up to make himself look smart, did you get some of his new neat trading cards?
A guy who supposedly lost an election....I am rolling on the floor laughing my trump off.
Btw, I've been trading a little tbt, in and out fast, but if you're sure rates are going up tbt would be something you should look into...I won't tell you to buy it but if I was as sure as you are about rates I wouldn't be trading it so short term I would be buying it and holding it...but I would have to be 100% sure like you are and I'm not.
Just as a warning ... tbt can be a dangerous little etf if rates go against you.
ProShares UltraShort 20+ Year Treasury
In fact, when GTE tried to terminate its 5-year, 3%, add-on certificate, there was a near RIOT on DA.
Ru sure is only 7 days penalty? I thought Feds rule was as least 7 days?
The answer is almost certainly yes.
It's a" 5 Year peace of mind" transaction.
There are unfortunately many FI's (including credit unions) that will charge you the full EWP of say, 6 months, even if you've only earned interest for 1 month. I now pay attention to stuff like this. Before this year, I don't think I ever closed a CD early.
I have gotten nailed like this on a couple of CD's I bought way too early this year, like back in May. But rates have increased enough to recover the EWP within the first year.
that's great. noticed on the site that EWP are they lesser of all interest earned, whatever EWP is. And u r so right to check out the conditions very carefully. Twice i had to pay the whole EWP which cost me principle, but luckily the new APY i was getting still made it worth while. Also, PenFed will not go in to principle. The old adage of buyer beware is right on in these dealings!
nobody cares that you bought a leveraged mortgage reit, that went bankrupt. what i care about, is that you falsely claimed they made a distribution, post-bankruptcy. you made that claim earlier this year. perhaps you believed it yourself. still factually wrong. it is also problematic that you spent so much of 2019 suggesting it to other people, who possibly - though perhaps unlikely ? - understood it less,than you.
nobody cares that you, and everyone else on here, repeatedly "forecasts" interest rates. it is when people advise others, and sometimes "guarantee" the future, that it is a problem.
and today you are pretending to know that i bought 3% cds. you are making that up. that is called a lie. i can't remember ever talking about a cd i have owned, but maybe i have. I do know i don't own any 3% cds. except for that one, gte add-on. that everyone on DA nearly rioted over, when GTE tried to terminate it.
be honest. stop making things up. thank you.
Was it to open new CD account or Purchase Member Share to Establish CU Membership?
While nowhere near 50 miles, I was approved few days ago by joining Tru Direction(one-time $5 membership fee).
It does Experian hard pull and ChexSystems inquiry.
I intend to dispute Experian inquiry (though it is not easy) since the application was only for membership/Share Savings - the relationship with no Credit aspect whatsoever.
The inquiry is labeled "Check/Svgs Acct" that may imply some Overdraft Protection type of Credit.
Although I'm the member of "a lot of credit unions ,small to medium-sized", that is the Only Inquiry on my record with Experian related to Deposit Accounts
I cant comment on others' experiences with other FIs.
to give myself a piece of mind i had my ChexSystems Consumer file frozen before I applied.
INOVA contacted me next day complaining that it has a problem processing my application.
I've lifted a freeze while representative was on the phone with me and after CSR consulted with the underwriter the membership was approved. It's sounded that they are very eager to fulfill their CD Specials quota.
This is limited experience of one individual dealing with specific issue.
Funds need to be transferred to INOVA before I fulfill my goal of opening CD Account. I am not that eager because if it is delayed there will be another CD Special somewhere else.
PS. The Lendingtree Bowl was a success!
what is "impact credit"?
Credit Score?
There are several, each is using slightly different proprietary methodology.
FI's assessed Debtor Profile and quoted Cost of the Credit?
Each FI is using slightly different proprietary underwriting standards.
ChexSystems existence is unrelated to "soft pull" and "impact credit"
Otherwise, for their own internal purpose they can only do soft pull, which nobody should worry about.
Hard inquiry stays on Experian record for 3 years, during last 3 years I had about a dozen of CU memberships established.
The only inquiries are listed on Experian record are from PenFed and PSECU because I have Credit Cards with them.
Again... I can only report limited experience of one individual dealing with specific issues.
However, when experience is replicated through dozens of occurrences it is rather trend than luck.
I'm only familiar with Equimail and WesternUnion!
Go for the source, check your credit report, every entry there has an expiration date.
For the purpose of this topic it doesn't really mater 2 or 3, as it doesn't matter for my personal purposes, I care less about Credit Reports
After all, CU membership is a membership, and member share and certificate is nothing more then the purchase of the membership and deposit certificate.
according to CSR one who applied before 12/20/24 still entitled to the that.
only those who applied for 17 months special and select funding by check are entitled directly.
those who applied for membership in hope to transfer funds and open CD then would have to make the case that the membership application was in leu of 17 months special. I cant guarantee the outcome.
Inova Special, SkyOne Special were closed earlier then initially announced.
It is a trend rooted in the excess of liquidity, it will continue for as long as treasury Short/Long term Rates inversion persists.
In a meantime forum is full of predictions going back to two years ago that rates will go Up and Up and upupup.
In this environment the best return achieved by those who nimble enough to respond to short term deals and have the endurance to follow up instantly when short terms are expired.
it is the Market of Cash where the best money is made when the rates are volatile and moving fast, same as Equity Market.
I imagine and welcome the avalanche of comments
Hello, Please post this comment on the Numerica CU page comments for readers, as well. Thank you so much!