INOVA Federal Credit Union Substantially Boosts CD Rates

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Update: Readers are being told by INOVA phone representatives that to be eligible to join, you must live within 50 miles from one of their branches. I've been covering INOVA for more than 10 years, and this is the first time I've heard about this requirement. We'll research this for additional details.

Deal Summary: CDs and Step-Up CDs – 18-month (1.05% APY), 2-year (1.15% APY), 30-month (1.25% APY), $200 minimum deposit.

Availability: UPDATE 4/29/2021 – Easy membership requirement for individuals living within a 50-mile radius of a branch.

It's been more than a year since I last wrote about INOVA Federal Credit Union (INOVA), simply because there weren't any noteworthy products offered during most of 2020. I was pleasantly surprised to see INOVA become relevant once again, having substantially raised the rates on three of its CDs this week. With rate increases of 75, 80, and 85 bps respectively, the 18-month (1.05% APY), 2-year (1.15% APY), and 30-month (1.25% APY) CDs are currently rate leaders. The minimum opening deposit is only $200, with no stated balance cap. (FYI – when I wrote about INOVA's 14-month CD Special in early February 2020, the 2.55% APY lasted about ten days.)

APYMINMAXINSTITUTIONPRODUCTDETAILS
0.40%$200-INOVA Federal Credit Union30 Month CD
0.40%$200-INOVA Federal Credit Union30 Month IRA (Traditional, Roth, CESA)
0.35%$200-INOVA Federal Credit Union2 Year IRA (Traditional, Roth, CESA)
0.35%$200-INOVA Federal Credit Union2 Year CD
0.30%$200-INOVA Federal Credit Union18 Month IRA (Traditional, Roth, CESA)
0.30%$200-INOVA Federal Credit Union18 Month CD
Rates as of August 3, 2021.

The CD Specials are also offered as IRA CDs (Traditional, Roth, CESA), earning the same APYs with the same deposit requirements.

Step-Up CDs

All three CDs are available as Step-Up CDs, which permit one rate change through the term.

This flexible savings program allows you to change your certificate rate one time
during the term. If the rates go up — you're covered! You can "step up" to the higher rate.

The Step-Up CDs earn the same APYs and can be opened with the same $200 minimum deposit.

APYMINMAXINSTITUTIONPRODUCTDETAILS
0.40%$200-INOVA Federal Credit Union30 Month Step-Up CD
0.35%$200-INOVA Federal Credit Union2 Year Step-Up CD
0.30%$200-INOVA Federal Credit Union18 Month Step-Up CD
Rates as of August 3, 2021.

As stated on the Share Certificate landing page, the Early Withdrawal Penalty reads as follows:

The penalty schedule is as follows: 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.

INOVA’s policy on maturing CDs is different than most financial institutions: there’s no grace period provided.

For accounts that 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.

For accounts that do not automatically renew for another term, the account balance will be transferred to another account of yours upon maturity. You will not be paid dividends on the account after the maturity date.

Availability

Headquartered in Elkhart, Indiana, INOVA Federal Credit Union offers membership through affiliation with more than 1,500 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 INOVA’s Company Eligibility page.

UPDATE 4/29/2021 – One of the member companies, Tru Direction, allows anyone in the U.S. anyone who lives within a 50-mile radius of a branch to join (one-time $5 membership fee). 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.

Joining INOVA and/or opening any kind of account can be done online, or at any of six Indiana branches located in Elkhart (3), Granger, Michigan City, and Mishawaka. While all Indiana branch lobbies are open to walk-in traffic, the Berkeley, California branch is still temporarily closed.

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/ATM Networks, giving members the convenience,

of 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.

Credit Union Overview

INOVA Federal Credit Union has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 18.87% (above average) based on December 31, 2020 data. In the past year, INOVA has increased its total non-brokered deposits by $46.18 million, an excellent annual growth rate of 12.84%. 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 41,500 members and assets in excess of $508 million.

How the CDs Compare

When compared to 150 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and require a similar opening deposit, INOVA Federal Credit Union 18-month CD APY currently ranks first.

When compared to 197 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and require a similar opening deposit, INOVA Federal Credit Union 2-year CD APY currently ranks first.

When compared to 197 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and require a similar opening deposit, INOVA Federal Credit Union 30-month CD APY currently shares the top spot with Abound Credit Union's 37-month CD Special APY.

The above information and rates are accurate as of 4/28/2020.

To search for the best CD rates, either nationwide or state-specific, please refer to our CD Rates Table page.

Related Pages: South Bend CD rates, Chicago CD rates, San Francisco Bay CD rates, 1-year CD rates, 5-year CD rates, nationwide deals

Comments
Jack11
  |     |   Comment #1
I think you have conflicting info regarding the one time fee for joining via TruDirection

One place you say $5 and another $10

I think its actually $5--- from the TD website-

Tru Direction, Inc. is a not-for-profit organization dedicated to improving financial literacy for people at any life stage. The general public is invited to join this association and enjoy its benefits for a low one-time dues payment of $5.'

Also it does appear they do a hard pull-

Why do you pull credit for new account application?
Under the requirements of the Patriot Act, all financial institutions must do an identity check on a new customer. They use "customer identification programs" (CIP) that compare your name, address, date of birth, and other facts to the information contained on your credit report.
The CIP regulations require institutions to implement reasonable procedures for:
Verifying the identity of any person seeking to open an account, to the extent reasonable and practicable
Maintaining records of the information used to verify the person’s identity, including name, address, and other identifying information.
Financial institutions also review ChexSystems and sometimes credit report data during the process of determining if a customer qualifies to open a new account. Under FCRA regulations, the bank has to have a permissible purpose such as "intending to use the information in connection with a credit transaction involving the consumer" in order to pull a credit report and must obtain the consumer’s consent first. A hard inquiry like this could cause a small credit score ding
alan1
  |     |   Comment #3
I don't think there's necessarily any "conflicting info" in the article.

According to the article, one can become eligible for credit membership by joining Tru Direction ($5).

According to the article, it seems that an additional $15 must be paid to the credit union($5 to open the share account, and a $10 credit union membership fee). At least, that's how it looks to me.
Jack11
  |     |   Comment #4
Here are what I thought were conflicting-----

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.
----------------
And -

One of the member companies, Tru Direction, allows anyone in the U.S. to join (one-time $5 membership fee). 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.
gregk
  |     |   Comment #2
Has Inova "become relevant again"?

I don't think so, Ken.

Will anyone here be funding Certificates at these rates?
MidAtlantic
  |     |   Comment #5
Having the highest rates for three lengths of CD is highly relevant to me and probably many others.
Thanks Ken!
gregk
  |     |   Comment #6
To my mind "relevant" would mean you'll be funding a CD with Inova.

Has anyone here done so?
#7 - This comment has been removed for violating our comment policy.
INOVA Federal Credit Union's 14-Month CD Special APY Is On Top
UPDATE 2/11/20: The 14-month CD Special rate fell to 2.40% APY.

Deal Summary: 14-month CD Special, 2.55% APY, $200 minimum deposit.

Availability: Easy membership requirement

In a January 24 Forum post about INOVA Federal Credit Union’s (INOVA) recent rate increases on its 18-month CD/IRA, DA reader, Bozo, stated:

In what may be a fortuitous coincidence or an example of Bozo’s prescient skills, Indiana-based INOVA has added 40 bps to its 14-month CD Special, giving it a rate-leader 2.55% APY. Like all of INOVA’s CDs, the 14-month can be opening...

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INOVA Federal Credit Union Adds 100 Basis Points To 18-Month IRA/CD
Deal Summary: 18-month IRA (2.50% APY), 18-month CD (2.25% APY), $200 minimum deposit.

Availability: Easy membership requirement

In the past five years, Indiana-based INOVA Federal Credit Union (INOVA) had been a prolific producer of great rates and hot deals, but in the recent past, INOVA’s rates have been somewhat lacking. As of this week, that changed with substantially increased rates (100 bps added) for the 18-month IRA (2.50% APY) and 18-month CD (2.25% APY). The minimum opening deposit for both is only $200.

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INOVA Federal Credit Union Has 14-Month IRA, 2.95% APY
Deal Summary: 14-month IRA, 2.95% APY, $200 minimum deposit

Availability: Easy membership requirement

As I reviewed my previous INOVA Federal Credit Union (INOVA) blog posts, it was obvious that INOVA has been partial to 14-month CDs and IRAs, with six separate offerings in the past three years. While INOVA recently lowered the rates on the majority of its CDs/IRAs, the 14-month IRA is still quite competitive with its 2.95% APY. The 14-month CD doesn’t fare as well – the APY is 2.70% APY. The IRA and...

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INOVA Federal Credit Union Ups 14-Month CD To 3.00% APY
UPDATE 12/26/2018: As of this morning, the 5-year CD (3.85% APY) and 6-year CD (4.00% APY) are no longer being offered. According to INOVA's website, "IMPORTANT INFORMATION: We have fulfilled our obligation on all of our 5 and 6-year Certificates, Step Up Certificates, IRA Certificates, and IRA Step Up Certificates."

Deal Summary: 14-month CD, 3.00% APY, $200 minimum deposit, $100 gift card with new money deposit of $50k+.

Availability: Easy membership requirement

To quote DA reader, Bozo, “INOVA seems to love 14-month CDs.” For more...

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INOVA FCU (Easy Membership) Boosts 5-Year CD Rate
Deal Summary: 5-year Certificate, 3.00% APY, $200 minimum deposit

Availability: Easy Membership Requirement

INOVA Federal Credit Union (INOVA) is the latest financial institution to jump on the 3 For 5 Club bandwagon, with a 75 bps rate hike on its 5-year Certificate (3.00% APY). (With membership at nearly 100 banks and credit unions, the 3 For 5 Club has lost some of its cachet.) The minimum opening deposit is only $200 and there is no stated balance cap.

The 5-year Certificate is also available...

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