INOVA Federal Credit Union Ups 14-Month CD To 3.00% APY
To quote DA reader, Bozo, “INOVA seems to love 14-month CDs.” For more than two years, INOVA Federal Credit Union (INOVA) has been offering a variety of 14-month CD Specials, with the latest version earning 3.00% APY. The minimum opening deposit is $200, but a deposit of $50k+ of new money is rewarded with a $100 gift card.
Other competitive CDs currently in INOVA’s product line include,
The 14-month CD is not the only competitive INOVA CD that offers a $100 gift card bonus: a $50k+ deposit of new money in a 5- or 6-year CD qualifies, as does a qualifying deposit in a 30-month CD. A new money deposit of $100k+ in a 5-year CD comes with a $500 gift card. For whatever reason, the equally competitive 20-month CD doesn’t come with a gift card.
Step Up CDs/IRAs
INOVA’s Step Up CDs offer a one-time rate increase any time during the term. All the above mentioned CDs are offered as Step Ups, and surprisingly offer the same APYs. Other than the 60-month, the Step Ups do not come with gift cards.
And to complicate matters further, the CDs and Step Ups are available as IRAs, with APYs 25 bps higher, but no gift cards.
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.
Availability
Headquartered in Elkhart, Indiana, INOVA Federal Credit Union offers membership through affiliation with over 500 member companies. The member companies 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 website.
Two of the member companies, Tru Direction and the Elkhart River Restoration Association (both non-profit organizations), permit anyone in the U.S. to join.
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 CD can be done online, or at any of six Indiana branches located in Elkhart (3), Granger, Michigan City, and Mishawaka. INOVA also has one California branch located in southwest Berkeley.
Credit Union Overview
INOVA Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 8.41% (excellent) based on September 30, 2018 data. In the past year, INOVA has increased its total non-brokered deposits by $18.93 million, an excellent annual growth rate of 6.8%. 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 in Indiana, INOVA currently has more than 33,500 members and assets in excess of $381 million.
How the CDs Compare
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and require a similar deposit, all of the INOVA Federal Credit Union CD APYs cited in this blog post currently rank either first or second.
| Interest Rate | CD Length of Term | Credit Union/Bank |
|---|---|---|
| 3.00% APY | 14-Month CD | INOVA Federal Credit Union |
| 2.90% APY | 1-Year CD | ableBanking |
| 2.89% APY | Online 13-Month CD | MutualOne Bank |
| Interest Rate | CD Length of Term | Credit Union/Bank |
|---|---|---|
| 4.00% APY | 6-Year CD | INOVA Federal Credit Union |
| 3.35% APY | 72-Month CD | Signal Federal Credit Union |
| 3.15% APY | High-Yield 6-Year CD | Marcus by Goldman Sachs |
| Interest Rate | CD Length of Term | Credit Union/Bank |
|---|---|---|
| 3.80% APY | 5-Year CD | INOVA Federal Credit Union |
| 3.60% APY | 60+ Month CD Special | Northpointe Bank |
| 3.51% APY | 5-Year Term Deposit | Mountain America Credit Union |
| Interest Rate | CD Length of Term | Credit Union/Bank |
|---|---|---|
| 3.35% APY | 3-Year Term Deposit | Mountain America Credit Union |
| 3.25% APY | 30-Month CD | INOVA Federal Credit Union |
| 3.30% APY | 3-Year CD | ableBanking |
| Interest Rate | CD Length of Term | Credit Union/Bank |
|---|---|---|
| 3.15% APY | 20-Month CD | INOVA Federal Credit Union |
| 3.04% APY | Online 19-Month CD | MutualOne Bank |
| 3.00% APY | 19-Month CD Special | Hanscom Federal Credit Union |
The above rates are accurate as of 12/24/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
( at 6 yrs )
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."
https://litho.silvercloudinc.com/kb/content/documents/download_as/Fee_Schedule_2-2-2018.pdf?token=ZXlKMGVYQWlPaUpLVjFRaUxDSmhiR2NpT2lKSVV6STFOaUo5LmV5SnpkV0lpT2lJMVlXUTVaVFUwTmpreE9XTmtORFF3TTJVNU5EazBNRGNpTENKcFlYUWlPakUxTkRVMk5qTTROVEVzSW1WNGNDSTZNVFUwTlRZMk16a3hNWDAucm52STZBMVNzcXlnMl81WEdlSlIyTmtmclVvR0RLVURUWWRlQ2JrQXlFZw==&download_inline=true
While the inactivity provision in the fee schedule is not written very clearly, I'm pretty sure that what it means is that if your account goes inactive (i.e., no activity in 12 months) then there's a $5 monthly charge unless you have $1,000 or more in the account. As an aside, I don’t understand why so many financial institutions insist on having silly inactivity requirements on a savings account when you have an active CD account generating monthly interest.
"Then I read a review of INOVA by DA reader, pwj7050, which made me dig a little deeper. According to INOVA’s Fee Schedule, there are two potential monthly fees you need to be aware of:
"Membership Savings/Non Dividend Membership Savings Low Balance Fee - $2.50/Month
"In a Live Chat, I found out that the $2.50 monthly fee applies if the Membership Savings account balance is less than $100.
"Membership Savings Inactive Account - $5.00/ Month After one (1) year and account under $1,000.00, not applicable for members under the age of 18
"That statement is worded poorly. According to the Live Chat, the word 'account' means all monies on deposit with INOVA (Certificates, MMAs, checking, etc), not specifically the Membership Savings Account. In other words, if you open a Certificate with a minimum $1k deposit, the $5 monthly fee does not apply."
These look to me like some very good offers, both rate-wise and in regards to the EWP (180 days) on the longer-term deals.
BTW, why isn't US Senate FCU's 5 year CD (3.63%APY) listed in the comparative 60 month offers? Has that been withdrawn?
I've told myself if another 4% CD came down the pike (as it has now) I'm not going to miss out (as I did on Garden & Connexus), and with a manageable EWP (and the gift card) this might be the best among them (an additional year's commitment notwithstanding). Potentially a smooth transition from 3% maturing PenFed CD's next month as well (assuming Inova's offers last more than a week or two).
What's everyone's judgment about the 5 & 6 year terms here? Any red flags or reasons to hesitate?
Predict now. When or if we will have 5% CDs,
Wacky (but typical)..
It's Crazytown.
@Trump crash: Trump told you the market would crash if the Dems took the house so no big surprise there. He called that like I called interest rates.
It's a do over.
Think back to the last three crashes.
Commonalities:
1) Republican President
2) Strong Economies Prior to Crash
3) Tax Cuts for Billionaires
It is true, the president is not responsible for the economy.
In Trump's case, every single practicing economist forecast a tax cut at the top a bubble would cause serious problems.
Not complicated. Both parties favor the rich, one just favors them even more than the other party.
Deplorable's 4% SIX YEAR CD gone!
Right for one day, almost, LOL!!
If I invest $25,000, I will get a whopping 94 bucks per month in interest. Trying to control my excitement.
I miss Jimmy Carter and his 14% CDs.
Thanks
https://www.trudirection.org/index.php?src=forms&ref=Member%20Registration&submenu=joinNow
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.
Joining Tru Direction is simple. Complete a brief member registration form and make your $5 dues payment with a credit card.
Merry Christmas to all. Time to go wax my leased Ferrari.
When that time would be much better spent at a part time job, or fixing up the house.
Regarding step-up certificates:
I'm generally suspicious since it is so easy for any financial institution to circumvent hiking an interest rate in future simply by selling an "off-standard" CD as rates rise. For example, Inova could in future offer a 59 month CD or a 61 month CD "special" at a much higher rate than their five year. That said, as between the two, it seems to me purchase of the five year is preferable to the six year, the five year being a more popular product industry wide.
That is some deep thinking for a Christmas DUDE!!!
XOXO
should
Good luck with that.
Becoming a Member
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.
Joining Tru Direction is simple. Complete a brief member registration form and make your $5 dues payment with a credit card.
selected, they'll do the enrollment for you. However, she wasn't certain if INOVA paid the fee for you so she recommended adding an additional $5 funding ($20 total) to initial primary savings funding, just to be safe.
Curiously the top of the page still shows 'Rates effective as of December 21, 2018'.
I suppose the disclaimer at page bottom 'Rates are subject to change without notice'
has been applied ...
https://www.inovafederal.org/services-tools/tools/rates.html
I was interested in joining -- called them this morning, filled out online application, they're supposed to call me back. I don't know if I want to pursue this, even f it's a temporary glitch. I'm not interested in purchasing raffle tickets or going on roller coaster rides.
"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. Please contact a Member Service Specialist for our other available rates and terms. We appreciate your business!"
But I wasn't speaking literally.
Comment #42: "You snooze you lose."
I believe the offer began on December 21; I think it first appeared on this site on Dec. 24. It disappeared on Dec. 26. Tortoises do not always win. For me, the question is whether I want to join Inova in the hope that I might be able to jump on any subsequent deals they come up with.
The fault, dear ratechasers, is not in our stars,
But in ourselves
At Comment #39, "SharedBranch" responded: "Their website shows them in the shared branch network. Go to local CU and write a check and the funds should be available immediately, skip mailing a check and waiting."
You waited (as did I). No bait and switch; no reason to blame Inova.
Until the deal is well known, they don't withdraw it. So in a way it does not matter if Ken's site is still the FIRST one to post it.
Did ANYONE here manage to get in on Inova's 4% offer this morning?
SharonView 4%/64 mo.
Now I wish I would have put more in those.
Many of us, effectively, were shut out.
I think there's a difference between "everybody" and one poster -- even more so when others have posted to the contrary. Again, I do suffer from impaired vision, so please let us know what you read that I may have missed.
Thank you.
Assume they need to raise 20 million. If they put that out as a brokered offering it would have been gone in minutes. Inova wants to buy your money and you want to sell. It's a market and, as today's 1000 point gain proved, markets are fickle and volatile.
I see the vast majority of CD offerings going fully electronic in a few years. If for no other reason, it will save time and labor costs. Local requirements for credit union membership are a joke which means national appeal for small offerings such as this 4% rate will only accelerate. First come, first served. Sorry, all the cake is gone!
Don't be too hard on INOVA. When a bank or credit union sets out their "hot deal" CDs, they often have short-term goals and a limited subscription. I've seen this movie before.
Previous 5-year rate isn't the only thing gone;; gift-cards are all done with too, so no more bonus on your $50K+ deposit.
Also, did anyone know/mention that there's a $10 application fee in addition to joining one of the those organizations? 'Stepping Up' is nice, but their 1-year isn't even the highest rate out there. No thank you, INOVA....
An invaluable site here, - but that was tardy reportage (whereas days earlier it would have been capstone to another great year).
If you know another site that DID advertise this deal earlier, then you have something you can complain about (though, even then, I don't believe Ken owes you anything)
As I see it, this questionably competent FI decided to make some end-of-the-year rate offers (initiated on the 21rst), but then got intimidated by subsequent stock market declines into thinking the sky might be falling and they better back out.
My own suspicion is that Ken knew about the offer very shortly after it was initiated (on the 21rst) but then took a few days to confirm details and write the copy for publication, - in no wise imagining it would be withdrawn quite so immediately. But wouldn't a small banner headline advising us of the deal (for our own investigation) have been possible in that case, - before the full write-up appeared? I think so.
Initials KT.
But considering the extra money they are offering you, the present incident is not sufficient cause to turn away if their offering is otherwise attractive to you. This opinion based on my own experience with them. They are not bad people. They just seriously messed up.
What is going on?
Trying now to put this debacle in the rearview mirror.
Sorry for being a member so long, Inova, and thanks for making that a distinct disqualification for receiving even the same courtesy given those who haven't supported you with their business for almost a decade as I have.
I think it is interesting and instructive to look at how Sun East handled their market leading 27 month CD vs. the INOVA fiasco of the last few days. The Sun East offer was first written up by SYC on October 31. We all quickly learned this was for a limited geographic area (which enabled Sun East to throttle demand). Then, on Dec 14, QED notified DA nation that the geographic limitation had been removed. Ken wrote this up on Dec 15. This nationwide offer lasted nearly 2 full weeks through Dec 26. Compare this to INOVA who introduced their offers just prior to a weekend (Dec 22/23), half day holiday (Dec 24th), full day holiday (Dec 25th), and then terminated midday on Dec 26th. INOVA's approach seems very, very odd and, at best, represents little to no forethought. At worst, it seems to have been a PR move to generate industry buzz and create a bait/switch opportunity as outlined by the alternate offers received by some INOVA applicants yesterday.
You suck, Inova.