INOVA FCU (Easy Membership) Boosts 5-Year CD Rate
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.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 3.00% | $200 | - | INOVA Federal Credit Union | 5 Year IRA (Traditional, Roth, CESA) | |
| 3.00% | $200 | - | INOVA Federal Credit Union | 5 Year CD |
The 5-year Certificate is also available as an IRA (Traditional, Roth, CESA), earning the same 3.00% APY and with the same funding requirements.
The Early Withdrawal Penalty is now listed on the Share Certificate page and 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.
Thanks to DA reader, SYC, for the Forum post about INOVA’s 5-year Certificate rate hike.
Certificate Specials
In February, INOVA had “limited-time special rates” on its 14-month Certificate (2.30% APY) and 30-month Certificate (2.55% APY). Those rates are still in effect and you can read more about them in my February 10 blog post.
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 and household members of an INOVA member are also eligible for membership.
Complete qualification details are listed on the Membership Eligibility page.
Joining INOVA and/or opening a Certificate 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 "B+" at DepositAccounts.com, with a Texas Ratio of 13.34% (above average) based on December 30, 2017 data. In the past year, INOVA has increased its total non-brokered deposits by $20.16 million, an excellent annual growth rate of 7.52%. 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. INOVA currently has over 32,500 members and assets in excess of $348 million.
How the Certificate Compares
When compared to the 189 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, INOVA Federal Credit Union’s 5-year Certificate APY currently shares fifth place with six other nationally available 5-year CDs.
The above rates are accurate as of 5/28/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
In today's "world economy" and volatile global events, nothing is to be taken for granted!
Is it?
But I can also understand the counterargument that the current economic outlook is such that we expect rates to further increase. Some people might prefer an "insurance policy" against future rate drops and that's ok. A 3% CD will be 0.8% ahead in 14 months compared to a 2.3% CD -- and that 0.8% is a good chunk of a 6 month EWP on a 3% CD, should that become necessary.
Google neil kashkari, who has been writing more eloquently and prolifically about about the specific reasons the Fed should or should not be raising the funds rate, than any other member of the federal reserve..
One big obvious glaring signal is the nearly flat yield curve.
One big obvious truth is the Federal Reserve rarely gets things right over the course of any interest rate cycle.
On the other side, the primary reason the Fed is raising rates is so that it can lower them at the earliest signal of any problem for the global banks.
It may seem crazy interest rates should be so low for so long, but when the top 0.1% own 80% of the world's wealth, inflation is unlikely.
Spot on, my friend. I share your hope for higher rates, but your doubts are very well placed. I'll have a much better idea where rates are headed a bit less than six months hence. At present am limiting my maturities accordingly.
The Fed has a rate that it pays banks on excess reserves: IOER. It is the primary tool the Fed uses to make sure the Fed funds rate is well anchored in its range (remember, Fed funds rate has a 0.25% range target). IOER has been set at the top of the Fed funds range (now 1.75%) for the last couple of years.
But the effective Fed funds rate is moving a little bit too close to the top of its targeted range (now 1.70%). So the Fed discussed in recent days setting the IOER 0.05% below the top of Fed funds rate to bring the rate closer to the midpoint of the target range. If they do this in June, then after the rate hike the Fed funds rate will increase to about 1.90%. So the Fed would effectively hike the rate by only 0.2%, not 0.25%. This has caused significant trading in Fed funds futures in recent days ... but it still prices in a nominal 0.25% rate hike.