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.)
The CD Specials are also offered as IRA CDs (Traditional, Roth, CESA), earning the same APYs with the same deposit requirements.
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.
|0.40%||$200||-||INOVA Federal Credit Union||30 Month Step-Up CD|
|0.35%||$200||-||INOVA Federal Credit Union||2 Year Step-Up CD|
|0.30%||$200||-||INOVA Federal Credit Union||18 Month Step-Up CD|
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.
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.