Kentucky Telco CU Adds Very Competitive CD Specials


Availability: 25 Kentucky counties; more than 700 SEGs in Kentucky and Southern Indiana.

It’s been quite a while since we’ve seen, what we at DA call, “wow-worthy” rates. That changed today with the introduction of Kentucky Telco Credit Union’s (Kentucky Telco) new 15-, 27-, and 45-month Certificate Specials.

Each term length has two rate tiers, which are based on deposit amounts. The lower APYs require a minimum $10k of new money, but the fine print states,

Deposits to this account cannot be made with transfers from other Kentucky Telco accounts,
maturing certificates, or funds withdrawn from Kentucky Telco accounts in the last 30 days,
unless an additional $10,000 in is funds transferred from another financial institution are included.

The higher APYs (a bonus of 0.15%) are a limited-time offer on Certificate Specials opened by June 18, 2016. These require a minimum deposit of $50k, and a minimum of $25k must be new money.

As stated in the Truth In Savings Disclosure, the Early Withdrawal Penalty reads as follows:

Term of >1 year up to 3 years -- greater of $50 or 180 days dividend on the amount withdrawn not to exceed total dividends accrued and/or paid.
Term of >3 years up to 5 years -- greater of $50 or 365 days dividend on the amount withdrawn not to exceed total dividends accrued and/or paid.

Thanks to DA reader, Carpline, for his Forum post about these Certificate Specials.


Headquartered in Louisville, Kentucky Telco Credit Union’s field of membership is primarily residency based, with individuals who work, live, worship, volunteer, or attend school in the following Kentucky counties eligible to join:

Anderson, Bourbon, Boyle, Bullitt, Clark, Daviess, Estill, Fayette, Franklin, Garrard, Harrison, Henry, Jefferson, Jessamine, Lincoln, Madison, Mercer, Nicholas, Oldham, Powell, Scott, Shelby, Spencer, Trimble, and Woodford.

Kentucky Telco also offers membership to employees of over 700 Select Employee Groups.

Joining Kentucky Telco and/or opening a Certificate Special can be done at any of ten Kentucky branches located in Lexington, Louisville (8), and Owensboro. The Credit Union’s Enrollment Form is available as a PDF download to facilitate the application process.

Credit Union Overview

Kentucky Telco Credit Union (NCUA Charter # 68666) has an overall health grade of "A+" at, with a Texas Ratio of 2.98% (excellent) based on December 31, 2015 data. Kentucky Telco has an excellent capitalization level of 11.95%, a result of holding $351.19 million in assets with $41.98 million in equity. Please refer to our financial overview of Kentucky Telco Credit Union for more details.

Established in 1934, Kentucky Telco Credit Union was created for the benefit of Southern Bell Telephone and Telegraph employees in Louisville. In the 1990s, changes in the federal field of membership regulations allowed Kentucky Telco to extend membership to hundreds of SEGs. Less than six months ago, Kentucky Telco’s members voted to convert to a state charter, further expanding the field of membership. Today, Kentucky Telco is the 7th largest credit union in the state, with more than 42,800 members and assets in excess of $351 million.

How the Certificate Specials Compare

When compared to the similar length-of-term CDs tracked by that are available to residents of Kentucky, Kentucky Telco Credit Union’s Certificate Specials have very little, if any, competition, regardless of minimum deposit.

The above rates are accurate as of 5/27/2016.

To look for the best CD rates, both nationwide and in your state, please refer to our CD rates table, or our new Rates Map page.

paoli2   |     |   Comment #1
I just can't get excited with any CD that has 365days EWP.  It would have to be at least 3% for me to risk that.  Too bad since we would fit in under the membership rules.  I'll keep a watch on what they give if they have any 6 month EWPs in the future which fit my criteria.  Thanks for bringing this to our attention.
Anonymous   |     |   Comment #2
See if they permit IRAs.  If so, confirm that they allow Required Distribution with no fee as well as QCDs.
Anonymous   |     |   Comment #3
But remember that even if they do allow IRAs, both these methods of removing funds before the CD term date require the CD holder to be over 70.5 years old.
Anonymous   |     |   Comment #4
Right on!  Slam dunk for "most" of us
gregk (anonymous)   |     |   Comment #5
Is even 2.66% APY (for almost 4 years) truly "wow-worthy"?  Not to my mind, honestly.  It's a big "if", of course, but if the Fed hikes the Federal Funds rate twice more this year (say in June or September and then again in December after the election, - which seems not crazy to imagine, though some here will think so) then surely 3% CD's will follow.  Short of that, I'm likely to stand pat for now and see what unfolds.  The fidgety may be lured in by these small tweaks we're now seeing from resourceful FI's.  My own advice is to wait, - the odds of a more substantial (if still modest) thaw could be shortening.
Anonymous   |     |   Comment #6
Sooooooooooo, factor in 0% now for x months to (perhaps) get "surely 3%" that may follow...and that is an effective rate of...?  With 2.75 (guaranteed now, not "perhaps") at several CUs, why "really" sit on the sidelines for no meaningful delta in effective rates?
gregk (anonymous)   |     |   Comment #7
It's easy to earn 1% plus on liquid accounts, and I myself still have several months to run with Everbank's 1.60% promotion. 

In any case, it's an individual decision, and nothing in the future a sure thing, so if you feel comfy with <3% for a long term commitment now (as I do not) I won't call you a fool.  But since there's at least much talk of an imminent Fed hike in June or July, why not wait just a bit to see if it happens and what the effect on CD rates might be?  Seems sensible to me. 
Anonymous   |     |   Comment #8
No one can predict the future. May want to use as a ladder. I'm with 3 CU's already. Don't like having all those $5 account's. Last time the Fed raised rates CD rates didn't go up. I remember many who said Penfed was smart by offering above market CD rates a short while back.
lou   |     |   Comment #9
Are any of you guys eligible to join this credit union?
gregk (anonymous)   |     |   Comment #10
Not eligible, Lou, - but I'm using Kentucky-Telco's offer as representative of a similar type one can find elsewhere quite readily now, that is, CD's requiring a long term commitment but paying substantially less than 3%, and speaking of my response to them.

Would you yourself presently accept 2.5% for a 3,4, or 5 year CD, before the next two Fed meetings?  I think it's inadvisable. 
lou   |     |   Comment #11
Greg, thankfully I don't have to make that decision until late Sept. To be honest, I have no idea where interest rates are going in the near term. It seems like the Fed wants to raise short-term rates, but will they pull the trigger? Every time they have threatened to do it, the stock market has a temper tantrum which causes them to hold off.  Any hiccup in the economy or elsewhere in the world also seems to make them gun-shy. Moreover, will an increase in the Fed Funds rate extend to 5-year CD rates? I will attempt to assess the macro and micro economic landscape in Sept and make a decision then.