Over the weekend, California-based Kinecta Federal Credit Union (Kinecta) raised the rates on its 5-year Jumbo Share Certificate (2.50% APY, $100k minimum) and 5-year Share Certificate (2.25% APY, $1k minimum).
The 5-year Share Certificates are also offered as IRAs, earning the same APYs with the same funding requirements.
According to the fine print on the Promotion Page, the 5-year Share and Jumbo Share Certificates qualify for a VIP Bonus. Kinecta’s Gold Club and Hughes Gold Elite Club offer an additional 0.05% and 0.10% rate increase, respectively, on Share Certificates.
Our VIP members deserve more! There’s no fee, and you don’t need
to sign up for anything. You’re automatically enrolled when you qualify.
As stated on the VIP Membership page, the requirements for the Gold Club reads as follows:
Gold Club - Minimum of $150,000 in combined balances (loans, deposits, & investments) including minimum of $10,000 in deposits & investments.
Either of the following: (A) minimum monthly average direct deposit of $250 to share accounts; OR (B) minimum monthly average of 3 transactions tied to share accounts.
The requirements for the Hughes Gold Elite Club are the same as for the Gold Club, but the Hughes Gold Elite Club also requires 20 or more years of Kinecta membership.
As stated in Kinecta’s Truth-in-Savings document, the Early Withdrawal Penalty (EWP) reads as follows:
Any withdrawal of the principal amount held in the account which does not reduce the balance of the account below the minimum qualifying amount will be subject to the following penalties:
A forfeiture of all dividends earned for 180 days or from the date of issuance or renewal
(if less than 180 days) on the amount withdrawn if the minimum term of the certificate is more than one (1) year.
Any withdrawal of the principal amount held in the account which reduces the balance of the account below the minimum quality amount will result in the cancellation of the certificate and the penalties set forth above will be applied to the entire principal amount.
The combination of a competitive rate and mild EWP (not to mention the additional VIP bonus rate) increases the Jumbo Share Certificate’s intrinsic value. DA’s EWP Calculator can determine on a month-by-month basis what the effective yields would be. For example,
- 1.68% APY, closed at 18 months
- 1.89% APY, closed at 2 years
- 2.10% APY, closed at 3 years
- 2.21% APY, closed at 4 years
If you were able to take advantage of the Gold Club’s additional 5 bps, the effective yields only become more attractive.
- 1.71% APY, closed at 18 months
- 1.92% APY, closed at 2 years
- 2.14% APY, closed at 3 years
- 2.25% APY, closed at 4 years
2-year Share and Jumbo Share Certificates
Kinecta also hiked its 2-year Share Certificate (1.75% APY, $1k) and 2-year Jumbo Share Certificate (2.00% APY, $100k) rates, with increases of 55 and 75 bps, respectively. While not as competitive as the 5-year Share and Jumbo Share Certificates, these new rates deserve be mentioned.
The 2-year Share Certificates are also offered as IRAs, earning the same APYs with the same funding requirements. They also qualify for the Gold Club and Hughes Gold Elite Club bonus rates.
Headquartered in Manhattan Beach in Southern California, Kinecta Federal Credit Union's field of membership is varied and wide, with a qualifying option for almost any U.S. citizen or resident alien.
Easy Membership - Joining Consumers Cooperative of Santa Monica (CCSSM) ($10 non-refundable membership fee) qualifies individuals for Kinecta membership. The Credit Union's online application allows you to join CCSSM and Kinecta simultaneously.
Residency - Individuals who live, work, worship, or attend school in select Zip Codes of Anaheim, Lancaster, Rialto, Santa Ana, and the Greater Los Angeles area qualify for membership.
Employment - Any current or retired employee of 480+ Select Employee Groups and their immediate family and household members are eligible for membership.
Association - Members of the El Segundo Sunshine Lions Club, Manhattan Heights Senior Citizens Club, Manhattan Beach Lions Club, Neptunian Woman's Club, Grand View Elementary PTA, and Riviera United Methodist Church are eligible to join.
Relationship - Immediate family (spouse, parent, child, sibling, grandparents, grandchild) or household member of a Kinecta member qualify for membership. There are two new additions to the relationship drop-down menu on the online application: friend and sponsor.
Joining Kinecta and/or opening a Share Certificate can be done online, or in person at any of 36 California branches located in Anaheim, Brea, Carson, Compton (2), El Segundo (3), Fountain Valley, Gardena, Goleta, Hawthorne, Hermosa, Highland Park, Inglewood (3), Lakewood, Lancaster, Los Angeles (2), Malibu, Manhattan Beach, Newport Beach, Rancho Cucamonga, Redondo Beach, San Diego, Santa Monica, Thousand Oaks, Torrance (2), Tustin, Westchester, Westlake Village, Westminster, and Woodland Hills.
Credit Union Overview
Kinecta Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.30% (excellent) based on June 30, 2017 data. In the past year, Kinecta increased its total non-brokered deposits by $226.53 million, an excellent growth rate of 6.78%. Please refer to our financial overview of Kinecta Federal Credit Union (NCUA Charter # 4142) for more details.
Hughes Aircraft Employees Federal Credit Union (HAEMFCU) came into existence in 1940 because of a simple inconvenience: employees of the Hughes Aircraft Company were using too much of their lunchtime driving downtown to handle their finances. So a credit union was started at the Hughes Aircraft plant. HAEMFCU continued to grow and service its members for 60 years, and in July 2001, the name was changed to Kinecta Federal Credit Union. Today, Kinecta Federal Credit Union is the 42nd largest credit union in the nation, with more than $4 billion in assets and serving over 285,400 member-owners across the country.
How the Jumbo Share Certificate Compares
When compared to the 188 similar length-of-term CDs tracked by DepositAccounts.com are available nationwide, Kinecta Federal Credit Union’s 5-year Jumbo Share Certificate APY currently ranks fourth, regardless of minimum deposit.
The above rates are accurate as of 10/23/2017.