California-based Kinecta Federal Credit Union (Kinecta) is the latest credit union to offer a short-term 5% CD Special. This one is a 15-month Certificate Promotion. With tiered APYs of 5.00% and 5.05%, the 15-month Certificate Promotion requires new money, with minimum deposits of $100 and $100k, respectively. “New money” is defined simply as funds not currently on deposit with Kinecta.
According to the fine print on the VIP Page, Promotional 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.
Being treated like a VIP is a pretty big deal. As a VIP, you’ll have access to exclusive benefits. No sign-ups or fees to join. You’ll be automatically enrolled once 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 the Kinecta Truth-in-Savings disclosure, the Early Withdrawal Penalty reads as follows:
The Credit Union will terminate the Term Share Certificate Account and impose a penalty on the amount of withdrawal from the account if a withdrawal of principal is made prior to the Maturity Date.
If the Term Share Certificate has a term to maturity greater than one (1) year, the penalty imposed will equal one-hundred eighty (180) days of dividends.
Headquartered in Manhattan Beach in Southern California, Kinecta Federal Credit Union's field of membership (FOM) offers a qualifying option for almost any U.S. citizen or resident alien, 18 years or older with a valid Social Security number.
Easy Membership – Joining Innovision Society ($10 membership fee which Kinecta will cover) qualifies for Kinecta membership. The Credit Union's online application allows you to join Innovision Society and Kinecta simultaneously.
Residency – Individuals who live, work, or attend school in select Zip Codes in the Greater Los Angeles metro area, three Dallas area counties, St. Petersburg (FL), Rosemont (IL), or the greater Rochester (NY) area qualify for membership.
Employment – Any current or retired employee of nearly 200 Select Employee Groups are eligible for membership.
Relationship – Immediate family (spouse, parent, child, sibling, grandparents, grandchild, step-family) or a household member of a current Kinecta member qualify for membership.
Joining Kinecta can be done online, or in person at any of 25 California branches, the vast majority of which are in Southern California. Kinecta also has single branches in Boca Raton (FL) and Parsippany (NJ), and four branches in the Rochester (NY) area.
Opening a Regular Share Account with a $5 minimum deposit establishes a Kinecta membership.
When CSR told me a 15-Month Certificate Promotion could not be opened online, I thought I had misunderstood. Although the Rates page states that current Kinecta members can open additional accounts using the Online Banking platform, the 15-Month Certificate Promotion landing page states
Stop by a branch or book a virtual appointment to meet with a live agent at your convenience.
Funding and Other Details
The following information is from a Live Chat.
- Funding – ACH, Wire, shared branch transaction.
- CO-OP Shared Branch Participant – Yes.
- Dividends – Compounded/credited monthly, but cannot be withdrawn penalty-free.
- Maturing Funds – ACH, Wire ($25), cashier’s check to address on file, internal transfer to Kinecta savings/checking account.
- Beneficiaries – Unlimited, percentages can be assigned, Social Security numbers are required.
- Grace Period – 7 calendar days before automatic renewal.
- Credit Check – Soft pull when joining (Experian).
Credit Union Overview
Kinecta Federal Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 3.19% (excellent) based on September 30, 2022 data. Kinecta has an average capitalization level (8.40%), the result of holding assets of $6.47 with $544.05 million in equity. Please refer to our financial overview of Kinecta Federal Credit Union (NCUA Charter # 4142) for more details.
Hughes Aircraft Employees Federal Credit Union (HAEMFCU) was established in 1940 because of an inconvenience: employees of the Hughes Aircraft Company were using too much of their lunchtime driving downtown to handle their finances. The solution? An employee credit union located in 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. Kinecta Federal Credit Union is currently the 48st largest credit union in the nation, with more than $5.8 billion in deposits and serving more than 270,000 member-owners across the country.
How the 15-Month Certificate Promotion Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, no banks or credit unions have higher rates than currently offered on the Kinecta Federal Credit Union 15-Month Certificate Promotion, regardless of deposit requirements. The following table compares the 15-Month Certificate Promotion to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 1/30/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.