The “limited-timed” 26-month Bump Rate Share Certificates (BRSC) added to Louisiana-based La Capitol Federal Credit Union (La Cap) product line 15 months ago is still available. Following a recent rate increase of 35 bps, the 26-month BRSC offers a rate-leading 5.50% APY. The opening minimum deposit is $25k of new money, which is defined as funds not currently on deposit in a La Cap account. While there is no end-date specified, La Cap “reserves the right to end or modify this offer at any time.”
Since the 26-month BRSC made its debut in July 2022, there have been seven rate increases adding a total of 323 bps.
The fine print on the landing page describes how the bump-up option works:
During the term of the 26-month Special Share Certificate, you are permitted to make a one-time request to adjust the dividend rate to the effective rate of the 2-year Thrifty Saver Certificate or 2-year Super Saver Certificate.
The minimum opening deposit amount of the Thrifty Saver Certificates and Super Saver Certificates must be met to adjust to the effective rate.
The new dividend rate will be paid for the remaining term of the special share certificate. The term of the special share certificate will remain the same.
Even though the 2-year Thrifty Saver Certificate and 2-year Super Saver Certificate had recent 25 bps rate increases, the APYs lag far behind the 5.50% APY currently offered on the 26-month Bump Rate Share Certificate. If you opened a 26-month Bump Rate Share Certificate in the past few months, the 5.15% APY or 5.25% APY is still significantly higher than the rates listed below.
Early Withdrawal Penalty
As stated in the fine print on the landing page, the Early Withdrawal Penalty reads as follows:
The penalty schedule is Terms of 1 year to less than 3 years 180 days’ dividends
A Bump Rate Share Certificate’s principal will be reduced if a withdrawal is made within the first 180 days of account opening.
Headquartered in Baton Rouge, Louisiana, La Capitol Federal Credit Union’s field of membership (FOM) is wide and varied, with a way for almost any U.S. citizen (18 years or older with a valid Social Security number) to qualify for membership.
Easy Membership: Members of the Louisiana Association for Personal Financial Achievement ($20 membership fee) are eligible for membership. Joining the association and applying for La Cap membership can be done simultaneously, using the credit union’s online application.
Residency: Individuals who live, work, worship, or attend school in the City of Baton Rouge or the underserved areas in 14 Louisiana parishes also qualify for membership.
LA parishes – Allen, Grant, Jefferson, Lincoln, Natchitoches, Orleans, Ouachita, Plaquemine, Rapides, St. Bernard, St. Charles, St. John, Terrebonne, and Tangipahoa.
Education Affiliation: Registered students at University of Louisiana at Monroe, Louisiana Tech University, Northwestern State University, Southeastern Louisiana University, Delgado Community College, Nunez Community College, or Baton Rouge Community College are eligible to join.
Employment: Employees of SEGs (listed on the online application) or of “any Louisiana state agency without its own credit union” qualify for membership.
Family Relationship: Immediate family members (spouse, child/stepchild, parent/stepparent, sibling, grandparent, and grandchild) of current La Cap members are welcome to apply. Extended family members who live in the same household as an La Cap member are also eligible to join.
Joining La Cap and/or opening a Bump Rate Share Certificate can be done online or at any of 15 Louisiana branches located in Alexandria, Baton Rouge (4), Hammond, Harvey, Houma, Metairie, Monroe (2), Natchitoches, Oakdale, Pineville, and Ruston.
The Membership Application is also available as a fillable PDF and can be returned in-person or by mail.
A $5 minimum deposit in a Regular Savings account establishes an La Cap membership, but a $100 minimum balance is required to earn dividends. The monthly service fee on a Regular Savings accounts is waived with a $100 minimum balance or if there is an active loan account or certificate account.
La Cap participates in the CO-OP Share Branching Network, providing nationwide locations where credit unions members can conduct basic financial transactions. Nearly 5,000 shared branches are currently open, serving more than 700 credit unions..
Funding and Other Details
The following information is from the Bump Rate Share Certificate landing page and a Live Chat with CSR.
- Funding – ACH, wire, internal transfer, or check (if opened in-branch).
- CO-OP Shared Branch Participant – Yes.
- Ownership – Individual, joint, or trust.
- Dividends – Compounded/credited monthly and can be “compounded in the Certificate Account, or transferred to your La Cap savings or checking account.”
- Maturing Funds – Cashier’s check to address on file, or internal transfer.
- Beneficiaries – Unlimited with percentages available. Social Security numbers are required for beneficiaries.
- Grace Period – 10 calendar days before renewing as a 2-year Thrifty Saver Certificate or 2-year Super Saver Certificate.
- Credit Check – Soft pull when joining.
Credit Union Overview
La Capitol Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 7.25% (excellent) based on June 30, 2023 data. In the past year, La Cap has increased its non-brokered deposits by $26.99 million, an excellent annual growth rate of 4.42%. Please refer to our financial overview of La Capitol Federal Credit Union (NCUA Charter # 14568) for more details.
Founded in 1961, the aptly named La Capitol Federal Credit Union’s first office was in the basement of the Louisiana state capitol building. The original FOM was exclusive to the employees of the State of Louisiana Department of Commerce and Industry. In 62 years, La Cap has grown to become Louisiana’s sixth largest credit union, with nearly 55,000 members and assets in excess of $721 million.
How the 26-Month Bump Rate Share Certificate Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $25k or less, no banks or credit unions have higher rates than currently offered on the La Capitol Federal Credit Union 26-month Bump Rate Share Certificate. The following table compares the 26-month Bump Rate Share Certificate 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 10/2/2023.
To look for the best CD rates, either nationwide or state-specific, please refer to our CD Rates Table page.