Lafayette Federal Credit Union 3-Year Jumbo CD Remains Competitive

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Deal Summary: 3-year Jumbo CD, 5.20% APY, $100k minimum deposit.

Availability: Easy membership requirement.

Slightly more than a year ago, Maryland-based Lafayette Federal Credit Union (Lafayette Federal) unveiled a Jumbo CD product line, consisting of five certificates. While none of the Jumbo CDs have offered wow-worthy rates, the APYs have consistently been very good. The 3-year Jumbo CD currently offers a 5.20% APY, which is the most competitive rate in Lafayette Federal CD product line. The Jumbo CDs require a minimum $100k opening deposit, with no stated balance cap.

APYMINMAXINSTITUTIONPRODUCTDETAILS
4.58%$100k-Lafayette Federal Credit Union3 Year Jumbo CD
4.52%$500-Lafayette Federal Credit Union3 Year Fixed CD
Rates as of April 23, 2024.

Unlike the Fixed CDs, the Jumbo CDs are not available as IRA Jumbo CDs.

Early Withdrawal Penalties

As stated in the Fixed Rate Jumbo Certificate Addendum document, partial withdrawals are permitted and are subject to the following substantial Early Withdrawal Penalties (EWP):

We may impose a penalty if you withdraw any of the principal prior to maturity. Penalties for the fixed-rate jumbo certificates will be imposed on amounts withdrawn whether dividends have been earned or not at the rate paid or payable for the term as follows:

  • 1-year jumbo, 180 days of dividends
  • 2-year jumbo, 270 days of dividends
  • 3-year jumbo, 360 days of dividends
  • 4-year jumbo, 480 days of dividends
  • 5-year jumbo, 600 days of dividends

This may reduce the principal. If the withdrawal reduces the Certificate below the minimum balance, it will be closed.

Lafayette FCU also stipulates that,

The bylaws of this Credit Union provide authority to impose a notice of up to 60 days for withdrawal of funds.

These are some of the harshest EWPs currently imposed by any credit union or bank. If the Lafayette Federal 3-year Jumbo CD is closed before the 360 days threshold, the penalty will eat into the principal.

New Member Promotion

Lafayette Federal continues to offer bonuses (totaling up to $750) to individuals who “make the switch” and join the credit union.

  • $100 when you open a Lafayette Federal Checking Account and establish Qualified Direct Deposit
  • $50 when you open a Lafayette Federal Credit Card
  • $50 when you open a Lafayette Federal Share Certificate with $10,000+
  • $50 when you open a Lafayette Federal Preferred or Premier Savings with $10,000+
  • $500 closing cost credit towards a Lafayette Federal Mortgage Loan

The fine print on the landing page states,

Offer subject to change without notice. Cannot be combined with any other new member offers. Members who have received previous new member/direct deposit promotions in the past 12 months do not qualify. Business accounts are excluded from offer. Membership eligibility required. Must first set up Checking/Qualified Direct Deposit to be eligible for the remaining incentive money.

Availability

Headquartered in Rockville, Maryland, Lafayette Federal Credit Union’s field of membership (FOM) offers a way to join for almost any US citizen or resident alien.

Easy membership – Joining the Home Owner Financial Literary Council (one-time $10 fee) qualifies for Lafayette FCU membership.

Limited easy membership – Residents of Maryland, Virginia, and Washington, D.C. can qualify for membership through the American Consumer Council.

Residency – Individuals who live or work in that part of Montgomery County, Maryland known as Potomac, or who live, work, worship, or attend school in Washington, D.C., are also eligible to join.

Employment – Employees and retirees of nearly 200 companies are eligible to join. According to the online application, a copy of two pay stubs is required to show proof of employment.

Family relationship – Immediate family members (spouse, parent, sibling, child, grandparent, grandchild) of current Lafayette FCU members are welcome to apply.

Account Availability

Joining Lafayette Federal and/or opening a Jumbo CD can be done online. While the Washington, DC SBA branch location continues to be “temporarily closed,” the remaining six full-service branch locations in Maryland (3), Virginia (2), and Washington, D.C. (2) are open to walk-in traffic. Appointments are available and can be scheduled online.

A Share Savings account must be opened with a minimum deposit of $50. A
minimum balance of $50 is required to retain your membership in the credit union.

Lafayette Federal participates in both the CO-OP Shared Branch and fee-free ATM networks.

With shared branching, you can conduct banking business in every state
across the country. Choose from more than 5,600 shared branching locations!

Funding and Other Details

  • Funding – ACH, wire, check, internal transfer, shared branch transaction.
  • CO-OP Shared Branch Participant – Yes.
  • Ownership – Individual, joint, or trust.
  • Dividends – Compounded/credited quarterly and may be withdrawn penalty-free at any time.
  • Maturing Funds – Cashier’s check or transferred into another Lafayette FCU account.
  • Grace Period - Ten calendar days before a Jumbo CD automatically renews as a “standard certificate dividend rate unless otherwise stipulated by the member.”
  • Beneficiaries – Unlimited, equal shares, Social Security number required.

Credit Union Overview

Lafayette Federal Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 11.92% (above average), based on June 30, 2023 data. In the past year, Lafayette FCU has increased its total non-brokered deposits by $346.98 million, an excellent annual growth rate of 41.35%. Please refer to our financial overview of Lafayette Federal Credit Union (NCUA Charter # 619) for more details.

Chartered in 1935, Lafayette Federal Credit Union was originally known as the 1825 H Street Federal Credit Union, serving the employees of the Reconstruction Finance Corporation, the RFC Mortgage Company, and the Commodity Credit Corporation. (FYI – 1935 was a banner year for new credit unions, with more than 800 charters granted that year.) Following a relocation to the Lafayette Building in the District in 1940, the credit union adopted the Lafayette name. The largest FOM expansions occurred in 2012 (American Consumer Council membership for residents of MD, VA, DC) and 2019 (Home Owner Financial Literary Council for all U.S. residents). Lafayette FCU is currently the sixth largest credit union headquartered in Maryland, with more than 57,000 members and assets in excess of $1.8 billion.

According to a recent press release,

We are excited to share with you that Lafayette Federal Credit Union has been named to America’s Best Banks List 2023 by Newsweek, a second-year recognition for our growing credit union. Newsweek partnered with Lending Tree to assess thousands of banks and credit unions nationwide, using a ranking system with over 50 different factors to present best-in-class options for consumers. For two years in a row, Lafayette Federal outperformed even the largest banks and credit unions in the country, marking an extraordinarily proud moment for our organization.

How the 3-year Jumbo CD Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, one bank and two credit unions have higher rates than currently offered on the Lafayette Federal Credit Union 3-year Jumbo CD, regardless of minimum deposit requirements. The following tables compares the 3-year Jumbo CD 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 12/7/2023.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Related Pages: Washington CD rates, 5-year CD rates, nationwide deals

Comments
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Availability: Easy membership requirement.

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