LAFCU (MI) Debuts Rate-Leading 23-Month CD Special Available Statewide

Early Withdrawal Penalties

The Truth-in-Savings disclosure doesn’t include any specific Early Withdrawal Penalty (EWP) information. (“Early withdrawal penalties apply; refer to your Certificate of Deposit receipt.” Not very helpful if you’re doing due diligence.)

According to Ask a Question page (and confirmed by CSR), the rather unique EWP reads as follows:

The early withdrawal penalty is based on the term and certificate type.

CSR stated that partial withdrawals are allowed, but if not enough dividends have been earned or if the dividends have already been paid, the penalty will be deducted from the principal.

Availability

Headquartered in Lansing, Michigan, LAFCU’s field of membership (FOM) expanded exponentially more than four years ago. What was a small FOM (11 of Michigan’s smaller counties) transformed into a statewide community-based FOM. Individuals who live, work, worship, attend school, or own a business anywhere in Michigan are now eligible to join.

Immediate family members of an existing LAFCU member also qualify for membership, regardless of residency status.

Account Opening

Joining LAFCU and/or opening a Share Certificate Special can be done online or at any of ten Michigan branch locations in Charlotte, Corunna, Dewitt, Eaton Rapids, Lansing (3), Mason, Owosso, and St. Johns.

The membership application is also available as a download and can be returned by snail-mail.

Open your savings account by purchasing 5 shares, equal to $5, and you become part owner of LAFCU – with all the benefits of membership including voting privileges at our annual meeting.

Funding and Other Particulars

The following information is from a conversation with CSR.

Funding – ACH, wire ($10 fee), check, or shared branching transfer.
CO-OP Shared Branch Participant – Yes.
Ownership – Individual, joint, or trust. (Non-entity accounts, such as trust accounts, custodial accounts, and business accounts cannot be opened online.)
Dividends – Compounded and credit monthly and can be withdrawn without penalty.
Maturing Funds – Cashier’s check to address on file or internal transfer to a LAFCU Savings account.
Beneficiaries – Online application is limited to two beneficiaries; additional beneficiaries can be designated by phone after account opening. Percentages can be assigned. Social Security numbers are required for all beneficiaries.
Grace Period – 10 calendar days before automatic renewal.*
Credit Check – Soft pull.

*”The 9-month term will roll over to a 6 month term upon maturity, the 12 month term will stay at 12 months upon maturity, the 15 month term will roll over to a 12 month upon maturity, and the 23 month term will roll over to a 12 month term upon maturity.”

Credit Union Overview

LAFCU has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 10.01% (excellent) based on September 30, 2023 data. In the past year, LAFCU has increased its total non-brokered deposits by $48.26 million, an excellent annual growth rate of 5.84%. Please refer to our financial overview of LAFCU (NCUA Charter # 68632) for more details.

LAFCU is an acronym for “Lansing Automakers Federal Credit Union.” Founded in 1936 as the Oldsmakers Federal Credit Union, the original FOM included the employees of the Oldsmobile plant in Lansing, Michigan. As more automotive industry groups were added to the FOM, a more appropriate name was needed, with Lansing Automakers Federal Credit Union being a good fit. LAFCU is currently Michigan’s 24^th largest credit union, with more than 74,000 members and assets in excess of $1 billion.

How the 23-Month Share Certificate Special Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $10k or less, no banks or credit unions have higher rates than currently offered on the LAFCU 23-month Share Certificate Special. The following table compares the 23-month Share Certificate Special 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 1/5/2024.

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