Latino Credit Union Offers Top Rates On Short-Term Jumbo CDs
North Carolina-based Latino Credit Union (LCU) recently raised its short-term Jumbo CD rates, while significantly lowering the long-term Jumbo CD rates. The short-term rate increases were disparate, with the 6-month, 12-month, and 18-month Jumbo CDs gaining 95, 30, and 20 bps, respectively. Chances are good that the three short-term Jumbo CDs will be near or at the top of the 6-month, 1-year, and 18-month categories in next week’s CD Deals Summary.
It’s disappointing to see such big rate drops on the 36-month (-65 bps), 48-month (-160 bps), and 60-month (-155 bps) Jumbo CDs. This might suggest that many savers are taking advantage of high long-term CD APYs before rates fall.
A Little LCU Jumbo CD History
After a long hiatus, LCU brought back its competitive long-term Jumbo CDs ($100k min) this past February. Just a month later, LCU added a second rate tier to the Jumbo CDs requiring a $200k minimum deposit; at that time, the $200k APYs were a uniform 25 bps higher than the $100k APYs. The gap between the two APY tiers has widen with subsequent rate increases: the $200k APYs are currently 5-55 bps higher than the $100k APYs.
N.B. – Interest on the Jumbo CD accrues daily, but does NOT compound. As stated in the Rules and Regulations Brochure (page 10).
Interest is paid monthly by automatic transfer from the STC into an account of your choice at LCU; however, if the term is six or 12 months, you may request instead that interest be paid when the STC matures.
For those interested in receiving a monthly interest check, the Jumbo CDs are even more competitive when comparing interest rates. For example, the Credit Human 12-17 month CD earns 5.80% APY, 10 bps less than the LCU 12-month Jumbo CD APY. But if you compare interest rates, the Credit Human 12-17 month 5.65% interest rate is 25 bps lower than the LCU 12-month Jumbo CD APY.
Early Withdrawal Penalty
LCCU does not permit partial withdrawals: a CD can only be closed early. As stated in the fine print on Certificates of Deposit page, the Early Withdrawal Penalty (EWP) reads as follows:
If funds are withdrawn from your STC before the maturity date, an early withdrawal penalty may be charged. The penalty equals 90 days’ interest on the principal amount or the actual interest earned, whichever is less.
Any withdrawal made within the first 90 days after opening will reduce principal.
Availability
Headquartered in Durham, North Carolina, Latino Community Credit Union offers membership to any U.S. resident with a valid Social Security number through the Latino Community Development Center (LCDC). Founded in 2002, LCDC is a nonprofit organization, which promotes financial literacy and education. There is a one-time $10 fee to join LCDC and the fee covers all family members.
Joining LCCU can be done online or in person at any of 15 North Carolina branches located in Carrboro, Charlotte (4), Durham (2), Fayetteville, Greensboro (2), High Point, Monroe, Raleigh (2), and Winston Salem.
After a Share Savings account has been opened ($10 minimum), additional accounts (such as a Jumbo CD) can be opened by using the Latino DirectNet online platform. A Jumbo CD can also be opened at any of the above-mentioned branch locations.
Account Opening
Funding and Other Particulars
The following is from the Rules and Regulations Brochure and a conversation with CSR.
- Funding – ACH, wire, or internal transfer.
- Ownership – Individual, joint, or trust.
- CO-OP Shared Branch Network – No.
- Dividends – No compounding; “Interest is paid monthly by automatic transfer from the STC into an account of your choice at LCCU.”
- Maturing Funds – Wire, cashier’s check to address on file, or transferred to an LCCU savings/checking account.
- Grace Period – 7 calendar days before automatic renewal.
- Beneficiaries – Unlimited, with equal shares; Social Security numbers are required for all beneficiaries.
- Credit Check – Soft pull when joining.
Credit Union Overview
Latino Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 6.70% (excellent) based on June 30, 2023 data. In the past year, LCU’s total non-brokered deposits decreased by -$29.08 million, a below average annual growth rate of -4.33%. Please refer to our financial overview of Latino Community Credit Union (NCUA Charter # 68430) for more details.
Chartered in 2000, Latino Credit Union was established to serve the unbanked and immigrant communities in Durham, North Carolina. A series of robberies and muggings of Latino immigrants in Durham was the motivation behind The Support Center, El Centro Hispano, NC State Employees’ Credit Union, and Self-Help Credit Union joining forces to form LCU. Currently the tenth largest credit union headquartered in North Carolina, LCU has more than 128,000 members and assets in excess of $948 million.
In support of the local community, the LLCU Scholarship Program was established to “increase access and opportunity to communities that are traditionally marginalized.” According to the Scholarship Program page,
Since 2016, our Scholarship Program has supported our members’ academic journeys by making 217 awards for $724,000.
Every time a member swipes their debit card, LCCU donates to its scholarship fund. The more our members use their debit cards, the more the fund grows! Additionally, our Employees Giving Back campaign makes a significant contribution to the Scholarship Fund each year.
How the 6-Month and 12-Month Jumbo CDs Compare
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, no banks or credit unions have higher rates than currently offered on the Latino Credit Union Jumbo CDs ($200k), regardless of minimum deposit requirements. The following tables compares the 6-month and 12-month Jumbo CDs to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
| APY | CD Term (Early Withdrawal Penalty) | Credit Union/Bank |
|---|---|---|
| 5.85% | 6-Month Jumbo CD, $200k min (EWP=lesser of 90 days or all dividends accrued) | Latino Credit Union |
| 5.75% | 9-Month CD Special, $1k (EWP=90 days) | BluPeak Credit Union |
| 5.75% | 6-Month Certificate, $500 min (EWP=180 days) | USALLIANCE Financial |
| 5.60% | 9-Month CD, $50k min (EWP=90 days) | Finworth |
| 5.59% | 6-Month Jumbo Online Time Deposit, $100k min (EWP=90 days) | My eBanc |
| APY | CD Term (Early Withdrawal Penalty) | Credit Union/Bank |
|---|---|---|
| 5.90% | 12-Month Jumbo CD, $200k min (EWP=lesser of 90 days or all dividends accrued) | Latino Credit Union |
| 5.80% | 12-17 Month CD, $500 min (EWP=greater of $50 or 270 days) | Credit Human |
| 5.80% | 12-Month Jumbo CD, $100k min (EWP=90 days) | All In Credit Union |
| 5.77% | 12-Month Jumbo Online Time Deposit, $100k min (EWP=90 days) | My eBanc |
| 5.67% | 12-Month CD, $500 min (EWP=90 days) | CFG Bank |
How the 18-Month Jumbo CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, one bank and one credit union have higher rates than currently offered on the Latino Credit Union 18-month Jumbo CD ($200k), regardless of minimum deposit requirements. The following tables compares the 18-month Jumbo CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
| APY | CD Term (Early Withdrawal Penalty) | Credit Union/Bank |
|---|---|---|
| 5.80% | 12-17 Month CD, $500 min (EWP=greater of $50 or 270 days) | Credit Human |
| 5.80% | 15-Month CD, $50k min (EWP=180 days) | Finworth |
| 5.70% | 18-Month Jumbo CD, $200k min (EWP=lesser of 90 days or all dividends accrued) | Latino Credit Union |
| 5.65% | 15-Month Jumbo CD, $100k min (EWP=180 days) | Credit One Bank |
| 5.59% | 18-Month Jumbo CD, $100k (EWP=90 days) | All In Credit Union |
The above information and rates are accurate as of 9/21/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
