Last week, Latino Credit Union (Latino CU) raised the rate on its 48-month Share Term Certificate (STC) to 2.00% APY. The minimum opening deposit is $500, with no stated balance cap.
This rate increase is the first rate change for the 48-month STC in more than two years, and is the highest APY since its addition to the product line in March 2011.
No partial withdrawals can be made from a Latino CU STC. As stated in the Rules and Regulations brochure, the Early Withdrawal Penalty reads as follows:
The early withdrawal penalty for accounts with maturities greater than
two years will be the lesser of total interest earned or 180 days of interest.
Headquartered in Durham, North Carolina, Latino Credit Union offers membership to anyone who joins the Latino Community Development Center (LCDC) with a one-time $20 fee, which covers all family members. Founded in 2002, LCDC promotes financial literacy and education.
”You don’t have to be Latino to join!”
Latino CU’s “online application” is actually a fillable PDF that can be returned by email, fax, or in person at any of ten North Carolina branches located in Carrboro, Charlotte (2), Durham, Fayetteville, Greensboro, Monroe, Raleigh (2), and Winston Salem. Following application submission, the Credit Union will contact you to confirm your new membership.
Existing members can open a Share Term Certificate in-branch or online, but new and prospective members must visit a branch.
Credit Union Overview
Latino Credit Union (NCUA Charter # 68430) has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 10.00% (excellent) based on March 31, 2016 data. In the past year, Latino CU has increased its total non-brokered deposits by $36.13 million, an excellent annual growth rate of 22.14%. Please refer to our financial overview of Latino Credit Union for more details.
Latino Credit Union is the 14th largest credit union in North Carolina, with over 64,300 members and assets in excess of $240 million.
Latino Credit Union was founded in 2000 as a grassroots response to a wave of robberies and muggings of Latino immigrants in Durham, NC. Since then, it has become a national model for credit unions and community development financial institutions seeking to serve unbanked, immigrant communities.
The Credit Union was featured in a 2011 University of Virginia’s Darden School of Business and Tayloe Murphy Center study, as a base model of the positive effects of mainstream financial services on the unbanked.
In reviewing statistics from 1990 through 2008, the study found that each time LCU opened a branch
in North Carolina, the number of robberies dropped by an average of 57 per year, almost 4% percent in each county. The decline in crime also led to an increase in property value in those same counties.
How the Share Term Certificate Compares
When compared to the 168 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationally, Latino Credit Union's 48-month Share Term Certificate APY currently shares the top spot with CDs from NASA Federal Credit Union, Bay State Savings Banks, and XCEL Federal Credit Union.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.00% APY||48-Month Share Term Certificate||Latino Credit Union|
|1.91% APY||4-Year Share Certificate Special||Melrose Credit Union|
|1.81% APY||4-Year Yield Pledge CD||EverBank|
The above rates are accurate as of 12/30/2016.