Lone Star Credit Union (TX) Has Rate-Leading 60-Month CD
Long-term 5% CDs never did become widespread in this rate cycle, and there are signs that long-term CD rates may be on the way down. If you want to lock into a 5%+ long-term CD before rates fall, you’re most likely to find the CD at a credit union. Here is one of those credit unions in Texas.
Following rate increases this week, Lone Star Credit Union (LSCU) is offering competitive rates on its 12-month CD (5.25% APY) and 60-month CD (5.05% APY). A minimum opening deposit of $500 is required to open a CD and there is no stated balance cap.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 4.55% | $500 | - | Lone Star Credit Union | 60 Month CD | |
| 4.25% | $500 | - | Lone Star Credit Union | 12 Month CD |
The LSCU CD product line is small – 12-month, 36-month, and 60-month CDs. The 36-month CD currently earns 4.65% APY, which is unexceptional.
There is no Truth-in-Savings disclosure available on the LSCU website. According to CSR, the Early Withdrawal Penalty (EWP) is 180 days for the 12-month CD and 365 days for the 60-month CD. Partial withdrawals are allowed, subject to the EWP.
Availability and Account Opening
Headquartered in Dallas, Lone Star Credit Union’s field of membership (FOM) is community-based, with U.S. citizens and resident aliens who live or work in the Texas counties of Delta, Hopkins, Hunt, Kaufman, Rains, or Rockwell eligible to join. Those who live or work within a 10-mile radius of the LSCU's Dallas branch (7508 Ferguson Road) also qualify for membership.
Family members of those eligible to join LSCU are also membership-eligible.
Individuals who are employed by a business serviced by LSCU qualify for membership.
Joining LSCU and/or opening a CD can be done in-branch at three Texas branches located in Dallas, Greenville, and Terrell.
While the LSCU website has an “Open an LSCU Account” page, the “application” is really a Contact Me form that only asks for contact information.
Lone Star Credit Union needs the contact information you provide to us to contact you about our products and services.
According to CSR, following the submission of the “Open an LSCU Account” form, an LSCU official will contact you to open a new membership account. Your membership will be established after a signature card is sent to you and returned signed via DocuSign. Opening a CD can then be opened through a virtual appointment, over the phone, or in-branch. Appointments (virtual, by phone, and in-branch) are available and can be scheduled online.
A Share Savings account with a minimum $25 deposit is required for LSCU membership.
Funding and Other Details
The following information is from a conversation with CSR.
- Funding – ACH, wire, or check. Funds must be on deposit in a LSCU Share Savings account before opening a CD.
- CO-OP Shared Branch Participant – No.
- Ownership – Individual, joint, or in the name of a revocable trust.
- Interest – Compounded/credited quarterly; can be withdrawn penalty-free.
- Maturing Funds – Cashier’s check to address on file or internal transfer.
- Beneficiaries – Unlimited with equal shares; Social Security numbers are preferred but not required.
- Grace Period – 7 calendar days before automatic renewal.
- Credit Check – Hard pull.
Bank Overview
Lone Star Credit Union has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 5.83% (excellent), based on December 31, 2022 data. In the past year, LSCU has decreased its total non-brokered deposits by -$1.74 million, an average annual growth rate of -1.18%. Please refer to our financial overview of Lone Star Credit Union (NCUA Charter # 68449) for more details.
Lone Star Credit Union was chartered in 1967 as the Lone Star Gas Employees Federal Credit Union, with an FOM exclusive to those employees. (Lone Star Gas Company was established in 1909 to carry natural gas to Dallas and East Texas.) Following the acquisition of Lone Star Gas by Enserch Corporation in 1975, the credit union rebranded as Enserch Federal Credit Union. In 1998, Enserch Corporation was acquired by TXU Energy and the credit union severed its relationship with Enserch. The Lone Star Credit Union rebrand occurred in 2000 when a state charter was granted. While LSCU is a small credit union with approximately 10,600 members and assets in excess of $163 million, it has great growth potential: the six Texas counties and the portion of Dallas included in the FOM has an estimated population of nearly 1 million.
How the 60-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com which 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 Lone Star Credit Union 60-month CD. The following table compares the 60-month CD to the two highest-rate CDs from banks and the two highest-rate CDs from other credit unions.
How the 12-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com which 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 Lone Star Credit Union 12-month CD. The following table compares the 12-month CD to the two highest-rate CDs from banks and the two highest-rate CDs from other credit unions.
The above information and rates are accurate as of 4/15/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
I say within the next 4 weeks we’ll see another one, and Treasury yields begin rising again, as getting inflation under 4% just ain’t going to happen if the Fed goes on pause. The idea we’re ever heading back to 1% or 2% is a market delusion that won’t easily.die, but once FI’s (more quickly) get the message themselves, they’ll be freer with more long-term largesse as competition for funds continues to heat up. Astonishing to me that even presumably sophisticated observers like Ken believe ZIRP is a baseline norm now, towards which the Fed will quickly revert should even a hint of economic/financial distress arise. But that would bring on an even greater destruction.