Magnifi Financial Adds Nationally Available Rate-Leading 7-Month CD

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Update 1/18/23: The 7-month CD Special has expired.

Deal Summary: 7-month Certificate Special, 5.00% APY, $25k min/$250k max deposit, at least 50% of deposit must be new money.

Availability: Easy membership requirement.

For a limited time, Minnesota-based Magnifi Financial is offering a 7-month Certificate Special earning 5.00% APY. The minimum opening deposit is $25k; the maximum deposit is $250k. There is no specified end-date mentioned on the Magnifi Financial website and CSR stated she had no information as to how long the 7-month Certificate Special would be available.

According to the fine print on the landing page,

To be eligible for the 5.00% APY rate, at least 50% of the opening balance must be new money to Magnifi Financial.

4.00% APY rate applies if less than 50% are existing Magnifi Financial funds.

As stated in the fine print of the Certificates page, the Early Withdrawal Penalty reads as follows:

Terms of less than 9 months = 90 Days' Dividends.

CSR stated that partial withdrawals are allowed as long as the Certificate Special balance does not fall below the $25k minimum level.

Availability

Headquartered in Melrose, Minnesota, Magnifi Financial’s field of membership (FOM) has recently expanded to include virtually all U.S. citizens and residents aliens.

Easy Membership Requirement: Individuals who make a $10 donation to the Magnifi Foundation qualify for Magnifi Financial membership. Businesses can also join by making a $50 donation.

Residency: Those who live, work, worship, volunteer, attend school, or do business in 28 Minnesota counties, two North Dakota counties, and two Wisconsin counties also qualify for membership.

  • Minnesota counties – Anoka, Benton, Becker, Carver, Clay, Chisago, Crow Wing, Douglas, Dakota, Grant, Hennepin, Isanti, Kandiyohi, McLeod, Meeker, Mille Lacs, Morrison, Otter Tail, Pope, Ramsey, Scott, Sherburne, Stearns, Todd, Wadena, Washington, Wilkin, or Wright.
  • North Dakota counties – Cass or Richland.
  • Wisconsin counties – Pierce or St. Croix.

Family Relationship: - Family members of a current Magnifi Financial member are also welcome to apply.

Account Opening

Joining Magnifi Financial and/or opening a Certificate Special can be done online or at any of 23 Minnesota branches located in Albany, Avon, Belgrade, Brooklyn Center, Gold Spring, Freeport, Glenwood, Grey Eagle, Holdingford, Little Falls, Long Prairie, Melrose (2), Moorhead, New York Mills, Paynesville, Perham, Saint Joseph, Sartell, Sauk Centre, Spicer, Wadena, and Waite Park.

A $5 minimum deposit in a Membership Share account establishes a Magnifi Financial membership.

Funding and Other Details

The following information is from a LiveChat with CSR.

  • Funding – ACH, wire ($10 fee), or check (if opening in-branch).
  • CO-OP Shared Branch Participant – No.
  • Dividends – Compounded/credited monthly and can be withdrawn penalty free.
  • Maturing Funds – Cashier’s check, wire ($25 fee), or internal transfer to savings/checking account.
  • Beneficiaries – Unlimited, equal shares, Social Security numbers are required.
  • Grace Period – 10 calendar days before automatic renewal as a regular 6-month Certificate.
  • Credit Check – Soft pull.

Credit Union Overview

Magnifi Financial has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 0.35% (excellent) based on September 30, 2022 data. In the past year, Magnifi has increased its total non-brokered deposits by $151.9 million, an excellent annual growth rate of 11.2%. Please refer to our financial overview of Magnifi Financial (NCUA Charter # 68604) for more details.

Founded in 1939 as Central Minnesota Credit Union, Magnifi Financial is currently the fifth largest credit union headquartered in Minnesota, with more than 74,000 members and assets in excess of $1.7 billion. The Magnifi Financial rebrand is recent, with the name change finalized on March 1, 2022. According to a February 2022 BUSINESS WIRE article,

Central Minnesota Credit Union (CMCU), a member-owned financial services cooperative, announced that it is changing its name to Magnifi Financial, effective March 1. As part of the transition, CMCU will unveil a new visual identity, including logo, signage, website and advertising. Magnifi Financial will remain a credit union, with the same credit union charter, business model and community-centered philosophy.

“Magnifi Financial is an acknowledgement of how much we’ve grown as an organization,” said Charles Friederichs, CMCU Chief Executive Officer. “We are changing our name to better reflect our growing membership, which has grown beyond central Minnesota and extends from western North Dakota through the Twin Cities metro into Wisconsin.”

How the 7-Month 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 $25k or less, no banks or credit unions have higher rates than currently offered on the Magnifi Financial 7-Month Certificate Special. The following table compares the 7-Month Certificate Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.

APYCD Term (Early Withdrawal Penalty)Credit Union/Bank
5.00%7-Month CD Special (EWP=90 days)Magnifi Financial
5.00%6-Month High Rate Certificate (EWP=90 days)Dover Federal Credit Union
4.60%9-Month Share Certificate Special (EWP=182 days)NASA Federal Credit Union
4.50%6-Month Popular Direct CD (EWP=120 days)Popular Direct
4.50%9-Month CD (EWP=50% of maturity interest)Brilliant Bank

The above information and rates are accurate as of 1/13/2023.

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

Related Pages: Minneapolis CD rates, Fargo CD rates, 1-year CD rates, nationwide deals

Comments
rockies
  |     |   Comment #1
I'll make another plug for RichardW's post on taxable equivalent yields of short term T-bills. Before proceeding with this CD, you may want to read.
https://www.depositaccounts.com/community/misc/51048-comparing-taxequivalent-yields-6month-tbill-6mo...
P_D
  |     |   Comment #2
At this moment the market yield on a 6-month treasury is just under 4.8%. if you ignore that the CD/Certificate is 7 months and not 6, I think you can simplify it by generalizing that most people who are subject to a state income tax will end up with more money at the end of 6 months with the treasury after taxes than they would with this CD.

But there are risks to this assumption.

First of all are you buying the treasury as a new issue or on the secondary market? If you're buying it on the secondary market it's possible your yield will be less than the 4.8% you see published in the media primarily because of the spread.

If you are buying the treasury as a new issue on a non-competitive basis, which is the way most individuals do, you are essentially writing a blank check since you do not know what the results of the auction will be in advance. You are agreeing to take whatever yield you get. That has some risk to it, especially when the markets are volatile.

And a third point is that determining the tax equivalent yield is not necessarily as simple as it sounds. If you buy a 6-month Treasury bill in July for example that pays all of its taxable interest at maturity, you are deferring most of the federally taxable interest from the purchase year to the following year*. Depending on your tax situation, that could put you in a higher bracket in the second year. That factor is almost never discussed but has a bearing on the real so-called "tax equivalent yield" when comparing these two investments as the CD distributes its taxable interest monthly.

Although this kind of comparison is not quite as simple as it may seem or it is often portrayed, and if you are talking about small dollar amounts it probably doesn't make all that much difference, the answer is not necessarily as clear as it sounds.

In general I agree that most people who are subject to a state and/or local income tax would probably be better off with treasuries for maturities one year or less in the current market.

*Here's the footnote for those who think this is supposed to be a doctoral dissertation. You may be able to avoid deferring the interest in some cases by declaring the phantom interest in the first year even if you don't receive it by proactively electing that on your taxes. But doing that has other implications that are complicated and most people are not going to do that.
Pink88Dragon
  |     |   Comment #3
U.S. Treasury Secretary Janet Yellen said on Friday that the United States will likely hit the $31.4 trillion statutory debt limit on Jan. 19, forcing the Treasury to launch extraordinary cash management measures that can likely prevent default until early June. Does that put buying T-bills at greater risk given the Republican house views on the national debt? Your thoughts please

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