In April, I wrote about MIDFLORIDA Credit Union’s 60-month Step Up Certificate with a blended 3.04% APY. That limited time offer has expired, but MIDFLORIDA Credit Union is currently offering a 36-month Step Up Certificate (blended 2.02% APY).
The 36-month Step Up Certificate is advertised as available for "limited time only," but there is no specific end-date stated. The minimum opening deposit is $1K of new money, with a maximum deposit of $1M per person.
While the 36-month Step Up CD is not listed in MIDFLORIDA Credit Union’s Rate Table, complete details can be found on the promotion page.
The breakdown of the tiered dividend rate is as follows:
- 1.00% – Year 1
- 2.00% – Year 2
- 3.00% – Year 3
- 2.02% – Overall blended APY
As stated on MIDFLORIDA Credit Union’s Terms and Conditions page, the Early Withdrawal Penalty (EWP) reads as follows:
If your account has an original maturity of 25 months - 48 months: The penalty we may impose will equal 24 months dividends on the amount withdrawn subject to penalty.
Pros and Cons
The Pros and Cons for the 36-month Step Up Certificate are basically the same issues I addressed in my earlier blog: the "Pro" is obviously the 2.02% APY; the "Con" is the EWP of 24 months dividends. Not only is 24 months of dividends a substantial penalty, it is not clearly stated in the Terms and Conditions document which interest rate (blended APY or APY associated with year of withdrawal) will be used to calculate the penalty. As always, the best and safest route to maximize your investment is not to disturb the principal until maturity, but the exact terms of the EWP should be discussed to ensure no unexpected (and unpleasant) surprises.
Many thanks to the DA reader who emailed me about this CD special.
Membership in MIDFLORIDA Credit Union is open to individuals who live, work, worship, or attend school in the following Florida counties: Charlotte, DeSoto, Glades, Hardee, Hernando, Highlands, Hillsborough, Indian River, Lake, Manatee, Martin, Okeechobee. Orange, Osceola, Pasco, Pinellas, Polk, Sarasota, Seminole, St. Lucie, and Sumter.
Portions of Brevard County also qualify for membership eligibility, based on residency, employment, religious affiliation, or school attendance in the following Zip Codes: 32908, 32909, 32949, and 23976.
Joining MIDFLORIDA CU and/or opening a CD requires an in-person visit to any of 39 Florida branches located in Arcadia, Auburndale, Avon Park, Bartow, Bay Pines, Brandon, Clearwater, Davenport, Haines City, Kissimmee, Lake Placid, Lake Wales, Lakeland (8), Land O Lakes, Lutz, Okeechobee, Pinellas Park, Plant City, Port Saint Lucie, Sebastian, Sebring (3), Tampa (4), Vero Beach, Wauchula, and Winter Haven (3).
Credit Union Overview
MIDFLORIDA Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 3.80% (excellent), based on March 31, 2015 data. In the past year, MIDFLORIDA CU (NCUA Certificate # 68600) increased its total deposit by $124.77 Million, an excellent annual growth rate of 7.45%. Please refer to our financial overview of MIDFLORIDA Credit Union for more details.
In 1954, a shoebox in the home of a Polk County school teacher served as the initial repository for the newly established Polk County Teachers Credit Union. The Credit Union’s membership was limited to educational employees for 43 years, but in 1997 the charter was changed to a residency based field of membership. The next 15 years saw two name changes, two mergers, another charter change, and expansion into several counties. MIDFLORIDA Credit Union today has 212,000+ members and assets in excess of $2.2 Billion.
How the CD Compares
Given the nature of the Step Up Certificate, I’ve chosen to use the blended 2.02% APY for comparison. Therefore, when compared to 262 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available to Florida residents, MIDFLORIDA Credit Union’s 36-month Step Up Certificate currently is the leader.
The above rates are accurate as of 7/10/2015.
To search for nationwide CD rates and CD rates in your state, please refer to the CD rates section of DepositAccounts.com.