NASA Federal Credit Union 9-Month CD Special Rate Makes A Comeback
In November 2019, NASA Federal Credit Union (NASA Federal) increased the rates on its three Share Certificate Specials (SCS), placing the APYs at or near the top of their respective term lengths. Those rates lasted three months before they began to drop to mediocre levels.
NASA Federal recently raised the rate on the 9-month SCS by 50 bps, giving it a competitive 1.50% APY. Surprisingly, the rates on the two other SCSs (15-month, 1.10% APY; 49-month, 1.35% APY) were actually lowered by 10 bps at the time of the 9-month SCS rate increase.
The minimum opening deposit is $10k, with no stated balance cap. In a change from my last NASA Federal blog post, new money is no longer required to open a 9-month SCS.
The SCS is also offered as an IRA (Traditional and Roth), earning the same APY with the same deposit requirements.
As stated in the Certificate Terms and Conditions document, the Early Withdrawal Penalty reads as follows:
182 days for certificate accounts with terms up to 24 months and
365 days for certificate accounts with terms greater than 24 months.
There is a 10-day grace period before the 9-month SCS automatically renews to a 6-month term. If you withdraw the funds, no interest will be paid for the grace period.
Funding and Accessing Maturing Funds
A Share Certificate Special must be funded within ten days of opening, with the rate guaranteed during those ten days. Options for funding include ACH, wire transfer, or through a transfer from an existing NASA Federal checking or savings account. NASA Federal participates in the CO-OP Shared Branch network, making the transfer of funds relatively simple.
Maturing funds can be distributed by check, wire, or transferred into an existing NASA Federal checking or savings account.
Beneficiaries
Unlimited beneficiaries (equal shares) can be named, with a Social Security number required for each beneficiary.
Availability
Headquartered in Upper Marlboro, Maryland, NASA Federal Credit Union’s field of membership offers a way for virtually anyone, with several ways to qualify:
Easy Membership: Membership in one of 14 affiliated associations, qualifies for Credit Union membership. NASA Federal will provide a one-year complimentary affiliated membership in the National Space Society (NSS), which “entitles you to full NASA Federal membership.”
Employment: Employees or retirees of NASA Headquarters, any NASA Center or Facility, or National Academy of Sciences are eligible for membership. In addition, any employee or member of one of 900+ NASA Federal partner companies also qualify for membership. (A complete list of partner companies can be found on the first page of the online application.)
Relationship: Relatives or household members of current NASA Federal members are eligible for membership (the online application requires the current member’s account number).
Joining NASA Federal and/or opening a Share Certificate Special can be done online. The Membership Certificate Application is also available as a download and specifically lists the three SCSs at the top of application.
Mail Application and Check to: NASA Federal Credit Union, Special Offer, P.O. Box 1538,
Bowie, MD 20717-1538. Be sure to fund your Certificate within 10 days of account opening!
NASA Federal has temporarily suspended access to all branch lobbies.
Outside ATMs will be available at all branch locations and drive-thru teller or remote teller service will be available at the Collington, Columbia, Greenbelt, and Oak Hall locations. Should you need in-person assistance, please call us at 301-390-4537. This is a temporary phone number to assist with branch-related transactions only.
A Primary Savings account (minimum $5 deposit) is required to establish a NASA Federal membership.
NASA Federal is a member of the CO-OP Shared Branch network, giving members access to more than 5,000 branch locations across the country (including more than 120 locations in the Washington DC metro area) to conduct many business transactions.
Shared Branches allow members of participating credit unions across the country to conduct most of their financial transactions as if they were at their own credit union branch.
Credit Union Overview
NASA Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 5.83% (excellent) based on December 31, 2019 data. In the past year, NASA Federal has increased its total non-brokered deposits by $276.62 million, an excellent annual growth rate of 12.95%. Please refer to our financial overview of NASA Federal Credit Union (NCUA Certificate # 6328) for more details.
NASA Federal Credit Union was established in 1949 when seven members of the scientific community (with a total of $2 in deposits) received approval for a credit union charter serving NASA employees. NASA FCU is currently the third largest credit union headquartered in Maryland and the 84th largest credit union in the nation, with assets in excess of $3.1 billion and more than 181,000 members.
How the Share Certificate Specials Compare
When compared to 205 similar length-of-term CDs tracked by DepositAccounts.com, which are nationally available and require a minimum deposit of $10k or less, NASA Federal Credit Union's 9-month Share Certificate Special APY currently ranks second.
The above rates are accurate as of 5/16/2020.
To find the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
1 Yr. 1.78%
18 Month 1.83%
2 Yr 1.88%
The rates require a minimum $50k deposit and are available through 5/31, but I bet they'll drop on 6/1.
I considered Advancial for an IRA CD, but they require a signature guarantee which where I live is unsafe to do, even if you can get it. Plus the fact that some of the recent IRA transfers I have been doing have been taking over a month to complete. So even if an FI changes its rate on the first of the month and you try to get that deal, you still may be too late. I feel like a dog chasing my tail. I've been missing deal after deal because the FIs don't process the paperwork fast enough.
Even when you overnight, upload, fax and wire things it is taking forever to transfer IRA funds right now. Just because you ask to have the funds wired doesn't mean it happens instantly. One major bank told me it would take 7-10 business days, from the day they receive the request to the day they send the wire. That means it could take over TWO WEEKS !!! (because next Monday is a holiday) just for that one step in the process. Some places are faster than others.
I've given up trying to catch the falling knife on IRA rates. I've spent 6 weeks dealing with these problems with (almost) nothing to show for it. Going to sit down by the tracks, open up a can of beans, watch the trains go by and take the market rate.
Pretty crappy Membership policies that were modified just a few months ago.... :(
One of my staff took a closer look at Advancial’s online application and started entering common words in the “I am an employee or member of an Advancial partner organization. Use the search field to find your employer or association” search field. When searching for "united," the United States Dog Agility Association (USDAA) popped up. According to USDAA’s website, anyone can join and there’s no cost to join.
https://www.depositaccounts.com/banks/advancial-cu/offers/
This doesn't necessarily mean joining the association will actually work, just that it's a possibility. I also looked at the Advancial online application, and found other entities that might be membership organizations (rather than employers) and might provide a way to join the credit union.
Advancial's membership application can be found at https://www.joinadvancial.org/
Look below "Let's Get Started" to find "I am an employee or member of an Advancial partner organization."
Additionally, from Advancial's "Membership Eligibility" page:
Still not sure if you qualify for an Advancial membership? Give us a call at 800.322.2709, and we will be happy to discuss an Advancial membership with you!
https://www.advancial.org/about-advancial/membership-information/
https://www.joinadvancial.org/
(From the application form, it does not seem possible to ascertain whether Costco members are eligible, or whether it's just for employees.)
Here's a link to the Advancial rates page. If they're no longer offering CD's as the CSR said, then why are they still posting their CD rates, with the fine print stating that the rates are effective thru 5/31?
LOL it's kind of funny that this thread originally concerned CD rates at NASA FCU, but every single comment has had to do with CD rates at Advancial! You can't beat 1.78%/1.83%/1.88% in this current rate environment, though.
After you seeing that original post, I asked the CSR I spoke to whether they were offering share certificates, and he said yes. He gave no indication that they were unavailable during our discussion about several specific certificates.
From "NASA Federal Credit Union eBranch Online Banking Service Agreement":
Limitations on Dollar Amounts for Transfers.
One-time transfers, scheduled, and recurring transfers between accounts within NASA Federal Credit Union can be for any amount but not more than the available balance in the account.
For Security reasons, limitations are placed on the number of and dollar amount of ACH deposits or payments you make. This includes ACH transfers made to your NASA FCU account or to your account at another financial institution. If your membership has been open 6 months or more, the maximum you are allowed to transfer to your NASA FCU account is $5,000 per day, and $25,000 per rolling 30-day period. If your membership has been open 6 months or less, the maximum you are allowed to transfer to your NASA FCU account is $500 per day, and $5,000 per rolling 30-day period. In addition, regardless of the age of your account, the amount of the deposit or payment will not be available to you for up to five (5) business days following the date of the transfer. Limitations may change from time to time.
(bold in original)
page 5 of PDF at https://www.nasafcu.com/docs/default-source/privacy-terms/eagreementtscs.pdf?sfvrsn=6cc2850e_40