First the bad news: toward the end of February, I wrote about NEFCU’s 18-month Penalty Free CD (1.85% APY). Sometime in the past two weeks, the Penalty Free CD was withdrawn.
The good news is that NEFCU (the former Nassau Educators Federal Credit Union) started this week by raising the rate on its 3-year Certificate to 3.00% APY. The minimum deposit is $1k, with no stated balance cap.
|2.60%||$1k||-||NEFCU||3 Year Certificate|
|2.60%||$500||-||NEFCU||3 Year IRA (Traditional, Roth)|
The 3-year Certificate’s APR is 2.916% and, at first glance, it seemed a bit off. DA reader, barry_NY, commented about this issue on my NEFCU February blog post.
I had this APY issue before with NEFCU. Their calculation is a bit ****y, but it works.
Its based on a 360 day calendar, compounded on a 365 day year. (1+R/360)^365.
I did the math: using barry_NY’s formula, the 2.916% rate works out to an APY of 3.00%. Thank you, barry_NY!
The Certificate is also available as an IRA (Traditional and Roth) earning the same APY, but only requires a $500 minimum opening deposit.
In the past year, the 3-year Certificate has had four rate increases, adding a total of 165 bps. This latest 3.00% APY is the highest rate since DA started tracking the 3-year Certificate in late 2009.
As stated in the Important Account Information brochure, the Early Withdrawal Penalty reads as follows:
If the term of the Certificate is 3 years or greater,
the penalty is 270 days dividends on the amount withdrawn.
Headquartered in Westbury, New York, NEFCU’s field of membership (FOM) is residency based, with individuals who live, work, or attend school in Nassau County or Suffolk County (Long Island) eligible to join.
Any existing NEFCU member can sponsor an immediate family member (parent, child, grandparent, or sibling) or any household member for NEFCU membership.
While many credit unions include an "eligible for membership" list on their website, NEFCU has a "NOT eligible for membership" list.
Membership is not open to the following areas on Long Island:
East Hampton, Southhampton and Shelter Island.
Joining NEFCU and/or opening a Certificate can be done online or at any of twelve Long Island branches, located in Commack, Franklin Square, Greenvale, Huntington Station, Massapequa, New Hyde Park, Plainview, Rockville Centre, Syosset, Valley Stream, Wantagh, and Westbury.
Credit Union Overview
NEFCU has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 5.51% (excellent), based on December 31, 2017 data. In the past year, NEFCU increased its total non-brokered deposit by $237.02 million, an excellent annual growth rate of 10.28%. Please refer to our financial overview of NEFCU (NCUA Charter # 2760) for more details.
NEFCU was founded in 1938 as the Valley Stream Teachers Federal Credit Union with 10 members and $50 in assets. The initial FOM included employees of Nassau County schools, colleges and universities, public libraries, and other affiliated groups. The name was changed to NEFCU in 1981, to better reflect the growth and expansion of the credit union. In 2010, NEFCU was granted a community charter, allowing for an ever greater broadening of the FOM in Nassau and Suffolk Counties. Currently, NEFCU serves more than 181,400 members and holds assets in excess of $2.8 billion.
How the Certificate Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available within the FOM, NEFCU’s 3-year Certificate APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|3.00% APY||3-Year Certificate||NEFCU|
|2.65% APY||36-41 Month CD||National Bank of New York City|
|2.60% APY||3-Year CD||Live Oak Bank|
The above rates are accurate as of 3/28/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.