Earlier this month, NEFCU (formerly known as Nassau Educators Federal Credit Union) added a 25-month Certificate, earning 2.75% APY. The minimum deposit is $1k, with no stated balance cap. Unlike the rest of NEFCU’s certificates, a companion IRA is not offered for the 25-month.
The 25-month Certificate’s stated APR is 2.676%, a rate that doesn’t seem like it would result in a 2.75% APY. This is not a new concern for NEFCU certificates. As DA reader, barry_NY, commented on this in response to 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.
If you do the math, using barry_NY’s formula, the 2.676% rate works out to an APY of 2.75%. Once again, thank you, barry_NY!
As stated in the Important Account Information brochure, the Early Withdrawal Penalty reads as follows:
If your account had an original maturity of one year to less than three years
at account opening or account renewal: The penalty we may impose will
equal 180 days dividends on the amount withdrawn that is subject to penalty.
There is a seven calendar day grace period before the 25-month Certificate automatically renews to a 2-year Certificate.
DA readers may remember NEFCU’s 18-month Penalty Free Certificate (1.85% APY), which was offered in February. While the 18-month Certificate has experienced a substantial rate hike to 2.30% APY, the Penalty Free feature was removed in early March.
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 and/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.
NEFCU’s Membership Eligibility page not only lists who may join, but also which portions of Long Island do not qualify for membership.
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 5.17% (excellent), based on March 31, 2018 data. In the past year, NEFCU increased its total non-brokered deposit by $288.09 million, an excellent annual growth rate of 12.15%. 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 nearly 185,000 members, with deposits in excess of $2.6 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 25-month Certificate APY currently ranks fourth.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.90% APY||24-Month Share Certificate||CommunityWide FCU|
|2.85% APY||25-Month CD||USALLIANCE Financial|
|2.80% APY||23-Month CD||Greenwood Credit Union|
|2.75% APY||25-Month Certificate||NEFCU|
The above rates are accurate as of 6/25/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.