Neighbors Fed Credit Union Offers Competitive 48-Month CD In Louisiana
Earlier this month, Neighbors Federal Credit Union (Neighbors FCU) raised the rates on its long-term Share Certificates. Following a 22 bps rate increase, the 48-month Share Certificate currently earns a competitive 4.63% APY. (The 36-month and 60-month Share Certificates have APYs only 3 and 1 bps higher, respectively, and are not competitive.) The minimum opening deposit is $1.5k, and while there is no stated balance cap, the online application limits the opening deposit to $5k. CSR stated larger deposits can be accommodated in-branch or by phone.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 4.63% | $1.5k | - | Neighbors Federal Credit Union | 48 Month Share Certificate | |
| 4.63% | $1.5k | - | Neighbors Federal Credit Union | 48 Month IRA Certificate (Traditional, Roth, CESA) |
The Share Certificate is also available as an IRA Certificate, (Traditional, Roth, CESA), earning the same APYs with the same deposit requirements.
The Early Withdrawal Penalty is not listed on Neighbors FCU’s website, but CSR sent me a copy, which reads as follows:
For Term Share Certificates with a remaining term of 730 days or less, the early withdrawal penalty will be an amount equal to 50% of the remaining dividends that would have been paid on the amount withdrawn had the early withdrawal not occurred.
For Term Share Certificates with a remaining term greater than 730 days, the early withdrawal penalty will be an amount equal to 5% of the amount being withdrawn.
Availability
Headquartered in Baton Rouge, Louisiana, Neighbors Federal Credit Union’s field of membership (FOM) is community-based, with U.S. citizens/resident aliens who live, work, worship, or attend school in any of the so-called Louisiana “Florida” Parishes eligible to join. (In 1810, the residents rebelled against Spanish rule and established the short-lived (2 ½ months) Republic of West Florida, aka the Florida Parishes.)
Eligible Parishes: Ascension, East Baton Rouge, East Feliciana, Iberville, Livingston, Pointe Coupee, Saint Helena, West Baton Rouge, and West Feliciana.
Members of the Louisiana Wildlife Federation, the Mental Health Association of Greater Baton Rouge, or the Southern University Alumni Federation also qualify for membership.
Immediate family members of eligible individuals are also eligible to apply.
Account Opening
Joining Neighbors FCU and/or opening a Share Certificate can be done online, or at any of ten Louisiana branches located in Baton Rouge (5), Denham Springs, Port Allen, Prairieville, Walker, and Zachary.
According to the online application, “As a new member, you automatically get a Savings (Share) account!” There is no minimum opening deposit requirement for a Share Saving account, but a $100 minimum balance is required to earned the stated 0.10% APY.
Funding and Other Details
The following information is from a Live Chat with CSR.
- Funding – ACH ($5k limit), wire ($10 fee), credit/debit card ($5k limit), check, internal transfer, or Shared Branch transfer.
- Ownership – Individual or joint (online), trust (only in-branch).
- CO-OP Shared Branch Participant – Yes.
- Dividends – Compounded/credited monthly and can be deposited into a Neighbors FCU checking or savings account.
- Maturing Funds – Cashier’s check to address on file or internal transfer to a Neighbors FCU checking/savings account.
- Beneficiaries – Unlimited, percentages can be assigned, Social Security numbers are not required.
- Grace Period – 10 calendar days.
- Credit Check – Hard pull.
Credit Union Overview
Neighbors Federal Credit Union has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 10.63% (excellent) based on December 31, 2022 data. In the past year, Neighbors FCU has increased its total non-brokered deposits by $23.23 million, an above average annual growth rate of 2.4%. Please refer to our financial overview of Neighbors Federal Credit Union (NCUA Charter # 9229) for more details.
Neighbors Federal Credit Union is currently Louisiana’s second largest credit union, with more than 83,000 members and assets in excess of $1.2 billion. Originally known as Baton Rouge Teachers Federal Credit Union, the Credit Union was established in 1954 by five teachers with an initial deposit of $150 – stored in a shoe box. A committed supporter of the community, Neighbors FCU created the Neighbors Capital Area Foundation in 2018.
The mission of the Neighbors Capital Area Foundation is to create and support education-focused & community-driven initiatives in the greater Baton Rouge area. As we grow our initiatives, we seek to become an invaluable educational resource to underserved individuals and groups in our service community through scholarships, grants, and volunteer efforts.
Currently, the Foundation raises funds via NFCU’s Free Cash Back Checking account program, the Employee Payroll Donation Program, and our yearly sporting clays tournament, Clays for a Cause. These efforts fund our Neighbors Way Tuition Assistance Award, which to date has provided $145,000 in scholarships to students in the Baton Rouge area.
How the 48-Month Share Certificate 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 $10k or less, only one credit union has a higher rate than currently offered on the Neighbors Federal Credit Union 48-Month Share Certificate. The following table compares the 48-Month Share Certificate to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 5/19/2023.
To look for the best CD rates, either nationwide or in your state, please refer to our CD Rates Table page.
