For more than a year, Northwest Federal Credit Union (NWFCU) has been offering a 5-year Share Certificate that earns 2.22% APY on deposits of $250k+. The minimum opening deposit is $1k (deposits below $250k earn 2.02% APY), with no balance cap. The 5-year Share Certificate is also available as an IRA (Traditional, Roth, CESA, and SEP) earning the same APY, with the same funding requirements.
|2.22*%||$250k||-||Northwest Federal Credit Union||5 Year Share Certificate|
|2.22*%||$250k||-||Northwest Federal Credit Union||5 Year IRA Certificate (Traditional, Roth, CESA, SEP)|
On its face, it’s not a great deal, but as DA readers, Kennewickman and me1004, pointed out in a Forum post, the rate can be increased by having a Premier Checking account or belonging to the Heritage Club (free and automatic enrollment upon age 62).
Bonus rate increase of .25 is available on certificates of at least $100,000 and with terms of 1 year or longer;
Bonus rate increase of .10 is available on certificates from $50,000 to $99,999.99 and with terms of 1 year or longer.
This could potentially result in three different rates for the 5-year Share Certificate:
- 2.47% APY for deposits of $250k+
- 2.27% APY for deposits of $100k+
- 2.12% APY for deposits of $50k+
As stated on Northwest FCU’s Certificate Disclosure page, the Early Withdrawal Penalty reads as follows:
For Certificates having a term equal to or greater than two (2) years the penalty
will be equal to the lesser of 366 days of dividends on the amount withdrawn or
all dividends on the amount withdrawn since the date of issuance or renewal.
Thank you to Kennewickman and me1004 for their Forum post about NWFCU’s bonus rates.
Headquartered in Herndon, Virginia, Northwest Federal Credit Union offers membership to virtually anyone in the U.S., with a variety ways to qualify:
Easy Membership: Joining the non-profit Financial Awareness Network (FAN) ($10 membership dues) qualifies for NWFCU membership eligibility.
Organizations: Members of 18 Partner Organizations also qualify for membership.
Government Employment: Employees of specific U.S. Government Agencies, including Homeland Security and CIA, are eligible to join.
Member Companies: Employees of more than 420 Member Companies also qualify.
Relationship: Family members (defined as spouse, children, siblings, parents, grandparents and grandchildren, including adopted family members) and household members (defined as persons living in the same residence who share living expenses) of any of the above groups are eligible for membership.
Joining NWFCU and/or opening a 5-year Share Certificate can be done online, or at any of seven Virginia branches located in Chantilly, Gainesville, Herndon (2), Leesburg, Manassas, and Vienna. You can also download a membership application and submit it through the mail.
Credit Union Overview
Northwest Federal Credit Union (NCUA Certificate # 5500) has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.66% (excellent) based on March 31, 2016 data. In the past year, NWFCU has increased its total deposits by $215.85 Million, an excellent annual growth rate of 9.31%. Please refer to our financial overview of Northwest Federal Credit Union for more details.
Established in 1947, Northwest Federal Credit Union is currently Virginia’s 3rd largest credit union and the 52nd largest credit union in the nation. NWFCU’s philosophy of "people helping people" has been put into action through the NWFCU Foundation, which recognizes students who demonstrate leadership, dedication and commitment in school, at home and in the community, by awarding college scholarships. Since 2005, the Foundation has awarded a total of $877,000 in scholarships to 216 recipients.
How the Share Certificate Compares
When compared to the 120 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, Northwest Federal Credit Union's 5-Year Share Certificate APY (with Heritage Club or Premier Checking bonus rate of 0.25%) currently rates first, regardless of minimum deposit.
The above rates are accurate as of 6/14/2016.