Every so often, what I think will be a good subject for a blog post disappoints me; that’s what happened as I was writing last night. Without going into too much detail, this morning’s blog post about REALTORS® Federal Credit Union’s 1-year CD has instead become a blog post about Northwest Federal Credit Union's (NWFCU) 1-year Share Certificate. While this might seem like a complete non sequitur, it actually makes sense: for the past four years, REALTORS® FCU has been operating as a division of NWFCU, with many of the same products and rates, but under its own brand and restricted field of membership.
So let’s talk about NWFCU’s 1-year Share Certificate. About a week ago, the rates on the 1-year Share Certificate were raised for the first time since April 2015: 1.41% APY, $250k+; 1.31% APY, $100k+; 1.21% APY, $1k+.It's also available as an IRA (Traditional, Roth, CESA, and SEP) earning the same tiered APYs, with the same funding requirements.
|1.41*%||$250k||-||Northwest Federal Credit Union||1 Year Share Certificate|
|1.41*%||$250k||-||Northwest Federal Credit Union||1 Year IRA Certificate (Traditional, Roth, CESA, SEP)|
Good rates, but what really makes this something to write about is that the rate can be increased by having a Premier Checking account or belonging to the Heritage Club (free and automatic enrollment upon age 62).
For amounts of $50,000 - $99,999, a bonus of 10 basis points will be added to the rate in effect at the time of purchase.
For amounts of $100,000 or greater, 25 basis points will be added to the rate in effect at the time of purchase.
Please note that there is one bonus allowed per Certificate purchase.
This could potentially result in three different rates for the 1-year Share Certificate:
- 1.66% APY for deposits of $250k+
- 1.56% APY for deposits of $100k+
- 1.31% 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 greater than six (6) months and less than two (2) years,
the penalty will be equal to the lesser of 180 days of dividends on the amount withdrawn
or all dividends on the amount withdrawn since the date of issuance or renewal.
Headquartered in Herndon, Virginia, Northwest Federal Credit Union offers membership to virtually anyone in the U.S., with a variety of ways to qualify:
Easy Membership: Joining the non-profit Financial Awareness Network (FAN) ($10 membership dues) qualifies for NWFCU membership eligibility.
Organizations: Members of 25 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 1-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 the 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 4.29% (excellent) based on September 30, 2016 data. In the past year, NWFCU has increased its total deposits by $273.49 million, an excellent annual growth rate of 11.59%. 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 fourth largest credit union, with more than 219,600 members and assets in excess of $3.1 billion. 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 $957,000 in scholarships to 232 recipients.
How the Share Certificate Compares
When compared to the 203 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, Northwest Federal Credit Union's 1-Year Share Certificate APY (with Heritage Club or Premier Checking bonus rate of 0.25%) currently ranks first, regardless of minimum deposit.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|1.66% APY||1-Year Share Certificate ($250k min w/bonus)||Northwest Federal Credit Union|
|1.41% APY||1-Year Share Certificate ($250k min no bonus)||Northwest Federal Credit Union|
|1.36% APY||1-Year Money Market Certificate ($1k min)||PenFed Credit Union|
|1.35% APY||Jumbo 12-Month CD ($100k min)||State Bank of Texas|
The above rates are accurate as of 12/28/2016.