The following was originally posted on 11/5/19.
I don’t have anything new to report on PSECU, but I thought a quick mention of PSECU’s CD Specials would be useful. I will mention them again later today when I publish the CD summary. As I was starting on the summary, I realized that the two PSECU CD rates are now way above the CD rates of other credit unions and banks. For anyone looking for mid-term CDs, these are excellent deals in today’s interest rate environment.
|0.95%||$500||-||Pennsylvania State Employees Credit Union||60 Month CD|
|0.70%||$500||-||Pennsylvania State Employees Credit Union||36 Month CD|
|0.60%||$500||-||Pennsylvania State Employees Credit Union||24 Month CD|
PSECU’s 24-month CD earns 3.00% APY. The next highest 24-month CD rate that’s nationally available is only 2.50% APY (at Home Loan Investment Bank). PSECU’s 36-month CD is even better at 3.25% APY. The next best 36-month CD rate is only 2.70% APY (at Dow Chemical Employees' Credit Union). Even PSECU’s 60-month CD is worth noting. It has a 3.00% APY which is now the only nationally available 5-year CD with a 3% APY.
Besides the high rates, PSECU’s CDs have a mild early withdrawal penalty (EWP). Here’s how the EWP is described in PSECU’s Certificates page:
If you withdraw money early from a 3 to 24 month certificate, you’ll lose 90 days’ worth of earnings on the principal amount you withdraw, whether or not the certificate has earned an initial dividend. If you withdraw money early from a 36 to 60 month certificate, you’ll lose 180 days’ worth of earnings on the withdrawn principal amount, whether or not the certificate has earned an initial dividend. Penalties are deducted from the certificate value and calculated at the certificate’s annual dividend rate.
This makes PSECU’s 24-month CD an especially good deal. Even if you close the CD early after one year, your net yield after the penalty would be 2.25%. That equals or surpasses the highest 1-year CD rates from most online banks. You can review the effective yields of PSECU’s CDs when closed early by using our CD Early Withdrawal Calculator.
PSECU’s CDs have an add-on deposit option, but it has several limitations. I have details of this feature in my October 26 blog post.
As I mentioned in my October 26th post on these PSECU’s CDs, I was told by PSECU that they intend to offer these specials through November. Of course, there’s no guarantee. The small print does say “Rates and information are subject to change at any time.” If the demand for these CDs is high enough, they may end these specials early. Fortunately, PSECU is a large credit union. It’s the 32nd largest credit union in the nation with assets in excess of $5.5 billion and deposits of almost $5 billion. That should reduce the odds that they will be forced to end the special rates early.
Also as I mentioned in my October 26th post, I was told by PSECU that their field of membership (FOM) now extends across the country. In the past I’ve been told that the FOM was limited to Pennsylvania residents. Hopefully, this nationwide FOM will continue. For details about how to qualify for membership, please refer to my October 26th post.