I think this is the first time I’ve seen a credit union generate a hashtag to promote CDs.
We #CantStopWontStop Raising Our Savings Rates
It’s only been two weeks since New York-based Quorum Federal Credit Union (Quorum) added 50 bps to both the 13-month and 30-month Term Savings CDs (TSCD). Apparently, Quorum is serious about #CantStopWontStop: another 50 bps have been added, with the 13-month TSCF and 30-month TSCD now offering APYs of 3.50%/3.60% and 4.00%/4.10%, respectively. While the higher rate tier is not listed on the Quorum Rates page, the fine print states,
Term Account deposits of $100,000 or more earn an additional 0.10% APY.
New money is required, which is defined as “funds from an external source or funds that have been on deposit with Quorum for two weeks or less.” While deposits made in conjunction with a new Quorum membership cannot exceed $250k, additional TSCDs with a larger deposit can be opened once a membership is established.
The TSCDs are also available as IRA TSCDs (Traditional and Roth), earning the same APYs with the same deposit requirements.
24-Month Term Savings CD
The 24-month TSCD also gained 50 bps and currently earns 3.60% APY. Unlike the 13-month and 30-month TSCDs, the 24-month TSCD does not require new money, but is eligible for the extra 10 bps with a deposit of $100k or more.
As stated on Quorum's Fees Schedule page, the Early Withdrawal Penalty (EWP) reads as follows:
12-24 month Term Accounts - 2% of amount withdrawn
never to exceed original principal balance.
25 month+ Term Accounts - 3% of amount withdrawn
never to exceed original principal balance.
I wrote about the 13-month and 30-month TSCDs in January 2022 when the rates were 0.90% APY and 1.10% APY, respectively. At that time, I called the EWP harsh. I thought the EWPs had possibly been reduced since the landing page states, “Super low early withdrawal penalties.” The EWPs have remained the same, but the higher TSCD rates do make them less harsh. For example, 3% of the amount withdrawn would equal approximately 9 months of interest for the 30-month CD with a $100k deposit. This EWP is on the high side for a mid-term CD.
I'm not sure what is meant by the wording "never to exceed original principal balance." Without looking at this carefully, I had thought it would exclude the penalty from eating into the principal. As readers mentioned in the comments, this wording does not exclude the possibility. Perhaps the credit union meant to say "never to reduce original principal balance." As it is written, there is a risk that the penalty could eat into the principal if a withdrawal is made early into the term.
Dividends are compounded and credited monthly, and can be transferred to a Quorum savings account without penalty.
Funding any Quorum account can be done by ACH, through an external transfer, or through a Shared Branch transaction, all of which are described in detail in Quorum’s FAQs.
Maturing funds can be distributed by check to the address on file or transferred to a Quorum savings account. There is a seven calendar day grace period (beginning on the maturity date) before a TSCD automatically renews. (The 13-month TSCD renews as a 12-month TSCD and a 30-month TSCD renews as a 36-month TSCD.) Quorum will send a notification at least 30 days before the maturity date.
Unlimited beneficiaries can be designated with percentages assigned. Social Social numbers, DOB, and physical address must be provided for each name beneficiary.
Regarding a hard pull in the application process, Quorum specifically states in this FAQ, that no hard pull is done. Only a soft pull is done:
When Quorum reviews a checking or savings account application, we may perform a soft pull on an applicant’s credit report through one of the three major credit reporting agencies (TransUnion, Experian, Equifax) for verification purposes, and also run the name through ChexSystems to see if there is a report in their system. Neither of these actions will impact an applicant's credit score in any way.
Headquartered in Purchase (Westchester County), New York, Quorum Federal Credit Union’s field of membership (FOM) is open to employees, retirees, and associates of more than 65 select companies and affiliates (SEGs), including Kraft Heinz Company, Mastercard, and Avon. A complete list of these SEGs can be found on the Membership Eligibility page.
Family members of an employee/retiree of any of the SEGs are also eligible to join Quorum. “Family members” are defined as parent/stepparent, child/stepchild, sibling/stepsibling, grandparent/grandchild, spouse/domestic partner, and housemate.
Easy Membership - If you are not associated with any of the 65+ groups, you can qualify by joining the Select Savers Club ($5 lifetime fee paid by Quorum) or the American Consumer Council. According to CSR, the "I would like to join through the following association" option (located in the Eligibility section of Quorum’s online application) allows the applicant to join either association and Quorum simultaneously.
While previously having branch locations in Illinois, New Jersey, and New York, Quorum now describes itself as “an online credit union.” Joining Quorum and/or opening a 13-month or 30-month TSCD can only be done online.
Use our easy, online application to become a Quorum member and open an account with us. During the application process, you can choose to open any savings product(s) you like.
The online application takes less than 5 minutes to complete! Once you submit your application, it may take between 24-48 hours to establish your account.
Current members can open a new TSCD using Quorum’s online banking platform.
Click on “Open Savings and Checking Accounts” in the main menu. Select the product(s) you wish to open, the follow the prompts to complete the application. Once you submit your application, the status will be presented on the screen.
Establishing a Quorum membership requires a $5 minimum deposit in a Basic Savings account, which is opened automatically and funded by Quorum when your application is approved.
Quorum participates in both the CO-OP Shared Branch network and the ATM network.
We participate in Shared Branching and ATM networking to allow you hands-on, in-person access to your Quorum accounts. View our nationwide network of over 90,000+ FREE ATMs and 5,000 Shared Service Centers.
Credit Union Overview
Quorum Federal Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 15.55% (above average) based on June 30, 2022 data. In the past year, Quorum increased its total non-brokered deposits by $60.99 million, an excellent annual growth rate of 7.03%. Please refer to our financial overview of Quorum Federal Credit Union (NCUA Charter # 22769) for more details.
Founded in 1934 as the Kraft Foods Federal Credit Union, Quorum Federal Credit Union has grown to be New York State’s 22nd largest credit union, with more than 67,000 members and assets in excess of $1.1 billion. According to a March 2022 CUTimes.com article, Quorum was one of the 10 largest sellers of non-real estate loan participations in 2021.
These 10 credit unions had returns on average assets of 1.51% in 2021, compared with 1.07% for all credit unions.
#7. Quorum Federal Credit Union, Purchase, N.Y. ($1 billion assets, 66,084 members) sold $476.2 million in loans in 2021, up 60% from the $298.5 million in 2020.
How the 30-Month Term Savings CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, no banks or credit unions have a higher rate than currently offered on the Quorum Federal Credit Union 30-Month Term Savings CD, regardless of minimum deposit requirements. The following table compares the 30-Month Term Savings CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
How the 13-month Term Savings CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, no banks or credit unions have a higher rate than currently offered on the Quorum Federal Credit Union 13-Month Term Savings CD, regardless of minimum deposit requirements. The following table compares the 13-Month Term Savings CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
How the 24-Month Term Savings CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationwide and have minimum deposit requirements of $10k or less, only one bank has a higher rate than currently offered on the Quorum Federal Credit Union 24-Month Term Savings CD. The following table compares the 24-month Term Savings CD to the two highest-rate CDs from other credit union and the two highest-rate CDs from banks.
The above information and rates are accurate as of 9/24/2022.
To look for the best CD rates, either nationwide or in your state, please refer to our CD Rates Table page.