Last week, Quorum Federal Credit Union (Quorum) raised the rates on its 11-month Term Savings Account (2.00% APY) and 25-month Term Savings Account (2.25% APY) (A Term Savings Account - TSA, a somewhat unfortunate acronym - is Quorum’s version of a CD.) Either TSA can be opened with a minimum $1k deposit. Deposits made in conjunction with a new Quorum membership cannot exceed $250k, but additional TSAs with a larger deposit can be opened once your membership is established.
According to the fine print on the Rates page,
Term Account deposits of $100,000 or more earn an additional
0.10% APY, excluding the 7, 11, and 25 month Term/IRA Accounts.
Both TSAs are also available as IRAs (Traditional and Roth) earning the same APYs, with the same funding requirements.
As stated on Quorum FCU’s Fees page, the Early Withdrawal Penalty reads as follows:
Terms of 2-11 months - Dividends earned, not to exceed 90 days.
Terms of 12-60 months - Dividends earned, not to exceed 180 days.
Quorum offers a seven-day grace period, starting on the day of maturity, and will send a notification at least 30 days before the maturity date.
Membership in Quorum Federal Credit Union is open to employees, retirees, and associates of more than 80 select companies and affiliates (SEGs). A complete listing of these SEGs is available on Quorum’s online application. Previously, these were listed on the Eligibility page, but at the moment, the link to the Eligibility results in a “404 error.”
Easy Membership - If you are not associated with any of the 80+ groups, you can qualify by joining the Select Savers Club or the American Consumer Council. 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.
Joining Quorum and/or opening either the 11-month or 24-month TSA can be done online. If you prefer a brick-and-mortar experience, Quorum has five branches located in Champaign and Deerfield, Illinois; East Hanover, New Jersey; and Purchase and New York City, New York.
Quorum belongs to a cooperative shared branch network, with more than 5,000 locations throughout the country.
Credit Union Overview
Quorum Federal Credit Union has an overall health grade of "C-" at DepositAccounts.com, with a Texas Ratio of 56.11% (below average) based on September 30, 2017 data. In the past year, Quorum’s total non-brokered deposits fell by -$61.53 million, a poor annual growth rate of -10.74%. Please refer to our financial overview of Quorum Federal Credit Union (NCUA Charter # 22769) for more details.
Chartered in 1977, Quorum Federal Credit Union has grown to be New York State’s 23rd largest credit union, with more than 84,200 members and assets in excess of $861 million. That being said, I’d like to address the “C-“ DA health grade. Quorum’s health grade has dropped from “B” to “C-“ over the past 2+ years. A Financial Times article states:
Other lenders which are dealing with rising taxi losses include Quorum Federal Credit Union, whose delinquent loans have risen from $14m to $54m in the past two years, and Van Cortlandt Cooperative Federal Credit Union, where they have jumped from $1m to $8m.
Bruno Sementilli, Quorum’s chief executive, said its taxi medallion portfolio accounted for about 8 per cent of its total assets. “We are prepared and have adequately reserved for potential losses,” he said. “We are proud to have weathered this disruption to the financial sector.”
In addition to losses from the New York City taxi medallion crisis, Quorum has been lending to Diamond Resorts International, a company that owns a network of 379 vacation destinations in 35 countries around the world. An April 2016 article from the Southern Investigative Reporting Foundation sheds some light on the relationship.
… Quorum has become a major lender to the vacation ownership interest business, i.e., the new iteration of timeshare sales, the controversial - if long-standing - vacation concept. Loans made to customers of Diamond Resorts International (NYSE:DRII) are the biggest part of this portfolio …
Southern Investigative Reporting Foundation Readers will recall our March investigation into Diamond's financial filings, revealing a picture that's entirely at odds with the growth juggernaut that management touts.
Access to the Quorum lending facility is a key component of Diamond's business model - the credit union funds loans that are eventually securitized, providing the cash it needs to keep its operations going and to maintain its investment-grade credit rating. To that end, Diamond's annual report disclosed it extended the lending agreement into 2017 and the loan facility raised to $100 million.
How the Term Saving Accounts Compare
When compared to the 204 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Quorum Federal Credit Union’s 11-month Term Savings Account APY currently ranks fourth. The 2.00% APY is quite popular, with seven institutions offering that rate.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.10% APY||1-Year CD||Live Oak Bank|
|2.05% APY||14-Month CD||INOVA Federal Credit Union|
|2.00% APY||11-Month Term Savings Account||Quorum Federal Credit Union|
When compared to the 196 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Quorum Federal Credit Union’s 24-month Term Savings Account APY currently ranks sixth, although only 10 bps separates the top 24-month CD and Quorum’s 24-month TSA.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.35% APY||24-Month PurelyCD||BankPurely|
|2.32% APY||24-Month CD||MutualOne Bank|
|2.25% APY||24-Month Term Savings Account||Quorum Federal Credit Union|
The above rates are accurate as of 2/13/2018.
To look for the best CD rates, both nationwide and in your state, please refer to our CD Rates Table page.