Texas-based Security Service Federal Credit Union (Security Service) has boosted the tiered rates on its 30-month CD: 4.00% APY ($50k), 3.95% APY ($25k), and 3.90% ($500). Following the addition of 125 bps, the 30-month CD APYs are the highest since DA began tracking them in 2017.
The 30-month CD is also available as an IRA CD (Traditional, Roth, and CESA) earning the same tiered APYs, with the same funding requirements.
As stated in the Security Service Truth In Savings (TIS) disclosure, the Early Withdrawal Penalty reads as follow:
Penalty amount will be calculated on the certificates current balance at the time of withdrawal.
If your account has an original maturity of greater than one year, but less than five years: We may impose an early withdrawal penalty equal to the amount of dividends earned, not to exceed 180 days of dividends. In the event that the Certificate has earned less than 60 days of dividends, a penalty equal to 60 days dividends will be assessed to the account.
If an early withdrawal penalty is imposed, the penalty may be imposed regardless of whether dividends which equal the amount of the penalty have been earned at the time of withdrawal. To the extent that dividends in the Certificate account at the time of withdrawal are insufficient to pay the entire penalty assessed, the penalty will be assessed against principal.
Funding and Maturing Funds
According to CSR, a CD can be funded through ACH, wire transfer ($15 fee), by check, or through an internal transfer. Security Service participates in the CO-OP Share Branch network, facilitating the transfer of funds.
Maturing funds will be distributed by cashier’s check to the address on file, by wire, or transferred to a Security Service savings account.
There is a 7-day grace period before a CD renews, although Security Service “reserves the right to decline a Certificate renewal.”
The TIS disclosure states,
You can only withdraw dividends credited in the term before maturity of that term without penalty. You can withdraw dividends any time during the term of crediting after they are credited to your account.
Unlimited beneficiaries (equal shares) can be designated and Social Security numbers are required for all named beneficiaries.
Headquartered in San Antonio, Security Service Federal Credit Union’s field of membership (FOM) has expanded considerably since my last blog post some seven years ago, when only portions of three states (Colorado, Texas, Utah) qualified.
Residents of Arizona, Arkansas, Colorado, Kansas, Louisiana, Nebraska, New Mexico, Oklahoma, Texas, Utah, and Wyoming are all eligible for membership.
Other ways to qualify for membership include having an auto loan with Security Service, being an immediate family member of a Security Service member, or being a Security Service employee or board member.
Every member must open and maintain a share account (either a Security Service Basic Savings Account or a Youth Savings Account) with a $5 balance in order to join Security Service Federal Credit Union.
Security Service participates in the CO-OP Shared Branch network and ATM network.
Make free, basic transactions at thousands of credit union locations nationwide, including withdrawals, transfers, loan payments, and more.
With money at nearly 30,000 CO-OP free ATMs nationwide including participating credit unions, 7-Eleven®, Costco®, and Walgreens.
Credit Union Overview
Security Service Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.31% (excellent), based on June 30, 2022 data. In the past year, Security Service has increased its total non-brokered deposits by $549.51 million, an excellent annual growth rate of 6.22%. Please refer to our financial overview of Security Service Federal Credit Union (NCUA Charter # 11065) for more details.
Security Service Federal Credit Union was established in 1956 for the benefit of the members of the U.S. Airforce Security Service Command. The Credit Union opened its doors with eight members and $25 in assets – a far cry from today’s membership of more than 794,000 and assets in excess of $12.4 billion.
How the 30-Month Certificate Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available with the FOM and have minimum deposit requirements of $50k or less, two credit unions have higher rates than currently offered on the Security Service Federal Credit Union 30-month Certificate. The following table compares the 30-month Certificate to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 10/10/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.