As DA reader, rockies, noted in a recent Forum post, Texas-based Security Service Federal Credit Union (Security Service) is currently offering competitive rates on its 15-month Certificate: 5.00% APY ($50k), 4.95% APY ($25k), and 4.90% ($500). In the last twelve months, the 15-month Certificate has gained a total of 390 bps in series of six rate increases.
Security Service is also offering noteworthy rates on its 7-month and 30-month Certificates. These rates aren't quite as competitive as the 15-month rates.
These Certificates are also available as IRA Certificates (Traditional, Roth, and CESA) earning the same tiered APYs, with the same funding requirements.
Thanks to rockies for his many DA Forum posts (242 and counting), including this week’s Security Service Forum post.
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.
In other words, the principal may be reduced if a withdrawal is made within 60 days of account opening.
Note: While not specified in the TIS, CSR stated that partial withdrawals are not allowed.
Headquartered in San Antonio, Security Service Federal Credit Union’s field of membership (FOM) has expanded considerably in the past seven years, when only portions of three states (Colorado, Texas, Utah) were included. The current FOM makes residents of Arizona, Arkansas, Colorado, Kansas, Louisiana, Nebraska, New Mexico, Oklahoma, Texas, Utah, and Wyoming 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.
Note: The membership eligibility information on the Ways to Join page does not match what is listed on the first page of the online membership application. CSR confirmed the membership application has the correct information.
Joining Security Service and/or opening a Certificate can be done online, by phone (866-227-0194), or in person at any of the 68 branches located in Colorado (17), Texas (38), and Utah (13). Appointments (virtual appointment, phone call, or in person) are available and can be scheduled online.
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.
CD Funding and Other Details
The following information is from a conversation with a helpful CSR.
- Funding – ACH, wire ($15 fee), check, internal transfer, or Shared Branch transfer.
- CO-OP Shared Branch Participant – Yes.
- Dividends – Compounded/credited monthly. Credited dividends may be withdrawn at any time during the term penalty-free, but that option must be established at account opening.
- Maturing Funds – Wire ($15 fee), cashier’s check to address on file, or internal transfer to a Security Service Savings Account.
- Beneficiaries – Unlimited, equal shares, Social Security numbers are required.
- Grace Period –7 calendar days but Security Service “reserves the right to decline a Certificate renewal.”
- Credit Check – Soft pull.
Credit Union Overview
Security Service Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.29% (excellent), based on September 30, 2022 data. In the past year, Security Service has increased its total non-brokered deposits by $840.34 million, an excellent annual growth rate of 9.43%. 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 796,000 and assets in excess of $12.6 billion.
How the 15-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, no banks or credit unions have higher rates than currently offered on the Security Service Federal Credit Union 15-month Certificate. The following table compares the 15-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 2/17/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.