6.00% APY 11-Month CD Available at Securityplus Federal Credit Union - Expired
Maryland-based Securityplus Federal Credit Union (Securityplus) has unveiled an 11-month Promotion Certificate earning 6.00% APY. Described as “the ultimate parking space for your tax refund,” this limited-time offer requires a $1k minimum deposit of new money (funds not currently on deposit at Securityplus). According to the fine print on the landing page, the maximum deposit is $50k, and there is a limit of one Promotion Certificate per member.
The 11-month Promotion Certificate is also available as an IRA Promotion Certificate (Traditional and Roth), earning the same APY. As stated in the landing page fine print,
IRA certificates are subject to IRS contribution limits.
As stated in the Member Service Agreement (page 23), the Early Withdrawal Penalty reads as follows:
The member will forfeit an amount equal to ninety (90) days dividends at the rate paid or payable for the preceding ninety (90) days on the amount withdrawn before maturity or authorized withdrawal date whether earned or not (this may reduce the principal).
Competitive 23-Month Promotion Certificate Continues
I first reviewed the Securityplus 23-month Promotion Certificate last October. It's still available with the same 4.85% APY. Unlike this 11-month Promotion, the 23-month Promotion has no maximum deposit. Also unlike the 11-month Promotion, the fine print for the 23-month Promotion only gives the option to open the CD at a branch. For more details, please refer to my October review of the 23-month Certificate Promotion.
Headquartered in Baltimore, Maryland, Securityplus Federal Credit Union’s field of membership (FOM) provides a way to join for almost any U.S. citizen/resident alien (18 years of older) with a valid Social Security number.
Easy Membership Requirement: Members of the American Consumer Council (ACC) are eligible for Securityplus membership, regardless of residency status.
In a November review of Securityplus, a reader reported difficulties in obtaining an ACC certificate that Securityplus required as proof of ACC membership. According to the reader, the “membership requirements are unreasonably rigorous and very time consuming.”
Residency: Individuals who live, work, worship, or attend school in Baltimore City qualify for membership.
Employment: Employees/retirees of more than 100 Select Employee Groups (including the Centers for Medicare & Medicaid Services, Food & Drug Administration, and Social Security Administration) are also eligible for membership.
Relationship: Family member or household members of current Securityplus are welcome to apply.
Joining Securityplus Federal Credit Union can be done online, by phone (410-281-6200 or 1-866-4SECPLUS), or at any of six Maryland branches located in Baltimore (5) and Owings Mill. Note: three Baltimore branch locations (6401 Security Blvd, 7500 Security Blvd, and 1500 Woodlawn Drive) have restricted access.
A Primary Savings Account with a minimum $5 deposit establishes a Securityplus membership.
In October, Securityplus offered a competitive 23-month Promotion Certificate. At that time, there was a fair amount of confusion whether it could be opened over the phone or not, as there is no online opening. The following is based on information available on the Securityplus website and a conversation with CSR.
As stated in the fine print on the landing page,
The 11-month share certificate or IRA share certificate must be opened at a Securityplus Federal Credit Union branch location or by calling 410-281-6200.
Yesterday afternoon, CSR confirmed the 11-month Promotion Certificate can be opened in-branch or by phone. Normally that would be the end of subject, but the same information supposedly applied to October’s 23-month Promotion Certificate. Long story short, DA reader forwarded an email from Securityplus after he submitted an online application (emphasis is mine).
Thank you for your interest in membership with Securityplus Federal Credit Union. Unfortunately, if and when your application is approved you would not be able to open the share certificate over the phone.
Here’s hoping what is in print and what I was told is true. If you try to join and open this CD, please share your experiences in the comments.
Funding and Other Details
- Funding – ACH, wire ($15 fee), or shared branch transfer. Funds must be on deposit before opening a Promotion Certificate.
- CO-OP Shared Branch – Yes.
- Maturing Funds – By check to address on file or internal transfer to savings account.
- Grace Period – 10 days before automatic renewal as standard 12-month Certificate.
- Beneficiaries – Unlimited, equal shares, Social Security number required.
- Dividends – Compounded/credited monthly, can be withdrawn or transferred to a Securityplus savings account.
- Credit Check – Soft pull.
Credit Union Overview
Securityplus Federal Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 6.71% (excellent) based on September 30, 2022 data. In the past year, Securityplus has increased its total non-brokered deposits by $19.75 million, an excellent annual growth rate of 4.57%. Please refer to our financial overview of Securityplus Federal Credit Union (NCUA Charter # 2769) for more details.
Chartered in 1938, Securityplus Federal Credit Union’s original FOM was exclusive to Social Security Administration employees. Securityplus is currently the 16th largest credit union headquartered in Maryland, with nearly 34,000 members and assets in excess of $537 million.
How the 11-Month Promotion Certificate Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, no bank or credit union has a higher rate than currently offered on the Securityplus Federal Credit Union 11-Month Promotion Certificate. The following table compares the 11-Month Promotion 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 2/18/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.
Read the fine print. Ask about the EWP, compounding process, online presence/technology, and do a test call....if you have to wait on hold for 20 min to GIVE your money to them, how long do you think it will take to TAKE your money back when the CD matures.
It's great once again to see a 6% APY CD, without involvement of some fintech or other San Francisco player. Do not want to make too much of this particular offering. It's only a start. But 5% APY has now become the absolute minimum CD APY acceptable, with a preference for dry powder over any APY lower.
As for me personally, I'm hanging onto some dry powder even in the face of very decent 5% APY CD offerings. After all, dry powder itself today is providing rather respectable yields as we move down the road to still more 5+%, and now even 6%, certificates of deposit.
American Consumer Council
They might say you have to join through their source. Easy?
Membership enrollment elsewhere might not qualify.
So now there's a zillion people calling them to find out whether a branch visit is required to open a promotional CD. I called and requested a call back because I was position 11 in the queue on a Saturday morning. I don't want to bother applying for membership unless I can open a promotional CD over the phone. I also sent them an email because I'd like to have an answer in writing.
If I hear anything I'll post the answer here.
Which is a better chance a slim chance or a fat chance?
Negative returns don't get my investor juices flowing.
$50k @ 1% more than a 5% 11 month CD
It is a close approximation of course because it depends on the relative compounding periods of this CD versus the comparison base CD. But any difference due to compounding is trivial.
According to it and the numbers provided by the company, it appears that the interest compounds quarterly. Not sure I like that. Has anyone verified that?
Unfortunately, SecurityFirst has incorrectly promoted this CD with a 6.00% APY when in fact, the rate of 5.87% (as shown on their website) would bring you to an annual yield of 6.03%.
It appears they're considering the 6.00% as a TOTAL yield ...or in this case, just for the 11 months. This would correspond to an equivalent monthly APR of 5.87.
Idiotic, I know, ..but technically with this rate, the yield of 6.00% they're promoting would become 6.03% if the CD actually carried out through a full 12 month period.
And the Lord said... Let the FFR rise! A plague upon the stock market speculators!
Also, a lot fo the negative comments here, the comments are already addressed in the story, people are showing they haven't even rad the story.
The only issues with this are whether they will really do as they say, start the CD over the phone. Second is that the maximum is $50,000, which does cut into how much benefit you can get with this rate. (Of course, if you don't have more than $50,000, that doesn't matter.)
all it pays is 11/12 of 6% and that is 5.5% return or $5.51 on $100 deposited
But, please, check me out...
it says Calculated Daily, Compounded Monthly, Advertised rates are Rounded to the nearest one-hundredth of one percentage point.
Advertised rates are Dividend - 5.87%... APY*- 6%!
Would Effective APY have to be 6.03%?
$50K for 11 months - not worthy another ChexS inquiry.
Got a hold of the Woodlawn branch on the phone just now...
you can definitely open this CD by phone (with member services)
if you qualify for membership.
Problem is..when you call 410-281-6200...the automated voice says:
'Thank you for choosing SecurityPlus'...then it hangs up on you.
hopefully, that's only 'cause they haven't opened yet this morning.
I know that Securityplus used to be called FIAFE FCU.
Was expecting the process to be much tougher and time consuming, but to my surprise it was not bad at all, just a two day wait.
It certainly is not available to new members via online application.