Self-Help FCU's Money Market Rate Jumps Up

POSTED ON MONDAY, JUNE 5, 2017 BY Ken Tumin

UPDATE 3/6/2018: Money Market now longer has rate tiers. Minimum balance required to earn the state APY is $500.

Deal Summary: Money Market, 1.41% APY ($500k min), 1.31% APY ($500 min)

Availability: Easy membership requirement

It was just two months ago that Self-Help Federal Credit Union (Self-Help FCU) added 5 basis points (bps) to its Money Market account (MMA), making its APY the highest nationally available rate for a money market account. Self-Help FCU started the month by increasing the rate by another 5 bps, widening the gap between its MMA’s APY and the next highest APY by 11 bps.

The MMA has two rate tiers: 1.41% APY for balances of $500k+, and 1.31% APY for balances of $500+. The minimum opening deposit is $500.

APY	MIN	MAX	INSTITUTION	PRODUCT	DETAILS
3.32%	$500	-	Self-Help Federal Credit Union	Money Market

Rates as of November 28, 2023.

In the past year, the Money Market account has experienced twelve rate increases, which have added a total of 62 bps to the APY.

There is no monthly service fee if a minimum daily balance of $500 is maintained; should the balance fall below $500, a $5 monthly service fee will be levied. There is a $10 fee for each additional transfer or withdrawal beyond the first six transfers/withdrawals.

Thanks to DA reader, Carpline, for his Forum post about this latest rate increase.

Note: DA reader, Bozo, posted a comment in response that piqued my interest.

Curious about the fine print. Is the rate on amounts from zero to $500,000 1.31%, and the rate on amounts above $500,000 1.41%? Or, if one has a balance above $500,000, does the entire balance yield 1.41%?

The fine print in question - “Dividends earned on all average daily balances of $500+” - is worded vaguely and open to interpretation. CSR stated that a balance of $500,001 would earn 1.41% APY on the entire balance, and not 1.31% APY on $499,999 and 1.41% APY on $2.

Availability

Headquartered in Durham, North Carolina, Self-Help Federal Credit Union’s field of membership (FOM) includes virtually all residents of the U.S., with the exception of North Carolina residents, who can join Self-Help FCU’s older sister credit union, the Self-Help Credit Union.

Easy Membership: For a one-time fee of $5, individuals can qualifying for membership by joining the Center for Community Self-Help, the umbrella organization that encompasses all parts of Self-Help.

Residency: Individuals who live, work, worship, or attend school select areas of Oakland, California are eligible to join.

Employment: Employees of over 100 SEGs also qualify for membership.

Self-Help FCU has a 26-page document that describes the various ways California residents can qualify for membership, including many residential, employment, and organizational affiliation options.

Joining Self-Help FCU and opening a Money Market account can be done at any of 24 full-service branches located in California (19), Florida (2) and Illinois (3).

Note: North Carolina residents are eligible to join Self-Help FCU's sister credit union, Self-Help Credit Union, which has 19 branches throughout North Carolina and one Virginia branch. Self-Help Credit Union offers the same products and rates as Self-Help FCU, including the tiered Money Market.

The Membership Application can also be download and returned to any branch location or mailed to the Modesto, California branch.

If you are not eligible for free membership, please include a
one-time $5 fee to join the Center for Community Self-Help.

Credit Union Overview

Self-Help Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 3.50% (excellent) based on March 31, 2017 data. In the past year, Self-Help FCU has increased its total non-brokered deposits by $84.47 million, an excellent growth rate of 16.51%. Please refer to our financial overview of Self-Help Federal Credit Union (NCUA Charter # 24802) for more details.

Self-Help Federal Credit Union was established in 2008 “to build a network of credit union branches to operate on a scale uncommon in the community development industry.” Its sister credit union, Self-Help Credit Union was chartered in 1938 to help employees in rural North Carolina form worker-owned cooperatives and gain ownership of local mills that were being shut down. The first capital raised was $77 – the proceeds of a bake sale organized by a baker whom Self-Help CU has assisted. The first "office" was co-founder Martin Eakes’ VW Bug, which unfortunately caught fire; both the car and Self-Help CU’s records were a complete loss. Self-Help CU and Self-Help FCU are North Carolina’s 6th and 8th largest credit unions respectively, with a combined membership of over 260,000.

How the Money Market Account Compares

When compared to the Money Market Accounts tracked by DepositAccounts.com that are available nationwide, Self-Help Federal Credit Union's Money Market Account two APYs currently rank first and third, regardless of minimum deposit.

The above rates are accurate as of 6/5/2017.

To search for Money Market rates, both nationwide and state specific, please refer to the Money Market rates section of DepositAccounts.com.

Comments

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7 Comments.

details | Jun 5, 2017 | Comment #1

In my experience it seems that the high vs low rate is determined on a daily basis and the same rate applies to the entire balance that day. It's only the NC Self-Help that accepts online applications, and although that Self-Help is intended for NC residents I don't think there's a strict requirement that you have to be a NC resident (some people are members of both for NCUA reasons). So people who don't live near any location of either Self-Help and want the convenience of online application may just want to use the NC Self-Help.

DCGuy | Jun 5, 2017 | Comment #2

One difference between the state and federally chartered credit union that I found is that for the federally chartered one, there is a monthly $3 fee for online account access if you do not accept e-statements. It is one of the rare examples of charging for online account access.

DCGuy | Jul 3, 2017 | Comment #3

Over the July 1 weekend, the rate was dropped to 1.26% for balances less than $500K and 1.36% for balances at least $500K for both the state chartered and Federal chartered credit unions. The target base is the upstart small businesses so the borrowing and deposit rates will fluctuate.

DCGuy | Jul 3, 2017 | Comment #4

Here Is the schedule of fees between the two credit unions. There are several differences, so always read the fine print.

https://www.self-help.org/docs/default-source/PDFs/schedule-of-fees.pdf?sfvrsn=2
https://www.self-helpfcu.org/fees
https://www.self-helpfcu.org/docs/default-source/default-document-library/english-fee-schedule-nov-21-16.pdf?sfvrsn=0

dlweiss0622 | Sep 6, 2017 | Comment #5

Note that SHCU does not allow online initiation of ACH transfers (either to or from the MM account). A form must be signed and notarized, then fax'd to the CU.

DCGuy | Sep 6, 2017 | Comment #6

Their MM rate went up to 1.27/1.37% on September 1. Their online banking does not have the option to link external accounts to your Self Help account. You can link the Self Help account to other bank's external account and the ACH transfer from the other bank which I did successfully.

DCGuy | Sep 6, 2017 | Comment #7

Self Help CU also sent a new schedule of fees statement effective on October 1. The bill payment option no longer requires either two of the following: Direct deposit of $100 per month, paperless statements, debit card. After October 1, it is free or the first 20 bill payments and $1 for each beyond that amount.