In April, Signal Financial Federal Credit Union (Signal Financial) offered promotional rates on many of its Share Certificates, which ended at the beginning of May. This week, Signal Financial raised the rates on its 24-month Bump-Up Share Certificate (1.80% APY) and 60-month Share Certificate (2.40% APY). Interestingly, these new rates are higher than April’s promotional rates.
The minimum opening deposit for either Share Certificate is $500, with no stated balance cap. While the 24-month requires funds “from an external source,” the 60-month does not.
The 24-month Share Certificate has two additional features that increase its intrinsic value: a Bump-Up option and an additional deposit option. The fine print on the Rates and Disclosure page states,
You may “‘bump-up’” your dividend rate once to the current market rate during the term of your certificate; by doing so, the term and maturity of the certificate will not change.
You also have the option of depositing money to your certificate once during the term. Deposit funds must be brought from an external source.
You may exercise each of these options once during each term of a certificate. You may exercise one or both of these options; if exercising both, they may be done at the same time, or at different times, during the term.
As stated in the Truth in Savings document, the Early Withdrawal Penalty reads as follows:
Terms of longer than 12 Months - 182 days’ dividends
The combination of the mild EWP and a competitive rate on the 60-month Share Certificate earned a place for several effective yields in this week’s CD Rates Summary, including,
DA’s Early Withdrawal Penalty Calculator breaks down the effective yields from Month 1 through Month 59.
Headquartered in Kensington, Maryland, Signal Financial Federal Credit Union’s field of membership (FOM) offers a means to membership for virtually everyone:
Easy Membership: Membership in the Washington Area Bicyclist Association (WABA) qualifies for Signal Financial membership. (Joining WABA prior to applying for Signal Financial membership is required.)
Residency: Individuals who live, work, worship, or attend school in Washington, D.C., or inside the Beltway in Prince George’s County (Maryland) are eligible to join.
Select Employee Groups: Any employee, pensioner, annuitant, or member of the 200+ Select Employee Groups (including Verizon, Verizon Wireless, and AT&T) is eligible.
Relationship: Family members related by blood, marriage, or other recognized family relationship in the same household (living under the same roof or not) of any current Signal Financial member are eligible.
Joining Signal Financial and/or opening a Share Certificate can be done online or at any of seven branches* located in Washington, D.C. (3), Northern Virginia, and Maryland (3), or by mail (all necessary paperwork can be requested by calling 301.933.9100, ext. 298).
*Note: The Silver Spring (MD) and Ashburn (VA) branches have restricted access, with only current Verizon employees with ID permitted to enter.
Credit Union Overview
Signal Financial Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.98% (excellent) based on March 31, 2017 data. In the past year, Signal Financial has increased its total non-brokered deposits by $8.85 million, an excellent annual growth rate of 3.02%. Please refer to our financial overview of Signal Financial Federal Credit Union (NCUA Charter # 5571) for more details.
In September 1947, the Washington Telephone Federal Credit Union (WTFCU) was granted a charter, for the purpose of benefiting the telephone company’s employees. In the past 70 years, the types of financial services offered changed, and the number of branch offices grew to keep pace with the ever-changing financial needs of the membership. In 2007, WTFCU became the Signal Financial Federal Credit Union during a FOM expansion that included more than 150 small to medium-sized business, in addition to the large telephone company groups. Signal Financial is currently the 19th largest credit union headquartered in Maryland, with nearly 22,600 members and assets in excess of $370 million.
How the Share Certificates Compare
When compared to the 179 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationally, Signal Financial Federal Credit Union's 60-month Share Certificate APY currently ranks fourth.
When compared to the 194 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationally, Signal Financial Federal Credit Union's 24-month Bump-Up Share Certificate APY (promo rate) currently ranks third. The Bump-Up option and the ability to deposit new funds once during the term, really heightens the competitiveness of the Share Certificate.
The above rates are accurate as of 9/1/2017.