UPDATE 5/16/16: Many thanks to Nikki Moore, Executive Vice President of Space City Credit Union, for clarifying the EWP information in her comment below, and for adding it to Space City CU’s Rate page. I have also incorporated the EWP into this blog post.
Earlier this week, Space City Credit Union (Space City CU) added a series of Certificate Specials to its product line, with the 4-year Certificate Special (2.01% APY) and 5-year Certificate Special (2.26% APY) being the most competitive. The minimum opening deposit is $2k of new money, with no balance cap.
All the Certificate Specials are available as IRAs (Traditional) earning the APYs, but with a lower minimum deposit of $500.
As stated on Space City CU’s Rates page, the Early Withdrawal Penalty reads as follows:
The early withdrawal penalty for certificates of deposit is the greater of $25.00, or 50% of the dividends that would have been earned on the amount withdrawn (over the remainder of the certificate’s term).
The Early Withdrawal Penalty is not listed on Space City CU’s website, so I did a Live Chat in hopes of getting the information I needed. This was one of the more frustrating "conversations" I’ve had in a long time with a CSR.
[CSR] "There is no set penalty sir but there are many factors that have to be taken into account to determine the penalty fee. In order for us to give you an estimated penalty fee you would need to have a CD with us."
[CSR] "Yes sir many factors are taken into consideration to determine the fee."
[Me] "Can you tell me what the many factors are?"
[CSR] "No sir you would need to have a CD with us."
We went back and forth for a while, but I was never able to find out anything more than 1) there is a penalty fee, and 2) it has many factors.
Headquartered in Houston, Space City Credit Union offers membership in a variety of ways:
Residency - Individuals who live, work, worship, or attend school within a 10 mile radius of the Houston main branch or the La Porte branch are eligible to join.
Employment - Employees, annuitants, or retirees of more than 70 SEGs, including Stewart & Stevenson and General Electric, qualify for membership.
Relationship - Membership is also extended to current members’ "entire family by blood or marriage," which is defined as "aunts, uncles, cousins, sons, daughters, in-laws, grandparents, and spouses."
Credit Union Overview
Space City Credit Union (NCUA Charter # 61135) has an overall health grade of "B+" at DepositAccounts.com, with a Texas ratio of 4.957% (excellent) based on December 31, 2015 data. In the past year, Space City CU has increased its total deposits by $2.6 million, an excellent annual growth rate of 4.39%. Please refer to our financial overview of Space City Credit Union for more details.
Space City Credit Union was chartered in 1965 as the Stewart & Stevenson (S&S) Credit Union. (Stewart & Stevenson is a Houston-based company that has been designing and manufacturing specialized equipment since 1902.) S&S Credit Union changed its name to Space City Credit Union in 2004 to better reflect the expanding field of membership. Two mergers in 2012 (HHA FCU of Houston and Independence Parkway FCU of La Porte) nearly doubled the size of Space City CU, which today has more than 8,000 members and assets in excess of $71 million.
How the CDs Compare
When compared to the 173 similar length-of-term CDs tracked by DepositAccounts.com that available to residents of Houston area, Space City Credit Union's 4-year Certificate Special currently ranks third.
When compared to the 177 similar length-of-term CDs tracked by DepositAccounts.com that available to residents of Houston area, Space City Credit Union's 5-year Certificate Special currently ranks third.
The above rates are accurate as of 5/14/2016.