Here’s another case of higher long-term CD rates. We have been seeing a few of these in the last month as Treasury yields have been rising. This case is at Stanford Federal Credit Union. Its 4-year and 5-year certificate rates increased on July 1st. The 5-year Jumbo Premium Certificate Rate went up from 2.07% to 2.22% APY, and the 4-year Jumbo Premium Certificate Rate went up from 1.56% to 1.71% APY. Minimum deposit is $100,000. Rates are lower for smaller deposits. These "Premium Certificate Rates" require that the members either have a current loan or a checking account with a monthly direct deposit of $500. The non-premium rates also went up and are now competitive. These include a 1.92% APY for a Jumbo 5-year CD and a 1.41% APY for a Jumbo 4-year CD. These rates are listed in the credit union's certificates page as of 7/2/2013.
Last year Stanford FCU increased the early withdrawal penalty on its long-term CDs. According to the small print at the bottom of the certificates page:
The penalty for Certificate of initial term less than one year will be equal to ninety (90) days of dividends. The penalty for Certificates of one year or greater will be equal to one hundred eighty (180) days of dividends. The penalty for Certificates of four years or greater will be equal to three hundred sixty five (365) days of dividends.
The penalty for terms of 4 years and above used to be just 180 days of dividends. It's now 365 days of dividends.
In addition to the Premium certificate rates, a member can qualify for the Premier Health Savings Account with the checking account and direct deposit. The Premier HSA has a 1.51% APY as of 7/2/2013.
Stanford FCU does have some nice checking account features which can make it easier to maintain the Premium rates. This Stanford checking comparison page summarizes the checking account features. The eChecking has no monthly service fee. Credit union members have access to surcharge-free ATMs at CO-OP and Allpoint Networks. Also, they have access to the shared branch network.
You can also earn more money with Stanford's refer-a-friend bonus. I have more details in my Stanford FCU bonus review.
Anyone can join Stanford FCU. According to the credit union's page Who Can Bank at Stanford:
If you do not fall within our regular field of membership, you can join the Museum of American Heritage (MOAH) or Friends of Palo Alto Libraries (FOPAL) in order to become a member of Stanford Federal Credit Union.
Credit union membership requires a minimum $50 balance in an account. Accounts can be opened online, but they require that you mail in your check and copies of your ID. Please refer to this Stanford FCU page for more details.
Credit Union Overview
Stanford Federal Credit Union branches are located in Stanford and Palo Alto, California. The credit union is also a member of CU Service Centers which allows you to perform many transactions at branches of other credit unions which are part of the network.
The credit union has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 8.07% (above average) based on March 2013 data. Please refer to our financial overview of Stanford FCU for more details. The credit union is federally insured by the NCUA (Charter # 13392).
How This CD Rate Compares
This Stanford FCU Premium Jumbo 5-year CD rate is the highest that’s nationally available. Without a checking account requirement, the highest is rate is 1.96% APY at Melrose Credit Union. This rate is accurate as of 7/2/2013.
Searching for Top CD Rates
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.