Teachers Federal Credit Union Hikes 60-Month Certificate Rate
It’s been almost three years since my last Teachers Federal Credit Union (TFCU) blog post. In the past month, TFCU has added 40 bps to its 60-month CD, boosting the APY to 1.25% and making the 60-month the most competitive CD in TFCU’s product line. Like all of TFCU’s non-jumbo CDs, the 60-month requires a $1k minimum opening deposit, with no stated balance cap.
The 60-month CD is also offered as an IRA CD (Traditional, Roth, and CESA) earning the same 1.25% APY. The Traditional and Roth versions required a $1k minimum deposit, but the CESA can be opened with only $500.
As stated in the Truth-in-Savings disclosure, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity date of more than one year:
The penalty we may impose is the lesser of:
- All dividends earned since the date of issuance (or seven days dividends on the amount withdrawn if earned dividends are less than seven days dividends),
- 270 days dividends on the amount withdrawn.
Funding and Accessing Maturing Funds
Funding a TFCU CD can be done by ACH, wire transfer ($10 fee for incoming wires), by check, or through an internal transfer. TFCU participates in the CO-OP Shared Branch network, make the transfer of outside funds into a TFCU savings account relatively easy. Credited monthly, dividends can be distributed by check to the address on file, transferred to a TFCU checking/savings account, or remain on deposit in the CD.
Maturing funds can be distributed by wire ($20 fee for outgoing wires), by check to the address on file, or through an internal transfer to a TFCU savings account. The grace period before a CD automatically renews is a short seven calendar days.
According to CSR, unlimited beneficiaries can be named, with each receiving an equal share. Legal name, Social Security number, and DOB is required for each beneficiary.
Availability
Not a teacher? Not a problem. Don’t live on Long Island? Not a problem.
Headquartered in Hauppauge, New York, TFCU’s field of membership (FOM) was previously restricted to Long Island’s Nassau County and portions of Suffolk County. When TFCU acquired Melrose Credit Union and LOMTO Credit Union in 2018, TFCU also acquired an “open” charter, making virtually all U.S. citizens/resident aliens eligible to join.
Joining TFCU and/or opening a CD can be done online, or in person at any of 32 New York branches located in Amityville, Bay Shore, Briarwood, Center Moriches, Central Islip, Commack, East Meadow, East Northport, Farmingville, Hauppauge, Holbrook, Huntington, Kings Park, Manorville, Massapequa, Merrick, New York, Nesconset, North Babylon, Oakdale, Patchogue, Port Jefferson Station, Riverhead, Rocky Point, Selden, Shirley, Smithtown, South Setauket, Stony Brook, Upton, Wading River, and Woodside. Appointments at any of TFCU’s branch locations can be scheduled online.
Although a TFCU membership can be established with $1 minimum deposit in a Share Savings account, there is a monthly $10 inactive account fee if the Share Savings account balance falls below $100 and there has been no account activity during the previous two years.
TFCU participates in the CO-OP Shared Branch network and the Allpoint ATM network.
Credit Union Overview
Teachers Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 1.58% (excellent) based on March 31, 2021 data. In the past year, TFCU has increased its total non-brokered deposits by $841.98 million, an excellent annual growth rate of 12.29%. Please refer to our financial overview of Teachers Federal Credit Union (NCUA Charter # 8116) for more details.
Founded in 1952, Teachers Federal Credit Union is currently the 23rd largest credit union in the country, with nearly 361,000 members and assets in excess of $8.7 billion. According to a February 2021 CU Times article,
New York’s Teachers Federal Credit Union said it plans to nearly double its automobile loan and lease production this year, in part as it spreads further from its Long Island base.
Teachers Federal Credit Union originated $500 million in automotive loans and leases in 2020, and its goal is to generate $900 million this year.
Francis Collins, SVP for credit, said the goal is a combination of originations from its existing footprint of 32 New York metro branches in 2020 and what it anticipates generating this year by adding new markets.
How the CD Compares
When compared to 179 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, Teachers Federal Credit Union's 60-Month CD APY currently ranks third.
The above information and rates are accurate as of 7/30/2021.
To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table.
