Following this week’s 10 bps increase, Teachers Federal Credit Union’s (TFCU) 60-month CD (1.35% APY) has the highest rate offered on nationally available 5-year CDs (minimum deposit of $50k or less). Like all of TFCU’s non-jumbo CDs, the 60-month CD 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 1.35% 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- All dividends earned since the date of issuance (or seven days dividends on the amount withdrawn if earned dividends are less than seven days dividends),
- 270 days dividends on the amount withdrawn.
As DA reader, SYC, pointed out in a Forum post, the rates on the 30-month and 48-month Promotional CDs were also increased this week by 10 bps and 35 bps, respectively. While not as competitive as the 60-month CD, the 30-month Promo CD now earns 0.95% APY, with the 48-month Promo CD earning 1.10% APY.
Both Promo CDs are offered as IRA Promo CDs (Traditional and Roth), earning the same APYs with the same deposit requirements.
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.
Not a teacher? No problem.
Not a Long Island resident? No problem.
Headquartered in Hauppauge, New York, Teachers Federal Credit Union’s field of membership (FOM) was previously restricted to Long Island’s Nassau County and portions of Suffolk County. When Melrose Credit Union and LOMTO Credit Union were acquired 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.
Six of these branch locations (Bay Shore, Commack, Huntington, Riverhead, Rocky Point, and Shirley) have limited services due to COVID. Details are available on TFCU’s COVID Updates & Resources page.
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 2.01% (excellent) based on September 30, 2021 data. In the past year, TFCU has increased its total non-brokered deposits by $454.57 million, an excellent annual growth rate of 6.26%. 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 25th largest credit union in the country, with nearly 373,000 members and assets in excess of $8.7 billion. According to an October 2021 CU Times article, TFCU appointed Suresh Renganath as Chief Technology Officer to lead a digital transformation just before the COVID-19 pandemic began.
CU Times: What steps have you taken so far to transform Teachers’ digital strategy? Of those steps that have been taken, which has brought the biggest challenge? What was the challenge and how did you overcome it?
Renganathan: At Teachers, we believe in transforming while performing so that we can continue to focus on delivering on our commitments to employees, members and the community at large. I began the digital transformation by forming a solid cross-functional digital governance team, and establishing both enterprise digital priorities and key success metrics. Transformation led us toward more agile processes and created internal changes that differed from the traditional waterfall method. To achieve success during the transition, we used a combination of training and effective communication, relied on our strong leadership, implemented technologies based on analytics and formed external partnerships. We invested in solutions including Member 360, Marketing Cloud and low-code digital onboarding platforms to enable us to be the best place to bank for our members.
How the CD Compares
When compared to 176 nationally available similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit, Teachers Federal Credit Union's 60-Month CD APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|1.35% APY||60-Month CD (EWP=270 days or all earned dividends, whichever is less)||Teachers Federal Credit Union|
|1.30% APY||5-Year Money Market Certificate (EWP=30% of potential dividends)||PenFed Credit Union|
|1.26% APY||5-Year Fixed CD (EWP=600 days)||Lafayette Federal Credit Union|
The above information and rates are accurate as of 1/14/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table.