UPDATE 2/8/2016: Thanks to all the DA readers for their helpful comments. I have followed up with CSR and have edited this post to reflect the information provided by the DA readers.
Transportation Federal Credit Union (TFCU) started February by raising the rate on its 3-year Share Certificate (2.50% APY). The minimum deposit is $1K, with
no a $100K balance cap per member. This is a limited time offer, but no specific end date is listed.
This is the highest APY in the Share Certificate’s almost five-year history, with the rate being below 1.50% for the vast majority.
|1.51%||$1k||-||Transportation Federal Credit Union||3 Year Traditional IRA (Traditional, Roth, CESA)|
|1.41%||$1k||-||Transportation Federal Credit Union||3 Year CD|
The 3-year Share Certificate is also available as an IRA Certificate (Traditional, Roth, and CESA), earning the same APY and with the same funding requirements.
According to CSR, the Early Withdrawal Penalty (EWP) is based on a formula, with the time left until maturity the determining factor. CSR also stated that the EWP would not exceed 180 days interest.
Headquartered in Alexandria, Virginia, Transportation Federal Credit Union offers membership to active and retired employees, military personnel, contractors, and other related occupational groups affiliated with the U.S. Department of Transportation and the Federal Aviation Administration (Washington, D.C.). The two largest groups included are the Department of Homeland Security and the TSA, no matter where the employee or retiree lives.
In the Washington, D.C. area there are more than 55 governmental agencies, businesses, and associations that qualify for membership. There are also eight Boston area governmental agencies (including the First Coast Guard District) and businesses that also qualify.
Immediate family members and household members of individuals who are eligible for membership can also qualify. Complete details are available on TFCU’s "Join Us" page.
Easy membership: Although the American Consumer Council (ACC) is listed under "In Washington, D.C. and surrounding areas" on the "Join Us" page, according to CSR, anyone, regardless of where they live, can qualify for Transportation FCU membership by joining the ACC.
Joining TFCU can be done by downloading the Membership Application and returning it to any of two Washington, D.C. branches or the Boston branch or by mail. (Note: TFCU requires two government-issued forms of photo identification to complete the application process.)
A Share Certificate can be opened online if you are already a member, but new members must open a CD at a branch location, or by sending an email request or by phone.
Credit Union Overview
Transportation Federal Credit Union (NCUA Charter # 3140) has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 1.35% (excellent) based on September 30, 2015 data. In the past year, TFCU increased its total deposits by $85K, an average annual growth rate of 0.05%. Please refer to our financial overview of Transportation Federal Credit Union for more details.
Transportation Federal Credit Union was founded as the Civil and Aeronautics Federal Credit Union in 1939 by twelve employees of the Civil Aeronautics Board, the first governmental agency that regulated aviation services. More than 75 years later, TFCU has expanded its field of membership and grown to 19,300+ members, with assets in excess of $196 Million.
How the CD Compares
Given that Transportation FCU’s field of membership is based on employment (nationwide) and association affiliation (District of Columbia and surrounding areas; Boston and surrounding areas), limiting the comparisons by a geographic variable made no sense. A nationwide comparison was a better option, but just to be certain, I selected "Any CD."
When compared to all the 5,550 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit, Transportation FCU’s 3-Year CD currently ranks first.
When compared to the 147 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available nationwide, Transportation FCU’s 3-Year CD clearly ranks first.
The above rates are accurate as of 2/4/2016.