For a limited time, TruWest Credit Union (TruWest) is offering a 9-month Investment Certificate with a “soaring rate” of 1.75% APY. The minimum opening deposit is $1k, and there is a maximum balance of $250k.
The Investment Certificate is also available as an IRA (Traditional) earning the same APY, with the same funding requirements and checking relationship.
A TruWest checking account, with at least a $500 aggregate Direct Deposit effective 30 days after opening the Investment Certificate, is required to earn the stated 1.75% APY. The APY will be reduced to a 6-month Investment Certificate rate (currently 0.35% APY) if,
direct deposit is not begun after 30 days of account opening or is cancelled during term balance.
Note: Don’t automatically turn away from this Investment Certificate because of the checking relationship. While the Direct Deposit requirement certainly hurts this deal, the APY is high enough to make it tempting. For example, if the maximum amount allowed ($250k) is deposited, the return would be approximately $937 more than the same amount invested in an internet savings account earning 1.25% APY.
According to CSR, the Early Withdrawal Penalty on the 9-month Investment Certificate is 90 days interest.
Thanks to DA reader who emailed me about this TruWest deal.
Headquartered in Tempe, Arizona, TruWest Credit Union’s field of membership (FOM) was originally open to Motorola Corporation employees only. About 15 years ago, the FOM was expanded to include residency as a qualification for membership.
Arizona Residency: Individuals who live, work, or own a business in the counties of Maricopa, Pinal, Pima, or Yavapai are eligible to join.
Texas Residency: Individuals who live, work, attend school, or “go to any business” in Travis or Williamson Counties qualify.
Employment: Employees and retirees of Motorola, Freescale, ON Semiconductor, General Dynamics Decision Systems, Compass Group PLC, or Diversified Human Resources are membership eligible.
Relationship: Family members of current TruWest members qualify for membership. “Family members” are defined as spouse, child, parent, grandparent, sibling, including adoptive, in-law, and step-relations.
Joining TruWest and/or opening an Investment Certificate can be done online or at any of the nine Arizona branches located in Chandler, Gilbert, Mesa (2), Phoenix, Scottsdale (2), and Tempe (2), or the four Texas branches in Austin (3) and Round Rock.
Credit Union Overview
TruWest Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.41% (excellent) based on December 31, 2016 data. In the past year, TruWest has increased its total non-brokered deposits by $34.1 million, an excellent annual growth rate of 4.17%. Please refer to our financial overview of TruWest Credit Union (NCUA Charter # 63832) for more details.
Established in 1952 as the Motorola Credit Union, the FOM did not expand beyond employment with Motorola until 2002, when membership was extended to the residents in the East Valley of metro Phoenix. The TruWest name was approved in 2003 and in 2004, the FOM expanded into Maricopa County, AZ, and Travis County, TX. TruWest Credit Union is currently the sixth largest credit union headquartered in Arizona, with more than 78,300 members and assets in excess of $967 million.
How the CD Compares
When compared to the similar length of term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available within the FOM, TruWest Credit Union’s 9-Month Investment Certificate APY currently ranks first.
The above rates are accurate as of 4/13/2017.