United States Senate FCU Nudges Up Rate On Top 60-Month CD
In the past twelve months, United States Senate Federal Credit Union (USSFCU) has added 114 bps to its 60-month Share Certificate top-tier APY in six rate changes. This week’s six bps increase bolsters the 60-month Share Certificate’s position as the rate leader for nationally available 5-year CDs. It’s nice to see an institution raising the rate on a long-term CD, while so many others are concentrating on short-term rates.
The 60-month Share Certificate is also available as an IRA (Traditional, Roth, SEP), earning the same tiered APYs with the same funding requirements.
All of USSFCU Share Certificates have tiered APYs based on deposit levels of $1k, $20k, and $60k. USSFCU’s Share Certificates page lists the 3.69% APY for deposits of "$60,000 - $99,999 plus Jumbo." Jumbo does not refer to a separate Jumbo Share Certificate, but to deposits of more than $99,999. In other words, there is no stated balance cap for the top tier APY.
As stated on the Fees and Charges page, the Early Withdrawal Penalty reads as follows:
360 days of dividends paid and accrued on the withdrawal for terms of greater than 3 years.
Thanks to DA reader, rockies, for this week’s USSFCU Forum post.
Bump Rate Certificates
USSFCU continues to offers three long-term Personal Bump Rate Share Certificates, which permit a “one–time option to bump it up to an even better rate during the term of your certificate.” Like the Share Certificates, the Bump Rates have tiered APYs, based on deposit levels of $60k+, $20k+, and $1k+, but these APYs are 10-21 bps lower than those of the Share Certificates.
Here’s the question you need to ask yourself – is the lower rate worth the bump option? While there is no definitive answer to that question, DA guest contributor, Charles Rechlin, has written an article that may help you decide for yourself. Here’s a teaser quote from Personal CD Investing: Step-Up and Step-Rate CDs:
Because I view a bump-up right as being of dubious value, my practice is to pass on
step-up CDs unless the initial rate offered is at, above, or at least reasonably competitive with the best rate available nationally for a CD of the same maturity with no step-up right.
Availability
Headquartered in Alexandria, Virginia, United States Senate Federal Credit Union offers membership “via sponsorship or contribution.”
Easy Membership Requirement - Membership in the American Consumer Council, Virginia Chapter (VACC) has been added to the field of membership (FOM). Using the Promo Code “USSFCU” waives the $8 VACC Membership Fee.
Members of the United States Capitol Historical Society (USCHS) are also eligible to join USSFCU (minimum contribution of $50). Joining either organization must be done prior to completing the USSFCU application. More details are available on USSFCU’s website.
Employment Sponsorship - Current employees and retirees of more than 140 SEGs, including The United States Senate, The United States Supreme Court, The Government Accountability Office, Democratic National Committee, qualify for membership.
Family Sponsorship - Immediate family members (spouse, child, sibling, parent, grandparent, or grandchild, including step and adoptive relationships) of an existing USSFCU member or current employee of an SEG are eligible to join, as are household members of the same.
Joining USSFCU and/or opening a Share Certificate can be done online or at either of two District of Columbia branches or the Alexandria, Virginia branch. A secure application can also be requested by calling 800.374.2758 or sending an email to [email protected]
Credit Union Overview
United States Senate Federal Credit Union has an overall health grade of "A+" at DepositAccounts.com, with a Texas ratio of 2.10% (excellent), based on September 30, 2018 data. In the past year, USSFCU increased its total non-brokered deposits by $111.8 million, an excellent annual growth rate of 20.21%. Please refer to our financial overview of United States Senate Federal Credit Union (NCUA Charter # 624) for more details.
In 1935, seven individuals pooled their resources and obtained a charter for the United States Senate Employees Federal Credit Union. The original FOM was exclusive to U.S. Senate employees, but was expanded through mergers with the General Accountability Office Federal Credit Union, the DC Unemployment Federal Credit Union, and the American Trucking Association Federal Credit Union. The United States Senate Federal Credit Union rebrand occurred in 1990 in an effort to reflect the changing membership. USSFCU is currently the 15th largest credit union in Virginia, with more than 38,500 members and assets in excess of $756 million.
How the Share Certificate Compares
When compared to the other similar length-of-term CDs tracked by DepositAccounts.com that are nationally available, all of United States Senate Federal Credit Union's 60-month Share Certificate APYs currently rank in the top five, regardless of minimum deposits.
| Interest Rate | CD Length of Term | Credit Union/Bank |
|---|---|---|
| 3.69% APY | 60-Month Share Certificate ($60k min) | United States Senate Federal Credit Union |
| 3.62% APY | 60-Month Share CD ($20k min) | United States Senate Federal Credit Union |
| 3.61% APY | 5-Year Senior Citizen CD ($2.5k min) | State Bank of India (IL) |
| 3.60% APY | 5-Year Popular Direct CD ($10k min) | Popular Direct |
| 3.56 APY | 60-Month Share CD ($1k min) | United States Senate Federal Credit Union |
The above rates are accurate as of 1/3/2019.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
I will await tomorrow's employment report release; see where that indicator is pointing. But I do not want to err again. One should not allow the good to become enemy of the perfect. Perhaps, sadly, a CD opportunity at 3.69% APY must now be considered seriously.
Kind of reminds me of putting in a buy order for a stock, as soon as it gets close you change the order and put in a lower bid and before you know it the stock is up and you missed it....lol
So I will not be doing this deal.
Payroll increases for October and November were revised up by a total 58,000. October’s was revised from 155,000 to 176,000 and November’s, from 237,000 to 274,000.
I take this information as indicator the economy is doing quite well, notwithstanding events during December which cast doubt. I don't focus on what the Fed does with short rates. An ongoing strong economy will positively impact longer CD rates and that is my focus.
All that said, I will be keeping a weather eye on February first, at 8:30 am ET, to learn if there is weakness after all in the January numbers. But for now things are looking pretty great.
P.S. I found this address in case someone needs it: [email protected]