University Fed Credit Union Offers Rate-Leading 48-Month CD Nationwide
The good news – Texas-based University Federal Credit Union (UFCU) has boosted the rate on its 48-month Fixed CD to 5.00% APY ($1k minimum deposit). The bad news – UFCU is closed for Presidents Day. As soon as I have complete details, I will update this blog post.
Normally, I would not publish a blog post without first contacting a financial institution to obtain information not readily available on its website, but this is a special circumstance: finally a 5% long-term CD that's available nationwide.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 3.75% | $1k | - | University Federal Credit Union | 48 Month Fixed CD | |
| 3.75% | $1k | - | University Federal Credit Union | 48 Month Fixed IRA (Traditional, Roth) |
The 48-month Fixed CD is also offered as a Fixed IRA CD (Traditional, Roth), earning the same APY with the same deposit requirements.
As stated in the Membership and Account Agreement document (page 12), the Early Withdrawal Penalty reads as follows:
The amount of the penalty will reduce dividends paid and will equal the lesser of
(a) all accrued dividends on the certificate; or (b) 25% of dividends on the entire term.
Partial withdrawals are allowed, as long the $1k minimum balance is maintained.
Availability
Headquartered in Austin, Texas, University Federal Credit Union’s field of membership (FOM) provides a way to join for almost any U.S. citizen or resident alien who has a valid Social Security number and a U.S. address.
Easy Membership: Joining American Consumer Council qualifies for UFCU membership. This is described in UFCU's "Become A Member" page,
None of these apply to you? You may be able to join through
the American Consumer Council and membership is free.
School Relationship: Students, alumni, and employees of more than 25 colleges/universities (including Texas State University and the University of Texas at Austin) qualify for membership.
Employment/Affiliation: Employees and members of nearly 180 companies and more than 30 companies are also eligible to join.
Family Relationship: Immediate family members of current UFCU members are welcome to apply.
Joining UFCU and/or opening a 48-month Fixed CD* can be done online or at any of 22 Texas branches located in Austin (14), Cedar Park, Galveston, Kyle, League City, Pflugerville, Round Rock (2), and San Marcos.
A $1 lifetime membership fee is required along with $5 savings deposit and $25
checking deposit to become a member and start enjoying the benefits of membership.
*UPDATE 2/21/2023: According to CSR, the only option for funding when opening a new membership is a debit card transaction. While UFCU does not have a dollar limit on incoming debit card transfers, the funding institution likely does. CSR suggested a two-step procedure may be the best approach: open a CD after the new membership application is approved, using any of the funding methods describe below.
Account Opening
Funding and Other Details
UPDATED 2/21/2023. As soon as I talk to a UFCU representative on Tuesday morning, I will update this section.
- Funding – After membership application is approved, ACH, wire (no fee) or Shared Branch transaction.
- CO-OP Shared Branch Participant – Yes.
- Dividends – Compounded/credited monthly. Cannot be withdrawn penalty-free.
- Maturing Funds – Default is a transfer to Savings account. Funds can then be distributed by ACH, wire ($20 fee), cashier’s check.
- Beneficiaries – Unlimited with equal shares, Social Security numbers are required.
- Grace Period –7 calendar days before automatic renewal.
- Credit Check – None.
Credit Union Overview
University Federal Credit Union has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 4.14% (excellent) based on September 30, 2022 data. In the past year, UFCU decreased its total non-brokered deposits by -$37.05 million, an average annual growth rate of -1.05%. Please refer to our financial overview of University Federal Credit Union (NCUA Charter # 1367) for more details.
With 30 founding members and $855 in deposits, University Federal Credit Union first opened its doors in May 1936. The original FOM was exclusive to the faculty and staff at The University of Texas at Austin. While the FOM has expanded in the past 87 years, UFCU’s commitment to higher education has remained constant.
Of course, our family has since grown to include other fine universities, their students, and other entities that share an appreciation for higher education. Our vision further recognizes education as a key economic engine driving growth and well-being of the vibrant Texas community in which we live.
UFCU is currently the eighth largest credit union headquartered in Texas, with nearly 357,000 members and assets in excess of $3.8 billion.
How the 48-Month Fixed CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, no bank or credit union has a higher rate than currently offered on the University Federal Credit Union 48-Month Fixed CD. The following table compares the 48-Month Fixed CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 2/20/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.
