University Federal Credit Union Offers Top 60-Month Jumbo CD Rate

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Deal Summary: 60-month Fixed-Rate Jumbo CD, 3.40% APY, $100k minimum deposit

Availability: Easy membership requirement

Texas-based University Federal Credit Union (UFCU) is currently offering 3.40% APY on its 60-month Fixed-Rate Jumbo CD. The minimum deposit is $100k, with no stated balance cap.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.15%$100k-University Federal Credit Union60 Month Fixed Jumbo CD
3.15%$100k-University Federal Credit Union60 Month Fixed Jumbo IRA (Traditional, Roth)
Rates as of May 26, 2019.

The Fixed-Rate Regular CDs have APYs 25 bps under the Jumbos. The minimum deposit is $1k.

The 60-month Fixed-Rate Jumbo CD is also offered as an IRA (Traditional, Roth), earning the same APY with the same funding requirements.

UFCU’s Membership and Account Agreement document only provides Early Withdrawal Penalty details for CD terms of greater than one year. According to CSR, the EWP is 90 days of dividends on the amount being withdrawn. Partial withdrawals are allowed, as long the $100k minimum balance is maintained.

The 90-day EWP is small for 5-year CDs. When combined with a top rate, this makes the CD more attractive, especially for those who are concerned with the possibility that rates may rise in the future. You can see the effective yields of the UFCU Jumbo CD when closed early by using our CD EWP Calculator.

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 with a valid Social Security number and a U.S. address.

Easy Membership: Joining The Longhorn Foundation (one-time $20 donation) provides instant UFCU membership eligibility.

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 Fixed-Rate Jumbo CD can be done online or at any of 22 Texas branches located in Austin (12), Cedar Park, Galveston, League City, Pflugerville, Round Rock (2), San Marcos (2), and West Lake Hills.

According to the online application,

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.

UFCU participates in the Co-Op Shared Branch Network. This enables UFCU members to transact UFCU business at branches of other credit unions which are also members of this network.

Credit Union Overview

University Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.68% (excellent) based on December 31, 2018 data. In the past year, UFCU has increased its total non-brokered deposits by $160.74 million, an excellent annual growth rate of 8.12%. 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 included the faculty and staff at The University of Texas at Austin, exclusively. While the FOM has expanded in the past 80+ 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 in Texas, with more than 252,700 members and assets in excess of $2.4 billion.

How the Fixed-Rate Jumbo CD Compares

When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, University Federal Credit Union's 60-month Fixed-Rate Jumbo CD APY currently ranks first, regardless of minimum deposit requirements.

The above rates are accurate as of 4/10/2019.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Related Pages: Houston CD rates, Austin CD rates, 5-year CD rates, nationwide deals

Comments
An2
An2   |     |   Comment #1
Account agreement states:

"We may at our sole discretion grant
you permission to withdraw funds early; if such permission is granted, it will be granted only at the time you request an early withdrawal."
RonPaul
RonPaul   |     |   Comment #2
So they may deny the withdrawal?
RonPaul
RonPaul   |     |   Comment #3
Do they do a hard credit check?
anonymous
anonymous   |     |   Comment #4
I opened this CD in an Austin, TX branch today. It was a fast, pleasant experience. Thank you, Ken!

Regarding the EWP, I got some confusing information from two CSRs that seemed to contradict the language in the account agreement, referenced in Ken's writeup; something like a 6-month penalty. I don't think the printed certificate confirmation had the EWP listed. But I suppose, the account agreement should have the correct information.
Kay
Kay   |     |   Comment #5
Is there a hard inquiry to open an account with them? Appreciate if Ken could include this infor as many credit union pull hard inquiry when opening account.
Shelby
Shelby   |     |   Comment #6
Called today, two different reps confirmed 1 year or longer CD's have a 6 month EWP. However, they sent me a sent me a Truth/Lending disclosure which states 3 month EWP for CD's 1 year or longer. Acct.Membership stated in their email to me dated 4/10/19 that only if i open an account they will then provide me a full Membership Agreement Disclosure. The Memb. Agreement Disc. is also not avail on their website. I would STAY AWAY from this credit union based on their lack of transparency and refusal to make the Membership Agreement Disclosure available to inspect before one opens an account.
anonymous
anonymous   |     |   Comment #7
Shelby, I agree with you that UFCU should be more forthcoming with the membership agreement disclosure. Here's a "trick" I used to see the disclosures:

1. Click on "Open an account" and select that you are from a qualifying group;
2. Select that you want to open a savings account;
3. Click through the eStatements & Phone banking;

The next screen takes you to PDFs of: Agreements & Disclosures, Credit Pull Disclosure, Fee Schedule, and Rate Sheet.

As best as I can tell, the membership agreement that comes up this way is the same that Ken linked in the article above.
Shelby
Shelby   |     |   Comment #8
anonymous you are correct it does bring up the membership and account agreement...which states a 3 month EWP on certificates 1 year or longer.The two cust reps i talked to on 4/10/19 stated they were reading a internal document that stated a 6 month EWP for CD's 1 year or longer. Too many red flags going up for me here!
Anonymous
Anonymous   |     |   Comment #9
A CSR told me today the early withdrawal penalty doesn't apply to anyone over 59-1/2.
He also said you can withdraw more than the minimum balance required.
The wire fee to transfer in funds is only $3.00!
Shelby
Shelby   |     |   Comment #10
A CSR rep also told me an island in the Pacific is for sale....for only $1
Anonymous
Anonymous   |     |   Comment #11
They also told me I don't have to join any association to get a CD, even though I don't otherwise
qualify for membership.
anonymous
anonymous   |     |   Comment #16
The wire fee is the incoming wire fee that UFCU deducts when a wire is received. This does not include any outgoing wire fee that the institution where the wire originated from might charge.
Anonymous
Anonymous   |     |   Comment #12
A question for Ken:

Are credit unions legally bound to abide by the terms in their disclosures at the time we open a CD?
A CSR told me the penalty for early withdrawal is 6 months dividends, but their agreement
online says 3 months. Thanks!
Don't Ask
Don't Ask   |     |   Comment #13
That is why I never ask. Now that you have asked, the 6 month penalty applies.

If you had relied on the written agreement, you could argue 3 months.

Don't Ask.
#14 - This comment has been removed for violating our comment policy.
Nothing
Nothing   |     |   Comment #15
Why doesn't the written agreement control? What is the rule you are alluding to when there is an oral representation that is contrary to written representation? Thanks
Saver
Saver   |     |   Comment #17
Is there anyone from out of state got membership approved?
rockies
rockies   |     |   Comment #18
If you are looking for a high yield 5 year CD and cannot meet the membership requirements here (or you do not have $100K to invest), check out the 3.35% nationwide CD from First National Bank of America requiring only $1,000 minimum.
https://www.fnba.com/deposit-rates-east-lansing/
Anonymous
Anonymous   |     |   Comment #19
rockies, thank you. I saw your post on this in the forum! The problem is that their 5 year CD has
an outrageously high penalty for early withdrawal, and their health rating is less than "A."
rockies
rockies   |     |   Comment #20
Thanks for this feedback. Do you happen to know what the specific EWP is? Unfortunately, I do not. I can see how EWP is a consideration for those who may not hold to maturity. On the safety front, I know this may be a consideration for those who exceed the FDIC limits. Just as additional data points, Bauer Financial ranks FNBA as 3 stars out of 5 and Bankrate rates 4 stars out of 5. So, I guess each investor can determine how they value APY vs. EWP vs. Safety vs. minimum investment required.
Anonymous
Anonymous   |     |   Comment #21
This is what they sent me:
EARLY WITHDRAWAL PENALTIES: We may impose a penalty if you withdraw any of the balance before the maturity date. The early withdrawal penalty imposed will equal:

o 180 days of interest for CD’s between 12 and 23 months

o 360 days of interest for CD’s between 24 and 47 months

o 540 days of interest for CD’s greater than or equal to 48 months

And here's additional information:
We do not wire funds because there is no account number to wire the funds to. It is an application and transfer (bank-to-bank) called an ACH. We waive the fee for this ACH transfer. After your application is submitted, a branch associate will review and reach out to you by the next business day to provide you next steps.
anonymous
anonymous   |     |   Comment #22
Since not much has been commented about this deal in the last few days, I thought I'd add some more local perspective.

This is the largest Austin-area credit union, by size and local membership. I've been a member of UFCU on and off over the last 20 years. It was my first credit union membership, and I remember being quite impressed with all the "bank-like" services UFCU already offered then. So, it was a mostly positive experience.

In the early 2000's, online savings accounts started to emerge, and UFCU's deposit rates did not keep up. I kept an account because UFCU offered some nice services, such as cashing savings bonds, but at some point (after some problems related to inactivity) UFCU and I both moved on from our relationship. That was about 10 years ago.

UFCU's deposit rates have been lagging for most of the last decade, so it's nice to see them change direction and offer competitive CD rates. I decided to "support" them if they offer good rates again, so I jumped on this CD deal and became a member again. So unfortunately I know nothing about how their customer service has evolved over the last 10 years (they were competent in my prior experience) and the discrepancies over the EWP are somewhat puzzling. But I hope this description can be helpful to others who are on the fence one way or another about this deal.
Shelby
Shelby   |     |   Comment #23
anonymous comment #22, these CD deals are for jumbo min. $100k. If UFCU wants investors to commit $100K of their money they need to be clear about the rules that govern these CD's, because once purchased members need to abide by those rules. The membership agreement STILL states a different EWP then what is given by Cust. service reps, and even the reps are STILL giving out different info. This CU conducts itself in a complete unprofessional way, and for me i will not invest my money for 5 years with a business i cannot trust. There are just too many other good CU's to work with out there.
Anonymous
Anonymous   |     |   Comment #24
I finally spoke to a rep who sounds like he knows what he's talking about: the online agreement does say 3 months EWP, but it is now 6 months. He's working on getting the online agreement changed.
anonymous
anonymous   |     |   Comment #25
Anonymous #24, can you elaborate what the rep meant that the EWP "is now 6 months"? That would imply something like that the Truth-in-Savings disclosure agreement presented online (with revision date 7-2017) is out of date. Relatively unlikely for a credit union as large as UFCU (but not impossible). I do agree that 3 months sounds a little bit "too good to be true" for a 5 year CD.

I think it's also possible that the reps are accessing an old document for their 6-month EWP info. If you look at Ken's posts about UFCU from the 2011 time frame, the EWP in the account disclosures actually was 6 months at that time.
Shelby
Shelby   |     |   Comment #26
Still more confusion about the EWP...and I have an email from the credit union dated a few day ago that states "we will only sent you an account agreement when you become a member." Because of all the changing answers to the EWP question (read other comments above) AND lack of updating their website agreement disclosure before offering this CD deal .....this credit union AGAIN is a pass for me.
Anonymous
Anonymous   |     |   Comment #27
The rep told me that they've updated their policy to increase the EWP to 6 months. And they realize that what we're agreeing to online...is not what their
current policy is. :(
Anonymous
Anonymous   |     |   Comment #28
They're honoring the 3-month EWP since that's what's in the agreement when you sign up. I feel completely confident in this credit union --
I finally found a rep who's extremely knowledgeable and professional.
Shelby
Shelby   |     |   Comment #29
Anonymous comment #28...i am completely confident that no one should follow your advice regarding joining this CU and opening the offered CD's. Just read above thru all the comments, everyone cant be wrong about all the misinformation and lack of preparation on their behalf before making this CD offer. Confidence is exactly what this CU does not convey in my opinion.
Anonymous
Anonymous   |     |   Comment #30
It wasn't intended as advice. Just sharing my revised opinion of the CU. :)
anonymous
anonymous   |     |   Comment #31
I checked the copy of the account agreement that I actually signed, in branch, when I opened my account earlier this month. It is identical to the agreement that Ken linked above (7/2017 revision) and states that the EWP is 3 months dividends of the amount withdrawn.

So far, the only official terms I've seen consistently have the 3 month EWP.

It's not uncommon, in general, that CSRs are not knowledgeable about EWP terms. EWPs at UFCU seem to also vary by product. IRA CDs and Step-Up certificates have 6 months EWP, maybe the CSRs are looking at those terms, who knows?
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