University Federal Credit Union Offers Top 60-Month Jumbo CD Rate
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.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 2.25% | $100k | - | University Federal Credit Union | 60 Month Fixed Jumbo CD | |
| 2.25% | $100k | - | University Federal Credit Union | 60 Month Fixed Jumbo IRA (Traditional, Roth) |
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 According to CSR, the EWP is 90 days of dividends on the amount being withdrawn.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.
"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."
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.
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.
He also said you can withdraw more than the minimum balance required.
The wire fee to transfer in funds is only $3.00!
qualify for membership.
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!
If you had relied on the written agreement, you could argue 3 months.
Don't Ask.
https://www.fnba.com/deposit-rates-east-lansing/
an outrageously high penalty for early withdrawal, and their health rating is less than "A."
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.
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.
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.
current policy is. :(
I finally found a rep who's extremely knowledgeable and professional.
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?