The high-rate sub-one-year CDs will likely do better than an EmigrantDirect savings account. However, the 5-year CDs may not in a rising interest rate environment. I did notice a few credit unions offering bump-up options (also called step-up) on their 5-year CDs. If rates go up, the customer can request a rate increase on the CD to match the current rate being offered. Usually, you'll get a lower initial rate on a bump option CD. I go into more details about these bump option CDs in this previous post.
America First Credit Union is offering a bump option on all of its regular and IRA CDs. You get a 0.15% lower initial rate if you choose the bump option. This is a very good deal especially since their regular 5-year CD has an APY of 5.25%. As a comparison, Capital One's bump option 5-year CD (which they call No Regrets CD) has an APY of 4.08% (0.42% under their regular CD).
Another example of a bump option is at America's First FCU where it's called flex rate. In this case there are no separate bump-option rates. The customer gets the option of a one-time change to a new certificate with the new higher rate and with the same term as the original certificate (flex rate is available for 3, 4 and 5 year CDs). This will extend the time that the money is locked in the CD so it may not be a good option as the CD nears maturity. However, if interest rates shoot up in the first year, this flex rate could come in handy.
I've included the city and state of the main branches so you can quickly determine if the deal is applicable to you. Note, many have branches in other cities, and credit unions often have other membership requirements besides location. Beacause of this, I've included the field of membership (FOM) link for each credit union. This will allow you to determine if you can join.
Here's the list of CD specials. All rates are in APY. These were still being advertised at the credit unions' websites as of October 13, 2005.
Certificates of Deposit with Terms Under 60 Months
- 6.14% - 6-month, $1K min, $5K max (new members) US Premier Federal Credit Union, Alexandria, Virginia (FOM)
- 5.25% - 14-month, $50K min (5% CD only has $5K min) MIT FCU, Cambridge, Massachusetts (FOM)
- 5.20% - 48-month, $1K min (some extra requirements, see post) State Department Federal Credit Union, Alexandria, Virginia (FOM)
- 5.12% - 5-month, $5K min ($50K max) Portland Teachers Credit Union, Portland, Oregon (FOM)
- 5.12% - 10-month, $5K min and $500 chk acct balance, Coastline FCU, Jacksonville, Florida (FOM)
- 5.00% - 35-month, $1K min, Golden One Credit Union, Sacramento, California (FOM)
- 4.25% - 5-month, $5K min Alliant Credit Union, Dubuque, Iowa (FOM)
60-Month Term Certificates of Deposit
- 5.30% - $1K min (some extra requirements, see post) State Department Federal Credit Union, Alexandria, Virginia (FOM)
- 5.26% - $50K min (only $500 min for a 5% CD) South Carolina FCU, North Charleston, South Carolina (FOM)
- 5.25% - $500 min (5.10% for bump option) America First Credit Union, S. Riverdale, Utah (FOM)
- 5.25% - $10K min (has step-up option) Town & Country CU, Fargo, North Dakota (FOM)
- 5.25% - $50K min (only $1K min for 5% CD) USU Community Credit Union, Logan, Utah (FOM)
- 5.25% - $75K min (only $200 min for 5% CD) Coastline FCU, Jacksonville, Florida (FOM)
- 5.15% - $1K min Suncoast Schools Federal Credit Union, Tampa, Florida (FOM)
- 5.12% - $20K min (only $1K min for 5.01% CD) Randolph-Brooks Federal Credit Union, San Antonio/Austin Texas (FOM)
- 5.12% - $1K min Central Florida Educators FCU, Orlando, Florida (FOM)
- 5.10% - $1K min US Premier Federal Credit Union, Alexandria, Virginia (FOM)
- 5.00% - $20K min Navy Federal, Merrifield, Virginia (branches all over US and world) (FOM)
- 5.00% - $250 min State Employees' Credit Union, Raleigh, North Carolina (FOM)
- 5.00% - $500 min (with flex rate option) America's First Federal Credit Union, Birmingham, Alabama (FOM)
The corresponding list of high-rate CDs from banks was posted on October 11th. My weekly summary of national high-rate savings accounts and short-term CDs was posted on October 8th. Previous lists of credit union CD deals were posted on October 4th and October 1st.