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Best Bank Account Interest Rates - Summary for September 20, 2016PFFCU Again Changes Eligibility Requirements for the Worse
The Police and Fire FCU (PFFCU) in Philadelphia has again added new limits on who can qualify to join the credit union. PFFCU continues to offer a 4.00% APY 5-year CD and a 3.00% APY 3-year CD (Update: These CD rates just fell by 50 basis points), so unfortunately, fewer people will now be able to take advantage of these hot CD deals. For a little while anyone in the country could qualify to join PFFCU by becoming a member of Weavers Way Cooperative Association. In early July, PFFCU limited credit union membership to only Co-op members who are residents of PA, NJ or DE. PFFCU has again changed this. Co-op members must now be residents of Pennsylvania. Here's how PFFCU's members group list was changed:
Old
Weavers Way Cooperative Association
--must be a resident of PA, NJ or DE
New
Weavers Way Cooperative Association
--must be a resident of Pennsylvania
Thanks to the reader who mentioned this news in the comments. The reader also had a good point in that PFFCU could further narrow this. Those in PA who are looking for long-term CDs may not want to wait too long to join PFFCU. Based on how PFFCU has changed this, I wouldn't be surprised if this gets furthered narrowed to Philadelphia.
This is very frustrating to savers who just want a decent return on their hard earned savings. Why would PFFCU make such a change? A reader in my last PFFCU post gave his opinion which makes sense:
Sadly it isn't that surprising. Like most banks and credit unions I am sure PFFCU is awash in liquidity and deposits these days and doesn't have a profitable way to put hugely increased deposits to work.
Perhaps they think it makes more sense for them to offer better rates to a smaller group than have to cut their rates to the point that they remain solvent as a much larger institution. Because, let's face it, most of the rate chasers that bring in money from far away don't become potential loan customers.
I just started a forum thread about an American Banker article which describes how many banks are "drowning in deposits".
For those in Pennsylvania and who are interested in these hot CD deals, please refer to my PFFCU review for more details about the credit union and these CDs.
