When I last reviewed Pen Air Credit Union in August, I noted the competitive 5-year CD yield of 2.00%. That is still available for CDs and IRA CDs with a minimum deposit if $500 as of 11/8/2012. Sometimes an institution will offer higher rates for Jumbo CDs. This wasn't apparent at Pen Air since there are no Jumbo rates listed. Thanks to a reader's tip, I emailed the credit union and was informed of the higher rates. The 5-year Jumbo CD has a 2.20% APY and the 4-year Jumbo CD has a 1.80% APY. These are 20 basis points higher than the regular CD rates. Minimum deposits for the Jumbo certificates is $100,000. The regular CD and IRA CD rates are listed in the credit union's share rates page as of 11/8/2012.
I have not been able to find a CD disclosure online. However, in August I was able to find a few CD details using the credit union's Ask a Question tool. Below are some of the Q&As relevant for CDs:
How much is the penalty for early withdrawal from a Certificate?
The early withdrawal penalty for a certificate less than 6 months is 90 days of interest. Any CD of 6 months or longer is a penalty of 180 of interest.
How many days do I have once my Certificate of Deposit matures to make a decision regarding what I want to do with my money in that account?
You have 7 calendar days from the CD maturity date to make changes without a penalty.
I need to take a Required Minimum Distribution, but all of my IRA funds are in certificates. Will there be an early withdrawal penalty?
No, there is not an early withdrawal penalty for required minimum distributions.
The credit union used to limit membership to active duty or retired military and current or retired federal civil service employees. However, there's now an additional way to qualify. Membership is now open to Friends of the Navy-Marine Corps Relief Society Member. Please refer to the credit union's membership page for the full details.
There's an online application which allows people to join and open accounts. On the first page of the application, the user is required to select an eligibility option. Below is the option which appears to allow anyone to join:
Join the "Friends of the Navy Marine Corps Relief Society" association and become eligible for Pen Air FCU membership. A $3 membership fee required.
Credit union membership also requires a one-time $2 fee and a minimum balance of $25 in the savings account.
Credit Union Overview
Pen Air FCU branches are located in the Pensacola metro area in Florida and in the Mobile metro area in Alabama. The credit union is also part of the CU Service Centers which is a nationwide network of shared branches.
The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 9.79% (above average) based on June 2012 data. Please refer to financial overview of Pen Air Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 1303).
How These CD Rates Compare
The next highest 5-year CD rate is 2.12% APY at Stanford Federal Credit Union (this requires checking with direct deposit and a $100K minimum). Without a large balance and without a checking account, the best rate is 2.00% APY at Mountain CU and Communitywide FCU. These rates are accurate as of 11/8/2012.