In today’s low-interest rate environment, deals sometimes arise when an institution holds steady with its rates while others lower their rates. That’s the case with Northwest Federal Credit Union. The credit union continues to offer competitive 2-year and 3-year CD and IRA CD rates, and they are very competitive for a $100K minimum deposit and for members who have a Premier Checking account or the Heritage Club status. If you meet these requirements, the 2-year CD has a 1.51% APY and the 3-year CD has a 1.65% APY. Rates are 25 bps lower if members don't have Heritage Club or Premier Checking status. Also, rates are 20 to 25 bps lower for a $500 minimum deposit. These rates are listed in the credit union's rate sheet as of 4/3/2013.
I was told by a credit union CSR today that one could apply for membership, the Premier Checking and a CD in the online application at the same time. The catch with the Premier Checking account is that a $50,000 combined savings and loan balance is required to avoid a $10 monthly fee. Having at least $50,000 in a CD should satisfy this requirement. You must also keep the checking active. Heritage Club members don’t have to open the Premier Checking, but a $50,000 combined savings and loan balance is still required. The 0.25% rate bump is for certificates with a $100K minimum deposit. The rate bump is only 0.10% for certificates with a deposit between $50K and $100K. Also, the certificate term must be one year or longer. No rate bumps are available for the add-on certificates.
Northwest FCU used to offer good deals on its 1-year and 2-year add-on CDs, but the rates are so low now, it’s hard to find much value in these. The credit union also used to offer top rates on its 5-year CD, but you can get higher rates elsewhere even with the 0.25% rate bump.
Credit Union Membership
Northwest FCU has an online membership application. In the membership section, several options are listed including joining the Financial Awareness Network (FAN). This makes it easy for anyone to join with a $10 one-time fee. More details about the field of membership are listed in the credit union's Membership Eligibility page. Membership requires a minimum deposit of $5 into your share savings account.
Credit Union Overview
Northwest Federal Credit Union branches are located in the Virginia cities of Manassas, Chantilly, Herndon and Vienna. You can also use shared branches for making deposits, withdrawals and for other common banking transactions.
It's a large credit union with over $2.5 billion in assets. The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 3.58% (excellent) based on September 2012 data. Please refer to our financial overview of Northwest Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 5500).
How These CD Rates Compare
Other than Northwest FCU’s 2-year CD, the highest 2-year CD rate that’s nationally available is 1.30% APY at NexBank. The highest 3-year CD rate is 1.75% APY at Connexus Credit Union, but this requires an active checking account with direct deposit. The highest without a checking account requirement is 1.46% APY at Melrose Credit Union. These rates are accurate as of 4/3/2013.
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.