One of the good deposit deals at Tobyhanna Federal Credit Union (TobyFCU) is its Prime Rate Certificate. It has a 7-year term and its rate is based on the Prime Rate (Prime Rate - 3.25% with a floor of 3.04%). Since the current Prime Rate is 3.25%, the current certificate rate is the floor rate of 3.04%. That’s a very competitive rate for 7-year CDs. The rate is variable, but it can only go up since the floor rate is 3.04%. Another nice feature of this CD is that additional contributions may be made at any time throughout the term. Minimum deposit is $1,000. The only downside I could find about this CD is that it has a harsh early withdrawal penalty of two years of dividends. This information is only based on what’s listed at this credit union page as of 5/28/2014 and what I was told by a credit union CSR. I haven’t reviewed the disclosure of this CD, so if you find any other issues, please leave a comment.
As I mentioned yesterday, membership in TobyFCU is available to members of the American Consumer Council. The full details of TobyFCU’s membership qualifications are listed in the credit union’s How to Join page. Membership requires a minimum balance of $5 in the share savings account.
The credit union has an online application for membership and for opening several of the deposit products. I did not see this Prime Rate Certificate in the application, but I was told it can be opened online once you join.
TobyFCU is headquartered in Scranton, Pennsylvania with branches in Scranton, Wilkes-Barre, Tobyhanna and East Stroudsburg.
The DA reader QED is a member of TobyFCU and had this to say about the credit union in the comments:
Toby FCU has treated me right, but it's a relatively small, more home town or home region, kind of credit union. That's not a criticism, just something of which others should remain aware going forward. Toby is good. But size-wise it's not Alliant, PFCU, or even DCU.
TobyFCU has an overall health grade at DepositAccounts.com of a B with a Texas ratio of 22.12% (average) based on December 2013 data. Please refer to our financial overview of TobyFCU for more details. The credit union is federally insured by the NCUA (Charter # 9198).
How This CD Compares
The highest standard 7-year CD rate that’s nationally available is 2.42% APY at Franklin Federal Savings Bank. Non-callable 7-year brokered CDs are available at Fidelity with rates of 2.65%.
5-year CDs appear to be better deals these days. The highest rate is currently 2.30% APY at GE Capital Retail Bank.
These rates are accurate as of 5/28/2014.