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Mobility Credit Union Any Downside?

NelArn
  |     |   5 posts since 2022

We are considering opening a Mobility 5.12% 5 year CD. We currently have a 5 year jumbo CD maturing in October 2023, now earning 3.5%. While I’d like to wait until then, I’m afraid there won’t be any 5+ rates then. I am considering taking the 180 day EWP and opening a new account with Mobility. Any advice? My son now lives in Texas and just opened an account with Mobility so we would qualify. It concerns me that they only have a B+ rating.

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Answers
bobert456
  |     |   187 posts since 2022
Just my opinion. - Feds have indicated no rate drop for 2023, and will continue to raise rates (at least small amounts), so the max I am going for now is 2-3 years .... and lots of smaller treasuries at under a year. With rates still going up, and should not be dropping, keep more powder dry and ladder in.
I think you will have lots of opportunity before years end to lock in a 5 year rate .... in the 5% or more range.

Anyway, works for me. I certainly do not have any crystal ball.
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JeffinEasternFL
  |     |   744 posts since 2020
I foresee a "pause" by the Fed after another .25 raise in FFR but no drop this CY (at least thru spring timeframe), though I'd not be surprised after a pause if disinflation isn't happening toward the 2%~ target, yet another .25 bps will be in the cards later this CY(?). However, banks/CUs still seem to be hedging on long term rates (for the most part) as CD's over 3ish years have not increased with the FFR. Long term 5% + rates are (still, yet, ...) just Not out there except for limited membership CUs. If you can get one, buy it!
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MAKNYC
  |     |   323 posts since 2015
Working on assumption that.you will be within insurance limits so to me the rating is largely irrelevant. What I would worry about is the logistics of your proposed transaction. I would want to be able to close your current CD and open the Mobility CD on the same day to avoid the unlikely but possible nightmare scenario of a change in rate at Mobility after you commence the transactions. Since it sounds like you don’t live hereby that might be more difficult. Certainly I would become a member and deposit the requisite $5 prior to doing anything else. Then when ready I would call Mobility on transaction day to confirm the desirable rate is still current, then close current account, and wire the funds to Mobility that same day. Even so it could be tight.

As the original poster of the 5 year deal and a new Mobility member, my limited experience has been seamless and I had no issues.
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NelArn
  |     |   5 posts since 2022
Thanks for responding. I filled out an application today with Mobility and everything proceeded smoothly until it became time to put the five dollars in. Then I kept getting a 404 message page unavailable. I spoke to two different people on the telephone but since it is Saturday, I will have to wait until Monday to get help. We live in Utah and have opened several smaller accounts at Hi-land Credit Union which has a 24 month CD for 5.5%. We would put more in but fear rates will be much lower in two years. Of course, at our age (83 and 87) that might not matter. We love the add-on accounts but the rates aren’t very competitive right now. However, we have opened several as a hedge.
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JeffinEasternFL
  |     |   744 posts since 2020
I'd JUMP on it (if I could), no questions asked! $250K if ya can!
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chill08
  |     |   96 posts since 2022
Hey no joke, I used all my available funds on 5.59. None available until Nov or I would be all in on 5.12. I don’t see 5.12 as consolation rate, it’s freaking awesome
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chill08
  |     |   96 posts since 2022
I opened (2) 60 month CD's @ 5.59 last week before rates dropped. I applied for membership online and visited a branch to open CD's. The process was easy, I encountered no problems or red flags. This credit union has been in business in my area for decades and advertises competitive CD rates off and on in the newspaper. The B+ rating did not have any affect on my decision, but that is up to each individual. This rate probably won't be available much longer.  There are tips on other posts with procedures to circumvent the EWP, some have been very successful. Good Luck!
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Ltssharon
  |     |   471 posts since 2020
wow, if you care to share , what credit union was offering 5.59 on 5 year cds?
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chill08
  |     |   96 posts since 2022
Mobility Credit Union. It was for Texas residents or family members of Texas residents. The rate 5.59 was effective 1/6 but was not published on the website. A DA reader on this tread learned of this rate while opening a 24 mo 5.17 which was published in newspaper. The 5.59 rate was lowered to 5.17 and was still available as of yesterday.
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chill08
  |     |   96 posts since 2022
Sorry, my mistake, the current rate is 5.12%
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IGR
  |     |   580 posts since 2020
It only works out when you make two successful assumptions;
A. 5% CD rates are not available late 2023.
B. CD rates remain sub 5% until 2027.
If "B" is false, it's a gamble with myriad of the outcomes.
It may help, if you analyze the issue without the bias toward 5 years increments and favor of uncertain future gain over realized loss.
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