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Another Interesting Credit Union If You Are Over 59 1/2 And Have IRA's

Ally6770
  |     |   4,310 posts since 2010

I have a Roth IRA with Northwest Federal Credit union. The

statements they send do not say Roth IRA just IRA. I was concerned. I do have an account that the original deposit went into that says Roth IRA account and it was then put in an IRA certificate.

The are sending a letter stating that it is a Roth IRA certificate with the CD number. I was concerned that if I passed before the CD matured that the beneficiaries would not know it was a Roth or if the check given to them would say an Inherited Roth IRA from xxxx with the date of death for the benefit of xxxx.

But when speaking with him I found out if you are over 591/2 and have an IRA with them you can withdraw or even close the CD for any reason with no penalty. 

Achieva did that also when I closed it before it was due this year because the balance was getting to high for insurance and I wanted to split it. Also learned later that Achieve has another $100,000 insurance for IRA's only.  

We should have a spreadsheet with a list of places that have benefits such as this. Maybe it would encourage other places to have benefits for the retirees and it would encourage other credit union to add to them? Or maybe a list of places that have other benefits that everyone can enjoy?

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Ally6770
  |     |   4,310 posts since 2010
The credit union just called and they will also if your are over 591/2 allow you with no penalty to do a Roth conversion from your traditional IRA you might would have with them. One more benefit.  I believe their 5 yr CD pay 4.85% and after 5 yrs it would be 5.23 if you left the interest in a Roth to  compound for the 5 yrs. 
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saver42
  |     |   32 posts since 2019
Thanks for the info. I am a member of NWFCU, and would put money there because of their no-ewp ira policy except right now their rates are well below others, even their "higher" ira rates. When Jan comes, if they raise their rates I'll put some ira money there, but if not, it'll go elsewhere again because even their rates are just too much lower than other places right now. So i do hope they raise their rates because i'd like to put a little there. But thanks for confirming the info.
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Ally6770
  |     |   4,310 posts since 2010
When I put money there they were the highest for 5 year IRA. I am happy with them and would have lost too much money waiting for a higher rate. I am still ahead of what I would have lost while waiting. I believe their reward checking account pays 4% on $25,000.
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GH1
  |     |   1,058 posts since 2017
is that on a roth already with them. Or can you transfer in
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Ally6770
  |     |   4,310 posts since 2010
It is with an IRA on deposit with them.
They cannot control a CD at another institution.
The institution that has your money controls the rules for your money.
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me1004
  |     |   1,381 posts since 2010
I’ve been with NWFCU for many years now. But I haven’t been doing anything but keeping it open for many years because they haven’t had the good CD rates that got me there and kept me for a while. (But this talk of 5.23% APY - but this talk of 5.23% APY for five years, why haven’t we had a story about that, I will just looking for that but went elsewhere that I did not want to go. I joined when it was a nationally available CU, but as I recall, it no longer is, and regardless, it — and that 5-year CD — does not come up in my sort in the CD rate schedule.)

I will mention too, about the senior benefit, they used to, maybe still do, provide an extra 0.25% on CD rates to seniors. And seems to me my checking account also is a special benefit for seniors.

Nice of them not to charge an EWP on closing an IRA CD. I have my Roth IRA in mutual funds, not looking to go to bank or CD rates on it. But, about them allowing a no-penalty IRA conversion to a Roth IRA, I’m not certain what you mean. Converting at the same institution does not mean you have to close it early. And there is no penalty for converting a traditional IRA to a Roth IRA, although there might be routine fees. Maybe you just mean no fees, rather than no penalty.
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Ally6770
  |     |   4,310 posts since 2010
It is on Ken's pull down for 4.85% for 5 years for IRAs. Compounded for 5 years it is 5.23%. I posted this a few months ago and again saying it pays 5.23% if left to compound for the 5 years. Any one can figure this out with their calculator on their phone or computer.
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me1004
  |     |   1,381 posts since 2010
Ally6770, I don't know why you are getting the IRA CD listing in your sort of the CD rates chart her at DA. I just checked, and I see that I do get NW FCU in the list, but it does not show the higher IRA CD rates, only the lower casic rates, so it is listed, and lost, way, way down the list, not up at either 4.85% or 5.23%. (The non-IRA 5-year APY is only 4.00%.)

But I have confirmed at NW FCU that ,yes, they are offering the 5-year 4.85% APY IRA certificate. See the NW FCU rate chart here:

https://www.nwfcu.org/certificates

Ken, or otherwise DA, please have the IRA-only rates listed as well, At NW FCU, the rates are in a double chart, first column for regular CDs and second for IRA CDs. You are picking up only the first column.
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Ally6770
  |     |   4,310 posts since 2010
If you read my post it says- - It is on Ken's pull down for 4.85% for 5 years for IRAs. I didn't realize that people did not know there was a separate place for CD's and IRA's. Many places will offer for IRA's and not reg CD's and visa versa.
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me1004
  |     |   1,381 posts since 2010
By Pull Down I thought you meant the pull down CD rates chart menu. I don't know any other CD rates chart pull down menu here. At any rate, that issue of the two rates not included in the CD rates chart menu should be fixed.
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saver42
  |     |   32 posts since 2019
To confirm what PD and others wrote: NWFCU's 5-year IRA CD
has a rate of 4.75% with an APY of 4.85% (not 5.12%)
https://www.nwfcu.org/certificates
Rates just too low for me right now.

Come on, NWFCU. You got your start as the CIA's credit union (true).
You should know the competition's rates are higher. Raise your rates
and you'll get more deposits.
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topcat10
  |     |   7 posts since 2023
Achieva did not allow me to close a CD after subscribing to a 12 month CD and 3 weeks later have 13 month CD with a higher rate.
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happyharold4
  |     |   393 posts since 2022
P-D is correct---The APY is already established at 4.85 and it will remain the same throughout the the 5 year period.
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Ally6770
  |     |   4,310 posts since 2010
That is exactly correct. That is what the site says, and what I said.
I also said if compounded for the 5 years the 4.85% would be the same as an APY of 5.34% if the interest is left for 5 years. At first I posted the CD would make 5.23% because my keyboard is not lit and an do my desk top while
watching TV in the dark at night. I do not work well with the numbers on a key board but worked on a keyboard and actually the old fashion adding machines in the late 50's. I was referring to compounding for the 5 years and not the APY which is for one year. Learn about the rule of 69 70 72 for investing and paying interest on loans and what you actually make on a multiple fixed rate CD or what you actually pay fixed rate on a loan or a fee with a broker. I posted a link above. I will explain it to you. You are confused with the APY which is for one year and compounding it for 5 years.
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