Competitive Mid-Term and Long-Term CD Rates at Northwest FCU – Easy Membership
Posted on August 30th, 2009
Northwest Federal Credit Union is offering several competitive rates on its mid-term and long-term CDs. For a $25,000 minimum deposit, the new CD rates range from 2.29% APY for 24 months to 3.64% APY for 5 years as of 9/02/09. Higher rates (up 0.25%) are available to Premier Checking members and Heritage Club members. Below is a summary of the competitive rates as listed in the credit union’s rate sheet (pdf) as of 9/02/2009.
Regular and IRA Certificate Rates as of 9/02/2009: TERM APY APY APY $2.5K MIN $25K MIN $100K MIN2 years 2.24% 2.29% 2.39%3 years 2.89% 2.92% 3.02%4 years 2.97% 3.02% 3.13%5 years 3.59% 3.64% 3.74%
Rates are typically changed on Tuesdays.
Add-On Certificate
They also continue to offer two Add-On certificates. The 1-year Add-On CD rate is a little low at 1.59% APY as of 9/02/09. However, the 2-year rate is more competitive with a 2.29% APY. Minimum deposit is $500. According to the Add-on Certificate page, you have the “ability to add on deposits over the term with no minimum amounts or limits to the number of deposits.”
Those who opened these Add-On CDs in February are probably happy about their decision. At that time, the 2-year Add-On CD rate was 3.75% APY and the 1-year rate was 3.25% APY.
Certificate Details
Some important features of the certificates as described in the credit union’s Share Certificates page and in the Certificates application form (pdf) include:
- Early withdrawal penalty for terms over 6 months is 180 days of dividends on the amount withdrawn (or all dividends if closed within 6 months of opening)
- Early withdrawal penalty may be waived for those with IRA certificates who are 59½ and over
- 10 calendar-day grace period at maturity
- You can specify maturity instructions in the application (transfer to your NWFCU liquid account, mail check or rollover to new certificate)
- You can specify distribution of dividends (keep in certificate, deposit to your NWFCU liquid account or mail check)
- You can specify dividend posting frequency
Readers in my February post described ways they were able to fund the CDs. One used the online application:
While applying online, you should have the option of opening a CD and funding it at the same time by ACH. I found that option very quick and easy.
Another reader used a wire transfer:
Sent my share deposit by wire (NWFCU does not charge for incoming, and WAMU has free outgoing, so it was free) About 3 hours later I saw funds in my share account and called NWFCU, who opened the CD over the phone for me.
Also, you can utilize the shared branches to make deposits into your NWFCU share savings account. Once it’s in the savings account, you should be able to open the CD by phone. Here’s what one reader described:
great customer service at the call center, plus they have “share credit unions” all around the country (easy to fund the cd, locally).
Membership
In addition to select employer groups, credit union membership is open to members of the American Consumer Council (ACC). According to the credit union’s Who We Serve page:
If you find you are not eligible to join NWFCU via the relationships defined above, we can approve your membership with automatic enrollment in the American Consumer Council, an organization dedicated to consumer education, awareness, and economic growth. This nonprofit advocacy group was established in 1987 to ensure and protect consumers. There is no cost for you to join, nor additional paperwork. Simply select “I work for a member company or an organization” then choose “ACC” from the list of eligibility options on our membership form.
Membership requires a minimum deposit of $5 into your share savings account.
There’s an online application via Andera.com that allows you to join and open accounts online. At the start of the application, you can select how you qualify for membership as instructed above.
Branches
NWFCU’s 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 services.
Financial/NCUA Info
The credit union’s rating for safety and soundness has gone down a bit at Bankrate.com. It’s now 3 stars (performing) based on 3/31/09 data. It had been 4 stars (sound) when it was based on 9/30/09 data. Its rating at BauerFinancial remains 5 stars (superior) based on 3/31/09 data.
NWFCU is federally insured by the NCUA (Charter # 5500). It’s a large credit union with $1.7 billion in assets and 99,300 members.
Thanks to the reader who commented on NWFCU CDs in the blog hub post.
Other Competitive Certificate of Deposit Rates
- My weekly list of hot nationwide and local CD deals
- My weekly list of all nationwide CD deals
- Index of state CD and bank deals
Similar Posts:
- 4.00% APY for 5-year term CD, best cd rates with Police and Fire Federal Credit Union
- 3.00% 9-Month CD at First Priority Credit Union in MA – Local Only
- 3.25% APY for 5-year certificate of deposit with Northwest Federal Credit Union, 1 year Add-on CD at 1.52% APY
- Highest CD Rate with Neighborhood Credit Union at 4.00% APY for 60-month CD
- Northwest FCU 3.65% 5 Year CD
Tags: Cd Rates, Northwest
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