Certificates of deposit certainly make a lot of sense for people who want a low-risk investment. You might want to save up for a new car or a new house, but don’t plan on making the purchase anytime soon. In this case, tie up your money with a credible lending institution that earns a better return for less risk.
Justice Federal credit union is one of the many companies that offer highly competitive CD rates. At its 1-year term, it gives a 1.00% APY. This type of term is most popular among the consumers, since it gives them just the right amount of buying time for interest growth, and not run the risk of losing too much money. Plus, your money is safely insured.
This one-year term is more than at par with the national average of 0.67%. Although it still lags behind other banking giants such as CIT bank’s 1.08% and Ally bank’s 1.020%, JFCU certainly comes close to these rates. This makes JFCU very competitive, ensuring you get the most out of your investment.
Here’s a look at some of their other rates:
For a 60-month term, you get a 2.25% APY.
For a 48-month term, you get a 1.80% APY.
For a 36-month term, you get a 1.50% APY.
For a 24-month term, you get a 1.20% APY.
For an 18-month term, you get a 1.10% APY.
For a 6-month term, you get a 0.60% APY.
For a 3-month term, you get a 0.45% APY.
JFCU requires a minimum deposit of only $500 once you decide to open an account with them. Upon doing so, your account will start earning the interest from which the APY is based on. The interest money, which is compounded monthly, is placed to your account every three months. At this time, you also get statements from your account to keep you updated.
Once the account reaches maturity, you can opt to withdraw all total earnings or make another investment. It all depends on your immediate needs.
Although you get to earn more when you invest in a longer-term CD, you must be sure you won’t need that amount before the full period is over – or else the penalty fees you incur may significantly slash down what you could’ve earned in full. For a 1-year CD term and less, the penalty is 90 days less of the total dividends. Meanwhile, CD terms more than a year have penalties of more than 180 days.
JCFU has branches all across the country, so check out the nearest branch to avail of their incredible CD offers.