1.00% APY for 12-month CD Term from Justice Federal Credit Union

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.


5 Certificates in One Maturity Term from State Employee’s Credit Union

March started out with a few CD rate cuts here and there, especially with for terms that last for more than a year or so. Despite these lay-offs, interest rates from State Employee’s Credit Union remained competitive – even without making any changes.

Since the beginning of August last year, SECU has begun offering an APY of 1.00% for both 6-month and 1-year CD terms. Despite the many changes the market has experience for the past six months, it has remained unaffected through the inevitable minor fluctuations in the economy. Here are the rates they offer with from their certificates of deposit accounts:

TERM APY

6 months – 1.00%
12 months – 1.00%
18 months – 1.00%
24 months – 1.25%
30 months – 1.25%
36 months – 1.50%
48 months – 1.75%
60 months – 1.75%

SECU’s APY for the 6-month CD term is one of the best offers you can get from such financial institutions. This high rate makes it very desirable for anyone wishing to get quick interest from a certain amount of deposit. The same can be said for their 1-year CD term. The 1.00% interest is at par with Ally Bank’s current 1.02% APY, and certainly much better than the same bank’s 0.74% 6-month APY.

Ladderized Share Term Certificate

SECU offers a unique take on customizing your CD terms. If you are willing to invest for long-term, you can take advantage of the ladderized STC offer. It works by dividing your total investment into five equal parts, which will than take on 5 different maturity terms. What happens is that you get to have one certificate that matures every year. For each year, there is a corresponding APY, which means that you get five different interest rates annually. By the end of the 5-year term, you then get to collect all five matured term certificates. This amount can add up to more than the amount of a regular STC APY.

You may also choose the regular STC if you wish. Opening a CD account for both types require a $250 minimum deposit. In the case of the ladderized STC, this gives a total amount of $1,250, one for each corresponding year. All rates are fixed for the whole maturity period. Although the interest is not compounded daily, it certainly accrues. Once the interest is earned, the amount is automatically transferred to the member’s choice of account. Renewal may also be done if he/she chooses. On the other hand, although the ladderized STC follows the same process, renewal can take effect only after the 5-year period.

If you choose to close the account, a penalty is incurred, save for the grace period of auto-renewals. In the ladderized account, early withdrawal is subject to failure of the consumer to get the full benefits from the investment structure.

The ladderized type account is not without flaws, however. With this type, you have to be willing to wait out the full 5 years before you reap the rewards. If you’re the impatient type, then signing up for a regular CD term may be more suited for you. Whatever it is you choose, always make sure that you know where to spend the investment money is for. This way, you can make the most rational decision on what type of account really suits your need.