Thanks to BankVibe reader MarketWatch who pointed out a few 12 month certificate of deposits yielding rates above 3.0% APY.
Currently Southwest Federal Credit Union of Dallas, Texas has two very noteworthy 1 year CD’s. The first is a 12 month jumbo which carries a $75,000 minimum deposit. The yield on this jumbo CD is 3.25% APY (national average for 1 year jumbo’s is 2.25% APY). The second one is equally impressive. It is a 12 month CD with an APY of 3.15% and it carries a minimum balance of $1,000 (the national average for 1 year CD’s is 2.10% APY).
As you may know, it is typically difficult to become a member of a credit union if you are not affiliated with the appropriate companies, industries or zip codes. Fortunately, acceptance into the Southwest Airlines Federal Credit Union is slightly broader.
Visit their website for a complete list of member companies (ie. if you work for one of the companies on their list it will almost guarantee you a membership with their credit union). Also if you reside in the state of Texas you may be eligible as well, but you need to contact a representative.
You may find branch locations in Dallas, Texas, Euless, Texas, Houston, Texas, Mesquite, Texas and Phoenix, Arizona.
Rates are subject to change and effective as of February 23, 2009. Penalty for early withdraw.
Southwest Airlines Federal Credit Union is usually one of the leading credit unions in the country for interest rates, however they have kept their credit union relatively exclusive over the years. We’ve seen many credit unions with a national presence broaden their acceptance lately but Southwest Airlines FCU still has not.
Expect interest rates in general to dwindle while we try to climb out of our recession. The FED has made it fairly clear lately that they are planning on having interest rates sit at incredibly low levels to help stir up borrowing by individuals and businesses. This offer from Southwest Airlines Federal Credit Union is certainly a good one, but you may want to lock in longer term deposit to hedge against future declining rates.