Florida Credit Unions with Respectable Rates on 5 Year Deposits

After a BankVibe.com reader notified us on a competitive 5 year CD coming from a regional credit union based out of Florida, we conducted a little further research an outed a few more noteworthy long term CD rates (with 5 year terms, to be exact) coming from credit unions in Florida.

Although we wouldn’t necessarily recommend locking your money into a 5 year CD in this miserable landscape for FDIC-seeking-savers, we still thought we’d highlight them since they’re beating the national average by such respectable margins.

Before we mention the top 3 however, we’d like to state that these are fairly exclusive, regionally operated credit unions. It may be difficult to join if your individual circumstance (ie place of work, residence, family ties, etc) doesn’t meet their targeted market. That being said, if you do fall into their list of selected employers, have family members that do, or reside in their area of regional operation, it’s certainly worth a shot at applying for membership. Check with the individual institutions’ website or give them a call for further clarification.

Top Rates on 5 year CDs from Florida Credit Unions:

(Rates accurate as of October 2011.)

- American Airlines Federal Credit Union (Miami, FL) has a 5 year CD yielding 2.78% APY with a minimum deposit requirement of $10,000. Visit aacreditunion.org or call (800) 533-0035.

- United Police Federal Credit Union (Miami Beach, FL) has a 5 year CD yielding 2.58% APY with a minimum deposit requirement of $1,000. Visit unitedpolicefcu.com or call 1-800-609-3277.

- Saint Joseph’s Hospital Federal Credit Union (Tampa, FL) has a 5 year CD yielding yielding 2.30% APY with a minimum deposit requirement of $1,000 required. Visit sjhfcu.org and use their contact form for further inquiries regarding membership.

To put the annual percentage yields in perspective, the national average for 5 year certificates of deposit sits at roughly 1.78% APY.

Best 5 year CD rates inching over 3.0% APY

You wont find any online banks offering 5 year CD rates over the 3.0% APY threshold, however, your local credit union may be able to lift your interest rate above that mark. An example of this was sent in yesterday by BankVibe.com reader Ian who noted a substantial offer from his local credit union. If you happen to be able to take advantage of First People’s Community Federal Credit Union of Maryland’s 5 year CD rates you could currently lock in an APY of 3.10%. Although we wouldn’t recommend locking in a long term CD rates in today’s market given the historically low interest rate levels, we still thought we’d make note of this offer considering the national average for these products sits at a measly 1.80% APY.

A slight draw back with First People’s Community Federal Credit Union’s 5 year CD is that their is a fairly steep minimum deposit requirement of $5000. Compare this with most online banks and you’ll find that the online institutions offer much more leniant minimum deposits (if they even make such requirements at all).

If you looking for slightly shorter maturities from FPCCU they also have a 21-month CD special earning up to 2.10% APY) and a 39-month CD earning 2.60% APY.

Who can join First People’s Community Credit Union?

First Peoples Community Federal Credit Union serves any persons who live or work in Allegany County, Maryland, Garrett County, Maryland, Somerset County, Pennsylvania or Mineral County, West Virginia. Membership is also available to Verizon employees that headquartered in the counties of Frederick, Washington, Allegany, and Garrett in Maryland.

Check out the best 5 year CD rates from our database to find available products near you.

Top 5 year CD rates go to Melrose Credit Union

The top 5 year CD rates which are offered nationally come from Melrose Credit Union. MCU (based out of New York) has been highlighted on BankVibe.com several times for there unusually high savings rates on deposit products. They topped the 1 year CD rate list for sometime a while back and now have the most competitive rates available for 5 year terms. Currently with a “share certificate” and a minimum deposit of $5,000 you can walk away with a CD yielding 3.03% APY with MCU.

And although MCU is a credit union, they don’t place many obstacles in the way for joining as most credit unions do.  Becomming a member and then setting up a CD account is fairly easy.

You’ll need:

1. Driver’s license for yourself and each joint owner. Birth certificates or school IDs are permissible for EZKidz child account owners.
2. Social security number for yourself and each joint owner
3. Name, address, date of birth, and social security number of any beneficiaries

There is also a $1.00 membership fee and a $25.00 minimum opening deposit required.

Complete List of CD Rates Offerd Through Melrose Credit Union (Share and IRA CDs):

Terms and Conditions;

An early withdrawal penalty applies to all Share Certificate Accounts. All new share certificate purchases and renewals will compound dividends quarterly. The interest rate will be determined in the same manner as other share certificates, however due to the compounding there will be an APY on share certificates which is different than the rate. Please note that members will still have the option of having their quarterly dividend transferred to another share account. The minimum purchase for Share Certificates is $5,000. The minimum purchase for IRA Share Certificates is $4,000. Visit Melrose Credit Union for further info.

Police and Fire Federal Credit Union offers top CD rates

Thanks to BankVibe.com reader Tim for submitting one of the highest yielding 5 year CD rates in the country. As of May 20, 2010, if you are eligible to join Police and Fire Federal Credit Union, you can lock in a 5 year CD at 4.0% APY. The minimum deposit required is just $500 and they offer this rate for both traditional 5 year CD’s and for IRA CDs.

Police and Fire Federal Credit Union has locations throughout Pennsylvania and can accept any active or retired Philadelphia police officer or firefighter and their family members. They also accept those employed by a select group of businesses and organizations in the Philadelphia region.

Current CD Rates offered through Police and Fire Federal Credit Union:

- 5 years 4.00% APY
- 4 years 3.50% APY
- 3 years 3.00% APY
- 30 months 2.50% APY
- 2 years 2.25% APY
- 18 months 1.50% APY
- 15 months 1.45% APY
- 1 year 1.40% APY
- 9 months 1.35% APY
- 6 months 1.25% APY
- 3 months 1.20% APY

Terms and Conditions:

- You will be paid the interest rate until first maturity.

- Compounding frequency: Unless otherwise paid, dividends will be compounded every month.

- Crediting frequency: Dividends will be credited to your account every month. Alternatively, you may choose to have dividends paid to you or to another account every month rather than credited to this account.

- Dividend period: For this account type, the dividend period is monthly.

Minimum balance requirements:
The minimum balance required to open this account is $500.00.
The minimum balance required to open the Jumbo Certificate is $50,000.00.

- Average daily balance computation method: Dividends are calculated by the average daily balance method which applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the balance in the account for each day of the period and dividing that figure by the number of days in the period.

Long Term Bank CD’s (certificates of deposit): Should I Invest?

Although we’ve seen long term CD rates tick upward ever-so-slightly over the last month or so, we still maintain the stance that you should resist the urge to move forward with these products based on tiny rate hikes. Many banks have been throwing their net out into the plentiful sea of eager savers in an attempt to catch a fresh batch of customers using their small rate hikes as bait. Sure, earning an FDIC insured 3.0% per year might seem favorable to those looking for the best CD rates – even if it means keeping your money tied down for 3-5 years, but you must look beyond the short term gains. While the highest yielding long term CD’s might seem attractive for the first year or two, the latter years will leave you with very little (if any) gains.

Why?

First, almost all financial analysts suggest we are headed towards a time of rather steep inflation (not to mention a 3% inflation rate is considered average by most analysts). The only debate on this matter is WHEN it will kick in. Second, taxes paid on interest and investment gains stand to eat at your more handsome looking profits in the short term. And third, we are at the end of a steep valley in savings rates. And as a general rule of thumb, you normally want to lock in long term CD’s when the market has peaked and is beginning to trend downward, not the exact opposite – which is what we are currently enduring.

Not convinced? Still think long term CD’s are a good investment strategy? Take a look at Chuck Jaffe, of MarketWatch.com’s article entitled “Stupid Investment of The Week: Don’t go long on CD rates now” for further evidence.

In the article he suggests seeking a “Rewards Checking Account” if you are looking for an FDIC insured investment vehicle with phenomenal returns and decent flexibility – a suggestion we made early this year by proclaiming Rewards Checking Accounts as the best FDIC insured investment vehicle of 2009.  After you’ve learned the basics of those accounts you can stack them up against the current 5 year CD rates to help you make an educated decision.

Additional Note: We also think Cash Back Checking Accounts are a great way of having your money work for you by providing monthly dividends in the form of cash back.

Best 7 year CD rates paying around 4% APY

The highest yielding 7 year CD rates have taken a pretty big hit over the last few months just like CD rates with shorter terms. Today, the top rates for deposits with 7 year maturities sits at 4.0% APY depending on how much you can invest.

Pentagon Federal Credit Union out of Alexandria, Virginia tops our list for seven year deposits, providing a 4.0% APY. PFCU has branches throughout Virginia, New York, New Jersey, and the DC area. They also have locations in the west – serving Colorado, Hawaii, and Texas. You must make a minimum deposit of at least $1,000 to open a deposit account with PFCU. 

For 7 year CD’s which are available to customers nationwide, USAA bank currently tops our list for highest yields. Their 7 year CD, with a deposit amount of $1,000 to $94,999, yields 3.85% APY, however if you can manage to qualify for their “super jumbo CD” (minimum deposit of $175,000) you can earn 4.16% APY. 

Some other noteworthy long-term CD rates come from Navy Federal Credit Union and America First Credit Union. They offer 7 year CD’s and 5 year CD’s, respectively, with yields of 3.85% APY and 3.10% APY.

Best 5 year CD rates paying 3.80% APY

The best 5 year CD’s (certificates of deposit) which are nationally available are currently paying 3.80% APY. However, depending on where you live you may be able to find slightly better interest rates.

The top 5 year CD (nationally available) currently goes to Melrose Credit Union. Since Melrose Credit Union has an open New York State charter there are no geographic or group affiliation field of membership restrictions. So, regardless of where you live or how you earn a living, you may qualify for membership.

Membership Requirements for Melrose Credit Union:

There is a $1.00 one time membership fee and a minimum opening deposit of $25.00. The minimum deposit required to open their certificates of deposit is $5000. Individuals must provide:

• Valid Photo ID (Driver’s License, Non-Driver ID, Passport)
• Proof of Address (Utility Bill)
• Social Security Number

Best CD rates in New Jersey

Below are the top 5 banks offering the highest interest rates on certificates of deposit in New Jersey. Keep in mind that you will receive a much higher rate if you opt for a longer maturity. The 60 month CD has some of the highest yields currently because of it’s maturity length. You may also want to check out some national rates if your local ones are a tad below the average. Compare CD rates from our archive vs. the local banks in New Jersey (below).

Click on the institution links below to view their rates page.

1. Hamilton Horizons Federal Credit Union: 4.00% APY for a 60 month term. HH is a member-owned organization that was formed in 1955. They do not give any geographical requirements as far as membership goes on their website. Contact: (800)449-3221
2. NVE Bank: 3.85% APY for a 60 month term. NVE received a 5 star rating from BauerFinancial and claims (on their website) that they don’t need to be rescued (ie bailed out). Contact (201)816-2800
3. Magyar Bank: 3.69% APY for a 60 month term. Magyar Bank notable fact: Formed in 1922 by Hungarian immigrants. Corporate headquarters in New Brunswick, New Jersey. Contact: (732)342-7600
4. Bank of Princeton: 355% APY for a 60 month term. The Bank of Princeton is a new bank serving the New Jersey area. They were formed in 2005 and raised 30 million in start up captiol. They started with 12 employees and now have upwards of 40. Contact: (609)454-0116
5. Roma Bank: 3.55% APY for 60 month term. Roma Bank was formed in 1920 and its founders were public-spirited citizens of Italian ancestry responding to the need to help their fellow Italian immigrants become deeply rooted in their communities through home ownership and sound thrift and savings habits. Contact: (609)223-8300
   

Check with these institutions for minimum balance requirements as well as possibly eligibilty requirements. The national average for CD rates sits at roughly 3.00% APY for maturities of 5 years.

Discover Bank’s 5 year CD rates VS. local bank rates

For shorter term certificate of deposits, say 6 months to 18 months, I have found that may local credit unions and banks are offering some of the best rates available. Today though, I looked into some of the longer term certificate rates in my area as well as a few other major cities along the west coast and found that Discover Bank (who opens it’s doors to customers nationwide) has long term CD rates that are trouncing some of these smaller thrifts.

5 Year Certificate of Deposit with Discover Bank

(Rates effective as of yesterday, 6/23/2009)

• earn 3.50% APY with a $2,500 minimum balance
• no fees associated with this account (besides penalty for early withdrawal)

How does Discover Bank’s 5 year CD rate stack up against the competition?

After comparing this rate to some local lenders in Los Angeles, Portland and Seattle, I found Discover Bank’s offer to beat all of the best 5 year CD rates listed in those areas.

Seattle: Best local Offer – HomeStreet Bank 5 year CD yielding 3.40% APY

Portland: Best Local Offer – Wells Fargo 5 year CD yielding 3.00% APY

Los Angeles: Best Local Offer – Lajolla Bank 5 year CD yielding 3.45% APY (this account comes with a $10,000 minimum deposit)

Montauk Credit Union’s CD (certificate of deposit) rates

Thanks (again) to BankVibe reader and contributor FarmerFrank for pointing out some very nice CD rates this time coming from a credit union in New York state.

Montauk Credit Union is a non-profit, member-owned, financial institution with roughly 4,500 members and $50 million in assets. They were chartered in 1922 and open serve customers nationwide. To become a member you will incur a one-time fee of $25.00, after that there are no fees associated with Montauk CU.

Current CD Rates:

12 month CD: 2.75% APY

18 month CD: 3.00% APY

2 year CD: 3.25% APY

3 year CD: 3.50% APY

4 year CD: 3.75% APY

5 year CD: 4.00% APY

7 year CD: 4.50% APY

Rates in effect as of 5/01/09 and are subject to change without notice.