CD Discussion Thread

CD Discussion Thread


The NFCU “Celebration Special” six month CD becomes available today. It is a six month CD with an APY of 3%:

Link to NFCU special certificate rate page

Lifted from that page:

3This offer, including the stated APY, is effective February 4, 2019. Navy Federal reserves the right to end or modify this offer at any time. The highlighted rate is applicable to the 6-month certificate term only. Minimum purchase amounts of $1,000, $10,000, $20,000, $50,000 and $100,000. No maximum purchase amount. Additional deposits are not allowed. Penalties apply for early withdrawals from certificates. Other restrictions may apply.


Not that I sense much interest in this offering. But want anyway to mention they treated my credit card funding of the account as a cash advance and:

There was no warning or notice whatsoever the charge would be treated that way. There was also no indication at all, after I checked my CC account at Freedom CU, that the $500 charge I was seeing was, in reality, a cash advance. I only found out thanks to a telephone call to the credit union.

Obviously at only $500 this is a “no worries” situation. It was an inexpensive education. But anyone opening much larger bank or CU accounts with a credit card should be aware of what can ensue without warning.


Thanks for listing this.


Minimum purchase amounts of $1,000, $10,000, $20,000, $50,000 and $100,000.

What does the levels of minimums mean ? You have to open the CD in those increments ?


Sorry. I do not know. I, too, was unable to understand that aspect.

Your best bet, I’m afraid, is to telephone NFCU and inquire.

I would have hoped that, by now, Ken would have posted this deal . . . with an answer to your question. But Ken has not yet posted the deal.


My Player 2 opened an account with NFCU yesterday and we used a credit card to fund the $5 share account. There was a clear warning there that the credit card may treat the transaction as a cash advance. Instead of using the credit card we had intended to use, we used Chase Freedom (not Freedom CU) card as that is what I used when I opened my account in October and it was treated as a purchase.

It may have been different had it been more than the minimum $5 required for opening a share account, but it did in fact provide a warning.



Ken now has the deal

Ken has included, in his writeup, the answer to your inquiry. In short:

It is boilerplate.


Wow; Connexus CU seems to have stranded the majority of my liquid funds in Purepoint for the next 3 weeks by doing an absurd 5 withdrawals to join the CU and fund a CD (2 trial deposits they then pulled out in 2 transfers, $5 joining fee, $5 to join the association, and the CD withdrawal). Since I had a previous withdrawal from Purepoint, that’s my 6 withdrawals for the month under Regulation D (thankfully, they go by statement month instead of calendar month, so it saves me a week).

I was going to open up the 6 month NFCU and the 3 year Connexus, but I may be SOL if the rates don’t last through the 24th.


Well I’ll mention the elephant in the room…Navy Fed has released a 6 month cd paying 3%…on the surface looks somewhat appealing but how badly do you want that 1/2 a percent? Other banks may do similar offers and it will lock your money up just when you might need it available to take action with.



I believe you can actually go over the 6 transactions but there will be a fee…you might check with Purepoint regarding what the fee would be.

That’s one reason I like Ally as my banking Hub. I have a checking account opened for no better reason but to minimize the transactions that hit the savings.


I emailed Purepoint on that issue, so I’ll see what they say.

I use Alliant as my hub, where I have checking and savings, but I didn’t have the funds there to open the CD. If I had known Connexus was going to do all different transactions, I would have joined the CU with funds from Alliant and then opened up the CD later from Purepoint.


Something I’ve started using more often now…1) Tell the bank opening the cd where you want the money from and let THEM ACH it. 2) Eat a $20 wire fee.

I believe the wire may get around the limit…not sure if it was limited to 6 ACH transactions or just 6 transactions period.


It is a $10 excess activity fee for Purepoint, I believe for each transaction that exceeds the 6 allowed under Reg D.


There’s also a chance you could get that fee waived (it is a bank fee, not one imposed by the law), since the withdrawals were obviously parts of a single larger transaction with that merchant. You’re not trying to use the account as a transaction (ie, checking) account, so an exception would be appropriate. Not saying their policies would even consider such a request, but if they do grant exceptions, this situation would be the exact reason why they do.


Hey pattyb53

If you’re in Sonoma County you just fell into a 4% CD buttertub!

See Ken’s blog . . . NorthBayCU

(Sorry my knowledge of CA geography is very poor. I’m 3000 miles away and do not qualify for this one. :cry: )


shinobi, what’s happening!! Is there a movement going on in CA? I see another offer in So CA listed on Ken’s site.

I can’t believe I just opened & sent money today for a 35M CD @3.5%. This No Bay CU has several good options. I hate to go 5 yrs, but it is 4.03%. But the 3yr 3.63% is tempting… What to do???:slight_smile:


Kidding. Right? If you have access to a 4% CD it’s a no brainer!!

Such access would address my personal CD problem. But I have no such access at present.:slightly_frowning_face:


I don’t know whether to cheer for a 4% cd or not…I locked my funds in at 3.51…torn

Oh my Ally bonus money was deposited into my savings today.


Yep; they told me it is a $10 “excess activity fee” for every transaction over 6. They don’t seem willing to waive the fee, which is ridiculous, imo.


Apparently, North Bay has already lowered their rates. Their top rate is now 3.53%. The quick reversal is not too surprising considering how tiny of a CU they are (43 million in deposits, 13 employees).