If your Sun East CD matured and you are now playing “keep alive”, this might be of interest. The following is from a Sun East disclosure:
Inactive Accounts. All member accounts which do not have a member-generated transaction after six (6) months are considered dormant. The posting of dividends does not count as a member generated transaction. Dormant accounts of members age 18 and over, with less than $500 in deposits (excluding IRAs), no loans, no credit card and no delinquent loan will be assessed a monthly Dormant Account Fee (See Schedule of Fees and Charges).
The bolding there is my own. Whereas many financial institutions require activity once per year, at Sun East it is an every six months requirement. So if your CD matured, and you’re now keeping a Sun East account alive, it’s gonna require a bit more than the customary amount of tending.
Agreed. I went substantially over the NCUA insurance limit with these CD’s in an IRA account. Normally, I would never do that, but its NFCU and those rates were too good to pass up. Took advantage of the Sharonview deal but missed the Garden one unfortunately. I also have a lot of money in the Achieva IRA CDs which are over 4%.
Thank you for posting, pattyb53. I saw mention of that elsewhere late yesterday. But when I went to the NASA FCU rate sheet it was still showing the 1.5% rate . . . so I did not post.
But as of this morning their online rate sheet has, indeed, been updated. It is now showing the lower rate of interest. They probably had too much money incoming at the higher rate.
Sad but true: 1.4% APY is quite a competitive rate for a CD today, especially a four year (plus one month). Things are not at all good out there, and they show at this point no signs of improving.
For example, pattyb53:
I know you’re a Hanscom member (if you recall they took you but wanted no part of me). Anyway, Hanscom for years was the rate leader when it came to four year certificates. Their rate was very competitive. I checked just now for the “halibut”:
The current Hanscom rate on their four year CD is 0.8% APY!! And they label that a “special” rate!!
This is a special post for PenFed CD holders. If you do not participate at PenFed, you can skip this.
It is my misfortune to have a PenFed CD maturing on 29th of this month. That is a Saturday. The CD, seven years ago, started life as a Valor (Tobyhanna) CD.
I figured I would pull the PurePoint. trick because 31st of this month is Memorial Day. Fuggetaboutid.
Turns out PenFed is unlike other financial institutions. They pay interest on day of maturity. This messes things up royally. My CD funds which nominally mature on that Saturday will not be available for withdrawal until the following Tuesday. There is nothing I can do about it and the PurePoint. trick avails me nothing in this special situation. In fact, PenFed does not even promise the funds will be liquid on Tuesday!!
I tried to finagle a penalty-free early withdrawal . . you know . . using the pandemic as my excuse. No dice. PenFed is tough. I will just have to take my medicine and wait to get my dough.
Other old Valor (Tobyhanna) members might also be facing CD maturities at PenFed. Stay on your toes!
It’s happened to me, I hate when the CD’s mature on Sat. Last month my Sun East CD’s matured & they offered to roll over @ 1.50% for same term. Wasn’t that nice?
NFCU is offering a bonus to open an easy start CD for military appreciation month. It’s not much but hey - free money is free money.
**$30 Bonus on a New EasyStart or Special EasyStart Certificate
Open a new EasyStart or Special EasyStart Certificate and get a $30 bonus after you make 3 automatic transfers. Start with as little as $50 and watch your savings grow with an APY as high as 3.00%.
They’re pretty slow over there at NASA FCU. Today I got an email from them that my account was opened & including my account number. I originally used my Citi DC card $500 in the process. So there it sits in Savings @ .10%.
If really interested in that 49 mo CD (now 1.40%) I could call & see if they would honor the 1.50%.
My question of folks around, should we consider a 4yr CD 1.50% a good investment? Or think that rates will start to move up sooner rather than later?
Personally I wouldn’t lock up my money @ 1.5% for 4 years. I have moved matured CD money into MYGAs and some into Toyota Income Driver Notes @ 1.5%. The TID notes have more risk than FDIC but it is liquid and can be redeemed at any time.
I agree. Especially with the recent uptick in inflation. More liquid money options are not that much lower rate so the premium for locking your money up for 4 years doesn’t seem worth it to me. But nobody has a crystal ball. 3% APY did not sound that great 2 years ago…
MYGAs are like CDs, and sure you are locked to the term you invested. Since last summer, I have bought 3yr, 4yr and 5yr MYGAs, and obtained an average APY around 3%.
Membership in SRP Federal Credit Union is open to individuals who belong to the Association of the United States Army (AUSA) or the Savannah Riverkeeper association, regardless of residency status. Individuals who live, work, worship, volunteer, or attend school in the South Carolina counties of Aiken, Allendale, Barnwell, or Edgefield, or the Georgia counties of Burke, Columbia, Jefferson, Lincoln, McDuffie, or Richmond also qualify.
