High(er)-rate CD deals

[Debinnov a]

Can anyone tell me if I will be covered by more than $250k NCUA deposit insurance by having an IRA and non-IRA account that combind are more than $250k? Or is it all inclusive? Trying to determine if I can open a non -IRA account (already have IRA account at Andrews).

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[meierlde]

To answer here is a link to the NCUA site with FAQs on insurance coverage:Share Insurance Estimator - FAQ

And here is the specific FAQ answer "What is meant by certain retirement accounts?
These are share accounts owned by one person and titled in the name of that person's retirement plan. The following types of retirement plans are insured in this ownership category:

• Any individual retirement account described in section 408(a) (IRA) of the Internal Revenue Code (26 U.S.C. 408(a)) or similar provisions of law applicable to a U.S. territory or possession;
• Any individual retirement account described in section 408A (Roth IRA) of the Internal Revenue Code (26 U.S.C. 408A) or similar provisions of law applicable to a U.S. territory or possession; and
• Any plan described in section 401(d) (Keogh account) of the Internal Revenue Code (26 U.S.C. 401(d)) or similar provisions of law applicable to a U.S. territory or possession.

All IRA and Roth IRA shares that an individual has in the same insured credit union are added together and the total is insured up to $250,000. Keogh accounts are insured separately up to $250,000.
Note: Naming beneficiaries on a retirement account does not increase share insurance coverage.


So it works the same way as FDIC that how acounts are named i.e. the names on the accounts determine what coverage is, for example if you have a POD account and a single account thats 2x coverage. The faq has a lot of detail on what is what

On retirement accounts "Certain Retirement Accounts

1. What certain retirement accounts are insured?
   Certain Retirement accounts are a separate account ownership type, and include shares in the following types of accounts:
   • Any individual retirement account described in section 408(a) (IRA) of the Internal Revenue Code (26 U.S.C. 408(a)) or similar provisions of law applicable to a U.S. territory or possession;
   • Any individual retirement account described in section 408A (Roth IRA) of the Internal Revenue Code (26 U.S.C. 408A) or similar provisions of law applicable to a U.S. territory or possession; and
   • Any plan described in section 401(d) (Keogh account) of the Internal Revenue Code (26 U.S.C. 401(d)) or similar provisions of law applicable to a U.S. territory or possession.
2. How are certain retirement accounts insured?
   IRA and Roth IRA accounts will be combined together and insured in the aggregate up to $250,000. A Keogh account will be separately insured from an IRA account, Roth IRA account or, where applicable, aggregated IRA and Roth IRA accounts.

 

[Earl E Retyre]

Can anyone tell me if I will be covered by more than $250k NCUA deposit insurance by having an IRA and non-IRA account that combind are more than $250k? Or is it all inclusive? Trying to determine if I can open a non -IRA account (already have IRA account at Andrews).

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I believe that if you and your spouse are both on the CD as a joint account then you are covered up to $500k.

And, according to, https://www.ncua.gov/legal/guidesetc/guidesmanuals/ncuahowyouracctinsured.pdf,
"a two person joint account with no beneficiaries has $500,000 in coverage. This coverage is separate from and in addition to the coverage available for other accounts such as individual accounts with no beneficiaries and retirement accounts."

 

[REWahoo]

This will explain NCUA insurance coverage: https://wallethub.com/edu/ncua-fdic-insurance-limits/10877/

 

[jazz4cash]

NFCU
Wow. Their CD rates are essentially flat (1.5% 7yrs) but they have a special 17mo @ 2pct.
Details here:

https://www.navyfederal.org/products-services/checking-savings/certificates.php

 

[tigerman2]

First Republic. 1.5% For a 17 month. CD.

 

[FIREd]

I recently purchased a 5yr CD @ 2% from Capital One 360 (6-month interest penalty for early withdrawal).

 

[Earl E Retyre]

https://www.andrewsfcu.org/personal/checking-and-savings/share-certificates.html. See specials.

Andrews still offering 3% CDs with 6 mos early withdrawal for 7 year CD or 3% for 3 month CDs

 

[audreyh1]

https://www.andrewsfcu.org/personal/checking-and-savings/share-certificates.html. See specials.

Andrews still offering 3% CDs with 6 mos early withdrawal for 7 year CD or 3% for 3 month CDs

You have to click on the "specials" tab to see those rates.

 

[FIREd]

So I tried to sign up for Andrews FCU 7yr @3% holiday deal and they only allow me to transfer up to $1,000 from my external checking account to fund it. Anyone else with this problem?

 

[braumeister]

I've always found the Andrews online infrastructure fairly primitive.
They would really rather you mailed them a paper check.

 

[Earl E Retyre]

So I tried to sign up for Andrews FCU 7yr @3% holiday deal and they only allow me to transfer up to $1,000 from my external checking account to fund it. Anyone else with this problem?

Yes. We opened a membership account with $5. We then did a large bank wire into that account. We then called on the phone and said we wanted to open several CDs and they opened the CDs and transferred the funds from the membership account to the CD accounts.

We opened multiple CDs. Although the terms say you can withdraw partial amounts, we decided to open multiple CDs anyway.

It was fairly quick and easy to do albeit multiple steps. The phone customer service person was very good. The website is better than some of the other credit unions we have dealt with. And they sent us paperwork documenting each CD and terms and conditions.

3% is the best rate I am aware of these days. If interest rates rise quickly, we can always take the 6 months penalty and open up new ones.

 

[kaneohe]

So I tried to sign up for Andrews FCU 7yr @3% holiday deal and they only allow me to transfer up to $1,000 from my external checking account to fund it. Anyone else with this problem?

Do you have a credit union with the shared branch feature near you.......I think its the CO-OP brand? You can deposit a physical check there and it's as if you are depositing it in your Andrews share acct. Very nice. It's viewable by Andrews folks right away so you can call soon after to fund your CDs. My personal experience, tho, is that the day shift is the one on the ball and later you get the second team that doesn't know how to do many things so you
should try to get things done early.

If my understanding is correct, my personal (not cashiers ) check was deposited and then invested in CDs the same day and will start earning interest
despite the hold that is on the funds. I think the hold is just to prevent you removing those funds.

You can google for CO-OP and then verify with the local branch that they can
do what you want. Be sure its a place where the tellers can help you. Some CO-OP folks only participate via ATM machine and I'm not sure if you can do what you want there. You might but you won't be able to ask the machines questions for comfort.

 

[Debinnov a]

FIREd,

I already had a basic account and Andrews FCU and a 3% IRA CD. I just learned about the 3% non IRA CD and moved six figures from Ally Savings to Andrews with no problem. Initiated the ACH from Ally Bank, though - not Andrews. Then I had to just call them to purchase the CD.

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[FIREd]

Thanks for all the great information! I have not received my membership account number yet (application still pending), so I have to wait for that. It looks like I can either do a ACH transfer or wire transfer initiated from my bank (no co-op branch near me, only ATM). Or I could mail a paper check. I just hope that I won't miss out on the special rate because of the delay!

 

[kaneohe]

Thanks for all the great information! I have not received my membership account number yet (application still pending), so I have to wait for that. It looks like I can either do a ACH transfer or wire transfer initiated from my bank (no co-op branch near me, only ATM). Or I could mail a paper check. I just hope that I won't miss out on the special rate because of the delay!

You may want to be a bit pro-active re: membership number. After 6 days
and and same application pending status, I called them and got a helpful rep
who fired off an e-mail to somewhere. Next day I was approved. Coincidence or not.....who knows , but it doesn't hurt. Again, try to call during eastcoast day shift.....the night shift seems to be lower quality........others seem to have had the same experience.

You may also want to talk to them about the CO-OP ATM process. I know I used to deposit checks at the local CO-OP ATM and it used to show at
Alliant CU right away, even on wkends. They did have a ?? 20K/day limit.....might have been Alliant's limit, not sure. Perhaps that process will work for you and your comfort level.......or not . It's been a while since I did that but they must have been a way to select the destination CU and then all you would need is your acct. no. and perhaps a PIN. I did feel a lot better
this time dealing w/ humans tho.

I know how you feel........seemed like 3+ wks in Dec. was not enough time but for me, the whole situation turned around in 2 days and (a few) telephone calls.
I even remembered on the way home from the CO-OP shared branch that I had forgotten to read my own reminder to make sure I had enough funds in my external m.mkt fund.........drove a bit faster and called the other bank to transfer from saving to m.mkt to cover the check I had just deposited. Hope I did it in time.

 

[Al18]

I've been an Andrews FCU member for many years, and have always found their service excellent when you call them or discuss in person. If it's taking more than 3 days to open a CD on-line, I encourage calling them directly if you're not local to a branch.

 

[FIREd]

OK, I called Andrews FCU this morning. My application for membership is still pending, so I have to wait a few more days before I can go ahead with the money transfer. The phone rep gave me the address of a local credit union branch which participates in the CO-OP system. As soon as I am approved and I get an account number, I can deposit a check at that branch for same day credit to my Andrews account. So I will probably go that route. Fingers crossed.

 

[djr59]

Yes. We opened a membership account with $5. We then did a large bank wire into that account. We then called on the phone and said we wanted to open several CDs and they opened the CDs and transferred the funds from the membership account to the CD accounts.

We opened multiple CDs. Although the terms say you can withdraw partial amounts, we decided to open multiple CDs anyway.

It was fairly quick and easy to do albeit multiple steps. The phone customer service person was very good. The website is better than some of the other credit unions we have dealt with. And they sent us paperwork documenting each CD and terms and conditions.

3% is the best rate I am aware of these days. If interest rates rise quickly, we can always take the 6 months penalty and open up new ones.

How did you do the large wire?
Their website says only $1005 allowed.
I want move like $300K there

 

[Dave J]

I did a wire for about 1/3 your amount a few months ago. Also, you are not confusing an ACH with a bank wire, are you? A wire costs like maybe $20 and a ACH is usually free. No insult meant if this offends you me asking.

 

[Earl E Retyre]

I believe we had to initiate a wire from our bank into Andrews since the ACH had the limit and the wire did not. Yes, it cost us a $20 wire fee but we were happy to get the 3% so did not mind. We also did several hundred thousand. The alternative would have been to drive a check over to one of their branches.

 

[audreyh1]

FIREd,

I already had a basic account and Andrews FCU and a 3% IRA CD. I just learned about the 3% non IRA CD and moved six figures from Ally Savings to Andrews with no problem. Initiated the ACH from Ally Bank, though - not Andrews. Then I had to just call them to purchase the CD.

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Yeah - I was considering initiating the ACH from Ally Bank, but since I don't have an account at Andrews yet it will take a while to setup the link to Ally Bank. They do the trial deposits thing, and that can take 3 business days.

Well, it's only Dec 11.

 

[kaneohe]

Yeah - I was considering initiating the ACH from Ally Bank, but since I don't have an account at Andrews yet it will take a while to setup the link to Ally Bank. They do the trial deposits thing, and that can take 3 business days.

Well, it's only Dec 11.

You might consider the shared branch feature....I think it's called CO-OP.
You can google to find who is in the network or Andrews can tell you.....perhaps even on the website. If you can write a check (eg m.mkt ), you can take it to the shared branch the same day you get your member number, have it deposited, then call Andrews to direct it into the CD. Best if you can do it during the day shift at Andrews since they appear to be more aware of things.
No charge for the service, no need for cashiers check or wire charges. Some of the CO-OP links are ATM only. You have more flexibility if you can go to a teller.

 

[audreyh1]

You might consider the shared branch feature....I think it's called CO-OP.
You can google to find who is in the network or Andrews can tell you.....perhaps even on the website. If you can write a check (eg m.mkt ), you can take it to the shared branch the same day you get your member number, have it deposited, then call Andrews to direct it into the CD. Best if you can do it during the day shift at Andrews since they appear to be more aware of things.
No charge for the service, no need for cashiers check or wire charges. Some of the CO-OP links are ATM only. You have more flexibility if you can go to a teller.

Thanks.

The funds are in savings accounts - no check writing.

 

[kaneohe]

https://www.andrewsfcu.org/personal/checking-and-savings/share-certificates.html. See specials.

Andrews still offering 3% CDs with 6 mos early withdrawal for 7 year CD or 3% for 3 month CDs

They also have a 3% 6mos CD. Not listed in the specials and even some reps are not aware of them.