Locking your money up for months might sound like a big sacrifice. But it can be a good way to earn extra interest.
At INOVA Federal Credit Union, for instance, you can buy a 14-month CD that pays 1.75 percent APY. You won’t find a savings account with a yield that high.
The interest rate is 5 basis points higher than the 12-month CD rate at Crestmark Bank. And it’s 10 basis points higher than the 12-month CD rate offered by Goldman Sachs Bank. A basis point is one-hundredth of a percentage point.
|Goldman Sachs Bank USA||1.65%||$500|
|M.Y. Safra Bank||1.63%||$5,000|
|First Internet Bank of Indiana||1.62%||$1,000|
The fine print
Savers who deposit at least $100,000 of new money will receive a $75 Visa gift card. But you only need $200 to qualify for INOVA’s 14-month CD special. That makes the deal great for anyone with very little money to put away.
As with most other CDs, there’s an early withdrawal penalty. For the 14-month CD it’s 180 days’ dividends. But if you pull the money out of your account within a week, for example, that will cost you at least seven days’ dividends.
How to join
Though it’s headquartered in Elkhart, Indiana, membership at INOVA is open to savers nationwide. Joining the credit union is possible through two not-for-profit organizations: Tru Direction and the Elkhart River Restoration Association.
You’re also eligible for membership if you:
- Are an immediate family member or household member of an existing member
- Work for the credit union
- Worship, live, attend school or work in an approved geographic area
- Work for one of the credit union’s member companies (there are more than 500), such as Bayer and Goodwill Industries
New members must pay a one-time $10 membership fee. You’ll also need to deposit $5 into a savings account to secure your membership.
How to buy INOVA Federal Credit Union CDs
CDs are available for purchase through INOVA’s website or at one of its branch locations.
Applicants must be at least 18 years old (or have an adult with ownership rights to your account if you’re a minor). You’ll also need:
- A Social Security number
- A debit card, credit card or check to fund the new account
- The name, date of birth, Social Security number and address associated with your beneficiaries
If you froze your credit report following the Equifax data breach, you’ll need to unfreeze the one supplied by Experian, one of the major credit bureaus. That way, the credit union can verify your identity.
About INOVA Federal Credit Union
INOVA has seven branch locations and more than 34,000 members. It was founded in 1942 as a financial institution for employees of Miles Laboratories, a pharmaceutical company eventually acquired by Bayer.
The credit union earned three out of five stars on Bankrate’s latest Safe & Sound Ratings, which measures the financial health of financial institutions throughout the United States.