INOVA Federal Credit Union website
INOVA Federal Credit Union

Savers ready to start investing can take advantage of a fantastic 4-year CD offer.

At INOVA Federal Credit Union, you can earn 2.3 percent APY by purchasing a 42-month “certificate of appreciation.”

That’s one of the best long-term certificate of deposit deals available today. Its interest rate is at least 25 basis points higher than the top 48-month CD rates offered by M.Y. Safra Bank and First Internet Bank of Indiana. A basis point is one-hundredth of a percentage point.

Best 48-month CD rates
Institution APY Minimum deposit
M.Y. Safra Bank 2.05% $5,000
First Internet Bank of Indiana 2.02% $1,000
EverBank 2.00% $5,000
Home Savings Bank 2.00% $5,000
Popular Direct 2.00% $10,000

Though the credit union is based in Elkhart, Indiana, just about anyone can become a member by joining one of two not-for-profit organizations.

Who should purchase this CD

The 42-month CD is ideal for new savers. The minimum deposit is $200.

The offer may also appeal to investors interested in building a CD ladder. Purchasing multiple CDs with different term lengths can provide a steady flow of cash. Calculate how much interest you could earn when your 4-year CD matures.

If you happen to have at least $100,000 ready to deposit, you’ll earn a $75 gift card when you purchase the 42-month share certificate.

Prepare for rising interest rates

If you’re concerned about rising interest rates, purchasing a 4-year CD might not be the best idea. The Federal Reserve recently raised its key interest rate for the second time in 2017. Another rate hike may occur before the end of the year.

Pulling funds out of your share certificate before it matures is an option. But it’ll cost you. According to a representative, the early withdrawal penalty is 180 days’ dividends.

If you keep your account open for less than a week, the penalty will not be less than seven days’ dividends.

How to join

You can join INOVA Federal Credit Union by visiting one of its branches or completing an online application. Membership is open to:

  • Credit union employees
  • Household members and immediate family members of existing members
  • Employees of more than 500 companies, including Goodwill Industries and Enterprise Rent-a-Car
  • Residents, employees, students and worshippers in one of the approved geographic areas (contact the credit union for more information)

If you don’t fall into any of those categories, you can join by becoming a member of Tru Direction or the Elkhart River Restoration Association. To find out whether your employer is a member company, visit the credit union’s website.

For all new members, there’s a one-time $10 membership fee. You’ll also be required to deposit $5 into a membership savings account.

How to buy a 42-month share certificate

Once you’re approved for membership, you can purchase the CD online or in person.

To purchase a share certificate, you must:

  • Be at least 18 years old (or have an adult with ownership rights to your account if you’re a minor)
  • Have a Social Security number
  • Have a credit card, debit card or check for funding your new account

Be prepared to submit the names, addresses, Social Security numbers and birth dates of any beneficiaries. If you’re using a check to fund your share certificate, you can send it to the credit union’s headquarters.

About INOVA Federal Credit Union

INOVA Federal Credit Union has more than 5,000 service centers across the country. Outside of Indiana, it has a branch in Berkeley, California. It was established in 1942 to provide financial services and support to employees of a pharmaceutical company.

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.