6% APY CD No Deposit Limits!!!

[gavinmccallister]

EARN 6.00% APY* ON A CERTIFICATE
Justice Federal Credit Union
There's no need to tie your money up for a long period of time to earn a terrific yield. At Justice FCU, you can earn one of the highest yields in the nation - 6.00% APY* for six months and then the funds will automatically renew into another 6-Month Certificate at the rate in effect at that time.** Please note that the renewal yield at the end of the first 6 months will be a minimum of 4.50% APY. If the prevailing yield at the time of the renewal is higher than 4.50% APY, then you will receive the higher yield. This provides peace of mind knowing that you will continue to receive an attractive yield for the remaining 6 months.

To take advantage of this special offer, the funds must be deposited to Justice FCU from another financial institution. The minimum deposit for regular certificates is just $1,000 and the promotional offer is available on deposits up to $250,000.

If you currently have a Justice FCU certificate that is due to mature before August 31, 2006, you can take advantage of this amazing rate by adding matching funds to your existing certificate and receive a 6.00% APY* on the entire amount.

This offer is available on Regular, IRA, Roth, and Jumbo Certificates. Regular Certificates are insured up to $100,000 by the NCUA and IRA Certificates are separately insured up to $250,000.

Other rates and terms are available. See how we compare to other financial institutions.

Rates are as of August 9, 2006 3 Month Certificate APY*
6 Month Certificate APY*

Justice FCU 4.50% 5.00%
USAA FCU 4.00% 4.60%
Pentagon FCU N/A 4.02%
Chevy Chase Bank 2.61% 4.00%


*Annual Percentage Yield as of 6/9/06. Subject to change.
**This offer cannot be combined with other offers. There is a penalty if you withdraw your money before 12 months.

[LuxLiving]

Re: 6% APY CD No Deposit Limits!!!

This looks like a good place for my question. I have several older CD's that are earning a low rate of 3.5%. It seems to me that ????SOMEWHERE????? I saw a calculator that would let you enter data on your old CD and the rates available on a newer higher interest CD that would tell you whether or not it was profitable/feasible to cash out the old one and invest in the higher rate. Can anyone tell me where such an online calculator might be found? I've googled w/no luck. Maybe I'm not calling it the right thing! Thanks in advance.

~LuxLivingFrugalis

[greedy4chips]

Re: 6% APY CD No Deposit Limits!!!

I didn't have any luck either, but did find a couple tips.

To avoid a penalty you could walk into your bank and speak with a manager about closing out your current CD(s) without penalty or a reduced penalty. If you plan on keeping your money with them, they will be more apt to work a deal with you on the penalty. It can't hurt to ask.

To calculate/estimate the conversion question you need the following info.

What is the penalty on your current CD? Typically 30-90 days of interest not compounded.

What is the new interest rate? Assuming 5.5%, you will gain 2%/yr, which equates to about 200 days of interest on your current CD.

How long do you have before your current CD's mature? Unless you have less than 4 months to maturity I would think the move to a higher rate would certainly be beneficial.

Another way to look at the math is 3.5% * 90 days/365 = .863% penalty, which is easily made up in 6 months of extra interest at the higher hypothetical 5.5% rate.



Your question is very similar to the refinancing a mortgage when you factor in closing costs, new rate, etc. When we refinanced 4 years ago we had a no brainer, but had to do some nifty calculations when rates dropped to 4.95% for 15 yr we re-refinanced again to save .85% and had a break-even of less than 3 yrs between the 2 refinances.

[slimcustomer]

Re: 6% APY CD No Deposit Limits!!!

This deal has been offered for awhile. There are a quite a few credit unions that are offering rates of 6%+ on cds with various maturities. A number of them are easy to join like Digital Credit Union, which is offering 6% apy on a 16 month certificate currently.

[greedy4chips]

Re: 6% APY CD No Deposit Limits!!!

CD calculator to see if you should close older lower yield CDs.

http://bankcdtool.blogspot.com/

[LuxLiving]

Re: 6% APY CD No Deposit Limits!!!

Greedy 4 Chip$-

THANK YOU THANK YOU THANK YOU!!!!

Ohhhh now THIS is exciting!! I'm too bleary eyed to use
this right now, but I'll try to get to it later today!!!

-LuxLivingFrugalis

"Price is what you pay. Value is what you get." -Warren Buffett