For those that think the 3% APY CD is long gone, there are still a few credit unions offering rates near 3.00%. El Paso Area Teachers FCU is one, offering a five year cd that is paying 2.98% APY.
That's not bad when you consider the alternatives. Ten year Treasuries yield just 1.91% and ten year municipal bonds pay just 1.86%. There are some high yield corporate bonds that pay more, but risk increases along with the higher payout. In fact all bonds - Treasury, Municipal, and Corporate have some degree of risk.
Because money deposited in El Paso Area Teachers is NCUA insured (FDIC like insurance for credit unions), the risk of losing money below NCUA insurance limits is virtually 0%. That means you get a rate higher than Treasuries, Municipals, and many Corporate Bonds with none of the risk.
CD Details
To receive the 2.98% APY rate from El Paso Teachers, you must deposit a minimum of $50,000 into the CD. If you don't want to deposit that much cash, then you can still get the very competitive rate of 2.88% APY with a $500 minimum balance.
Membership to El Paso Area Teachers FCU is restricted to individuals and family members who live or work in El Paso County. Most credit unions restrict membership to a certain geography or organization.
Accounts can be opened at one of the eight branches the credit union operates in El Paso Country.
About El Paso Teachers FCU
El Paso Area Teachers FCU is a relatively large credit union with $447 million in assets. The credit union is NCUA insured and has a low Texas Ratio of 1.67% versus a national average of 10.34% (lower is better - a lower Texas ratio means the bank has less fewer delinquent loans on its books versus its overall capital).
If you don't live in El Paso Country, don't despair. In our database, I found 16 banks offering a 60 month CD for over 2.75% APY. Find the best CD rate in your local area. Remember, don't settle for average rates on your money.
Previous Weekly Rate Spotlights
- February 21, 2012 - Cardinal Bank Offering 2.01% APY First Choice Checking
- February 13, 2012 - Citizens State Bank Offering 4.00% APY Variable IRA
- February 6, 2012 - Liberty Bank & Trust Offering 1.31% APY Savings Account Rate
- January 30, 2012 - WYMAR Federal Credit Union Offering 2.27% APY 24-Month CD
- January 23- 2012 - Frederica Credit Union Offering 1.65% APY 12-Month CD - Open to All
- January 17, 2012 - Western Heritage Bank Offering 2-Year CD Paying 1.75% APY
- January 9, 2012 - Navy Federal Credit Union Offering 3.00% APY 20-Month IRA CD
- January 5, 2012 - Consumers Credit Union Offers 4.09% APY Rewards Checking Account - Nationally Available
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