Teachers Federal Credit Union offers 14 standard certificates of deposit terms, ranging from three to 60 months. In addition to offering a wide range of terms, TFCU pays highly competitive CD rates, with yields for its standard certificates ranging from 1.65% to 5.25%—close to some of the best rates on the market. The minimum deposit to open a standard certificate at TFCU is $1,000, which is relatively low.
Below is an overview of the Teachers Federal Credit Union Standard Certificates of Deposit rates. Account details and annual percentage yields (APYs) are accurate as of January 10, 2023.
| CD Term | APY | Minimum Deposit |
|---|---|---|
|
3 Months
|
4.25%
|
$1,000
|
|
6 Months
|
5.00%
|
$1,000
|
|
9 Months
|
4.25%
|
$1,000
|
|
12 Months
|
4.25%
|
$1,000
|
|
13 Months
|
4.25%
|
$1,000
|
|
15 Months
|
2.10%
|
$1,000
|
|
16 Months
|
2.65%
|
$1,000
|
|
18 Months
|
2.65%
|
$1,000
|
|
22 Months
|
1.65%
|
$1,000
|
|
24 Months
|
3.50%
|
$1,000
|
|
30 Months
|
2.75%
|
$1,000
|
|
36 Months
|
3.25%
|
$1,000
|
|
48 Months
|
3.25%
|
$1,000
|
|
60 Months
|
3.25%
|
$1,000
|
Overview of Teachers Federal Credit Union CDs
Teachers Federal Credit Union members can open standard or jumbo CD accounts.
Their standard CDs have a $1,000 minimum opening deposit and come in terms of three months to five years, while their jumbo certificates require deposits of at least $100,000 and have maturities of one to 16 months.
The APYs for the Teachers Federal Credit Union Jumbo Certificates of Deposit are similar to those offered by its standard CD accounts, but its jumbo CD accounts come in different term offerings ranging from one month to 16 months. Regardless of which account type you choose to open, the interest on your balance is usually compounded daily, and it is credited to your account either monthly or quarterly, with the exception of the three-month certificate dividends that are credited at maturity.
While TFCU doesn’t charge maintenance fees on its CDs, early withdrawal penalties are hefty.
If your CD has a maturity of one year or less, the early withdrawal penalty is the lesser of all interest earned since the date of issuance or six months’ worth of interest. If your account has a maturity date of more than one year, the penalty is the lesser of all interest earned since the date of issuance or nine months’ worth of interest.
Opening a CD account online with TFCU is rather straightforward. The credit union states the process takes around five minutes, and you’ll need your driver’s license information and Social Security or taxpayer identification number.
| Overview of Teachers Federal Credit Union Standard CDs | |
|---|---|
|
Minimum Deposit
|
$1,000
|
|
Term Lengths
|
3,6,9,12,13,15,16,18,22,24,30,36,48 and 60 months
|
|
Compounding Schedule
|
Daily
|
|
Early Withdrawal Penalty
|
Varies depending on the terms of the certificate
|
|
Grace Period for Early Withdrawals After Maturity
|
Seven calendar days
|
How Much Can You Earn With Teachers Federal Credit Union’s CD Rates?
While Teachers Federal Credit Union offers competitive rates, the exact interest you’ll earn depends on the certificate term and account balance. To figure out how much you can earn with a Teachers Federal Credit Union certificate, plug the numbers into our CD calculator:
How Teachers Federal Credit Union CDs Compare
Teachers Federal Credit Union’s rates on its short-term CDs (one year or less) are well above national average rates according to the FDIC and only slightly lower than the best CD rates on the market. The rates on TFCU’s long-term CDs (15 months or greater) are quite a bit lower than the most competitive CD rates, though they’re still generally above average.
Before deciding where to park your hard-earned cash, be sure to compare CD rates from different banks and credit unions. This way, you can ensure you’re earning the best rate possible based on your deposit amount and investment time horizon.
About Teachers Federal Credit Union
Founded by a group of teachers on Long Island in 1952, Teachers Federal Credit Union is a member-owned not-for-profit financial institution with an initial mission of supporting educators on their financial journeys. Today, TFCU serves a broader membership base, including individuals and businesses across various sectors. It boasts over $9.7 billion in assets, 460,000 members and 32 branches across the United States.
Find The Best CD Rates Of 2024
Frequently Asked Questions (FAQs)
Are CDs a safe investment?
Yes. Standard CDs are generally considered a safe investment choice. They offer a fixed interest rate over a specified period, mitigating the risk of market volatility. Plus, up to $250,000 of your deposits are backed by either the Federal Deposit Insurance Corporation (for banks) or National Credit Union Administration (for credit unions), so in the unlikely event of a bank failure, your cash is secure.
What types of CDs are there?
The most common types of CDs are standard CDs; jumbo CDs, which typically require an initial investment of at least $100,000; no-penalty CDs, which allow for one penalty-free early withdrawal; and brokered CDs, which are CDs offered by a brokerage. There are also bump-up CDs, which allow you to increase your CD rate at least once throughout the term and add-on CDs, which allow you to add money to your CD at least once throughout the term. Finally, IRA CDs are certificates of deposit kept within an individual retirement account.
What are some pros and cons of CDs?
Certificates of deposit are low-risk investments that offer fixed, and often higher, interest rates compared to regular savings accounts. However, CDs require you to tie up your funds for the duration of the CD term, which may limit your earning potential, especially when inflation is high. And if you decide to make an early withdrawal, you can incur hefty penalties.
