There are a number of lenders that offer a more than decent 7 year CD rate at or over 3%. These are all credit unions which may surprise a lot of investors. However, credit unions are a wonderful place to find your certificates of deposit with great interest rates.
On the other hand, credit unions are usually not available nationally. They are typically restricted to a local or state level which means you may be out of luck for some of these remarkable deals. There are some credit unions available on a national platform, but they may have restrictions on who can become a member. Membership is a requirement to purchase a CD.
Security Service Federal Credit Union pays an amazing 3.50% APY with a minimum deposit of $100,000 for those investors wanting to deposit as much as possible. They have rates available between 3.35% and 3.50%. The least expensive investment for their 7 year CD is $500, but the return is 3.35% APY.
Early withdrawal will cost you between 90 days and one year of your interest earned. Security Service Federal Credit Union requires members to be a resident of Texas or Colorado to purchase CDs.
Randolph Brooks Federal Credit Union is right behind Security Service Federal Credit Union with a rate of 3.40% APY with a minimum deposit of $75,000. They also supply CDs for $20,000 with APY of 3.35%, $5000 with APY of 3.30% and $1000 with APY of 3.25%. However, the early withdrawal penalty is hefty at 420 days of interest. Even more restrictive is the need to live or work in the areas of Austin or San Antonio Texas to buy CDs after becoming a member.
Navy Federal Credit Union compensates certificate of deposit investors 3.00% for APY with investors depositing a minimum of $20,000. If you are interested in depositing $1000 expect an APY of 2.90%, which isn’t shabby. In spite of this, these are the only two 7 year CD options from Navy Federal Credit Union. Early withdrawal is one year of your interest earned.
Navy Federal Credit Union is offering CDs for their members, reservists, retirees and annuitants of all Armed Forces which include the Army, Navy, Air Force and Marines. Army and Air National Guard can also become members of the credit union as well as civilian employees and military contractors of the Department of Defense and their family members.
Pentagon Federal Credit Union has a 7 year CD that delivers 2.75% APY for $1000 minimum deposit. Early withdrawal for Pentagon Federal Credit Union is one year of interest.
The great thing about the Pentagon Federal Credit Union is anyone can become a member and purchase certificates of deposit. Most members qualify for membership with Pentagon Federal Credit Union through their employer or military service. If you don’t qualify through military service or your employer, you can join the National Military Family Association and become a member of the Pentagon Federal Credit Union.
Early withdrawal penalties for CDs that are a year or more of interest will definitely cut into your earning power. Before making an investment into a CD of 7 years or more carefully consider if you can afford to wait for the maturity of a long term CD. If you can afford to wait for maturity of longer term CDs you will definitely come out on top of your investment venture.