Sharonview FCU 64 month CD - 4%

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EvelynTroy
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Sharonview FCU 64 month CD - 4%

Post by EvelynTroy » Fri Mar 02, 2018 2:15 pm

Sharonview FCU (possible easy membership) has a 64-month Certificate Special (4.00% APY). Minimum $500 deposit of new money. For the 64-month certificate, Per Member deposit limit of $250,000 new funds and $100,000 existing funds. Penalty for early withdrawal is 365 days dividends on the amount withdrawn.

https://www.depositaccounts.com/banks/s ... cu/offers/

Evelyn

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Kevin M
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Re: Sharonview FCU 64 month CD - 4%

Post by Kevin M » Fri Mar 02, 2018 2:56 pm

Also saw the DA post on this, but unfortunately the easy membership is only for a very limited geographical area (at least according to the DA post).
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skjoldur
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Re: Sharonview FCU 64 month CD - 4%

Post by skjoldur » Fri Mar 02, 2018 4:37 pm

Kevin M wrote:
Fri Mar 02, 2018 2:56 pm
Also saw the DA post on this, but unfortunately the easy membership is only for a very limited geographical area (at least according to the DA post).
It looks like you can join the Hobby Farmers of America for $20 in order to qualify for membership:

https://hobbyfarmersofamerica.org/store ... embership/

cjg
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Re: Sharonview FCU 64 month CD - 4%

Post by cjg » Fri Mar 02, 2018 4:56 pm

I applied online and created an account. I then tried to call in and it get a blank line after hitting the key that I want a representative it then repeats the original IVR after a few minutes.

For someone that hasn't jumped on one of these before, if I want to transfer funds from an existing Roth IRA, will I just need the account number at Vanguard? Do I need to move the money to cash first or anything like that?

nalor511
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Re: Sharonview FCU 64 month CD - 4%

Post by nalor511 » Fri Mar 02, 2018 5:56 pm

4% rate with $20 join fee (to become eligible) seems like a good deal. 365 day penalty seems high though, making this a bit risky if their customer service isn't great. They do show up on NCUA search http://mapping.ncua.gov/SingleResult.as ... IsCorpCU=0

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Kevin M
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Re: Sharonview FCU 64 month CD - 4%

Post by Kevin M » Fri Mar 02, 2018 9:05 pm

skjoldur wrote:
Fri Mar 02, 2018 4:37 pm
Kevin M wrote:
Fri Mar 02, 2018 2:56 pm
Also saw the DA post on this, but unfortunately the easy membership is only for a very limited geographical area (at least according to the DA post).
It looks like you can join the Hobby Farmers of America for $20 in order to qualify for membership:

https://hobbyfarmersofamerica.org/store ... embership/
Hmm, looks like you may be right. Will be interested to hear back from any forum members not in the geographical area for whom this works.

Kevin
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Kevin M
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Re: Sharonview FCU 64 month CD - 4%

Post by Kevin M » Fri Mar 02, 2018 9:23 pm

cjg wrote:
Fri Mar 02, 2018 4:56 pm
For someone that hasn't jumped on one of these before, if I want to transfer funds from an existing Roth IRA, will I just need the account number at Vanguard? Do I need to move the money to cash first or anything like that?
Typically what you want to do is a direct custodian to custodian IRA transfer. Usually this is initiated by getting the IRA transfer form from the new custodian (in this case, the credit union), filling it out, sending it back to them, then they sign it and send it to your existing custodian, who then mails them a check. I've done many of these, and the time from when you mail the form to when the transfer is complete typically is about three weeks. It can be a bit faster, or it can take longer if there are glitches in the processing by either custodian.

Check with your current custodian to see if they require a medallion signature guarantee on the transfer form. In my experience, this is extremely rare, and hopefully not the case for you, since medallion signature guarantees have gotten harder and harder to get.

The risk is that the rate drops before the transfer is complete. Some institutions will agree to lock the rate when they receive the transfer form, but many won't. You need to call and ask them. The contingency plan is to clarify that you only want to invest in the 4% CD--hopefully there is a place on their transfer form where you can specify this.

The transfer form usually allows you to specify a description of where the money is coming from, but I've usually just had it in a money market (broker) or IRA savings account (credit union or bank). The exceptions have been when I specified to transfer out of a CD when it matured, and this has worked both times I've done it.

An alternative is to do an IRA rollover, but you must complete it within 60 days (which shouldn't be a problem, since the only reason I would do this would be to speed up the process), and you can only do one of these per year. This probably would be faster, since you just need to get your current custodian to mail you a check, which you then mail to the new custodian, but I've always just done direct transfers.

EDIT: And keep in mind that there's a good chance that you're going to want to do an IRA transfer out of the credit union when the CD matures, because there's a good chance they will not be offering competitive CD rates when the CD matures. This is what I'm dealing with for CDs I bought 5-7 years ago at credit unions and banks.

Kevin
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nalor511
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Re: Sharonview FCU 64 month CD - 4%

Post by nalor511 » Sat Mar 03, 2018 3:51 pm

Are you going to do one Kevin?

Chuck
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Re: Sharonview FCU 64 month CD - 4%

Post by Chuck » Sat Mar 03, 2018 4:15 pm

This is tempting, but I have all my money in a lot of silly places now. Ally, Capital One 360, Andrews FCU, Treasury Direct, and others.

Last year I jumped on the Andrews FCU 3% 7-year CD because the rate was astronomical at the time. Now it has 6 years left, and here's a 5.3 year CD that makes 4%. 4% seems really high, but next year, will it? I'm not sure if my heart is in the rate-chasing game anymore...

nalor511
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Re: Sharonview FCU 64 month CD - 4%

Post by nalor511 » Sat Mar 03, 2018 4:46 pm

Chuck wrote:
Sat Mar 03, 2018 4:15 pm
This is tempting, but I have all my money in a lot of silly places now. Ally, Capital One 360, Andrews FCU, Treasury Direct, and others.

Last year I jumped on the Andrews FCU 3% 7-year CD because the rate was astronomical at the time. Now it has 6 years left, and here's a 5.3 year CD that makes 4%. 4% seems really high, but next year, will it? I'm not sure if my heart is in the rate-chasing game anymore...
The Andrews EWP was/is only 6mo interest (180 days), which seems pretty standard to me. Banks/CUs are raising EWPs now since rates are rising, and they don't want a mass exodus of rate-chasing. If they want to keep customers they should just raise their rates instead of raising EWPs. Carrot > Stick

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Re: Sharonview FCU 64 month CD - 4%

Post by Bendee » Sat Mar 03, 2018 6:05 pm

Chuck wrote:
Sat Mar 03, 2018 4:15 pm
This is tempting, but I have all my money in a lot of silly places now. Ally, Capital One 360, Andrews FCU, Treasury Direct, and others.

Last year I jumped on the Andrews FCU 3% 7-year CD because the rate was astronomical at the time. Now it has 6 years left, and here's a 5.3 year CD that makes 4%. 4% seems really high, but next year, will it? I'm not sure if my heart is in the rate-chasing game anymore...
Heck, I have a CapOne 5yr CD for my emergency fund that I got in early November for 2.3% that I thought was great. Then 2 weeks later they raised the rate to 2.45%. Now it is 2.65% and the local credit union who has a branch several blocks away (TruMark) has one for 2.85%. :oops: :oops:

I don't think we will be seeing a decrease in CD rates any time soon, so I'll probably wait until the interest rates go up a little more and then move the money.

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Re: Sharonview FCU 64 month CD - 4%

Post by gips » Sun Mar 04, 2018 4:39 pm

We're out of their geo, will apply monday and report back.

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Flobes
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Re: Sharonview FCU 64 month CD - 4%

Post by Flobes » Mon Mar 05, 2018 12:07 pm

I just spoke with a Sharonview CSR. Here's what I learned:

* Sharonview will lock the rate once their application is complete. They will honor the 4% rate even while there is a delay moving the funds.

* They will accommodate RMDs without any early withdrawal penalty. (I will age into RMDs during the term of the CD.)

* IRA CDs must be opened via conversation with an "IRA Specialist" at Sharonview.

* She has no idea how long the 4% rate will be offered.

The benefits of my pension from a former employer are about to change (yet again), including a big drop in the interest rate, and I've been considering getting my money (@52k) outta there in a lump sum rollover to an IRA. So this rate is very attractive at this very moment. But I have to get the paperwork from the pension group, complete the forms, send it to Sharonview (or wherever), they complete their part, send it to the pension folks, who then send the money; I've heard this can take a month to execute.

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Re: Sharonview FCU 64 month CD - 4%

Post by learning_head » Mon Mar 05, 2018 2:37 pm

According to https://www.sharonview.org/resources/ra ... ings-rates ...

CERTIFICATE/IRA SPECIALS +++

...

* Annual Percentage Yield (APY) is accurate as of 11/13/2017. These rates may change any time without prior notice. After your account is opened, the dividend rate may change

EvelynTroy
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Re: Sharonview FCU 64 month CD - 4%

Post by EvelynTroy » Mon Mar 05, 2018 6:50 pm

These rates may change any time without prior notice. After your account is opened, the dividend rate may change
Don't hold me to it, but if I'm not mistaken your account and your funded CD is two different things.
You would open a Sharonview account, but you might not fund it for a variety of reasons in a timely manner, meaning the dividend rate may change prior to your funding the account to purchase the CD. Once you have purchased the CD in your account I do not believe the rate can change.
Someone can correct me if I am wrong.
Evelyn

amindu
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Re: Sharonview FCU 64 month CD - 4%

Post by amindu » Tue Mar 06, 2018 3:48 pm

Opened and funded with no issues. Easy process and i am not in any of those states where the CU is located.

nalor511
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Re: Sharonview FCU 64 month CD - 4%

Post by nalor511 » Wed Mar 07, 2018 5:27 am

amindu wrote:
Tue Mar 06, 2018 3:48 pm
Opened and funded with no issues. Easy process and i am not in any of those states where the CU is located.
That's great. Anyone else? Any word on how long it will be available?

keinodoggy
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Re: Sharonview FCU 64 month CD - 4%

Post by keinodoggy » Wed Mar 07, 2018 1:32 pm

Looking into this now. I am 5 years from retirement and looking for a safe haven for about 200k of a tIRA lounging in a Money Market account.. So far I've donated $20 to Hobby Farmers of America and am waiting for someone in the IRA department at SharonView to call me.

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Re: Sharonview FCU 64 month CD - 4%

Post by SpaceCowboy » Wed Mar 07, 2018 3:05 pm

I was able to open the basic membership account online with no hassles. Out of state using Hobby Farmers of America. In the process of funding. I called to ask about funding, CSR said they would put a note in my file to guarantee the rate. Planning on funding using a shared branch deposit.

Happy2BeFree
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Re: Sharonview FCU 64 month CD - 4%

Post by Happy2BeFree » Wed Mar 07, 2018 3:42 pm

I also just called, and they said as long as you open an account with the intention of purchasing the CD, they'll hold the rate. (As long as you fund it within a short time, I assume.)

I also asked about an inherited IRA CD, and they said they can do this, but when I asked if they'll figure out my RMD each year, they said no, that the IRS will send me a letter letting me know how much to withdraw each year. I'm not sure how the IRS would know to do this, so I'm not sure about this. But my CSR was very nice and patient, and answered all my questions.
Last edited by Happy2BeFree on Wed Mar 07, 2018 3:52 pm, edited 1 time in total.

cjg
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Re: Sharonview FCU 64 month CD - 4%

Post by cjg » Wed Mar 07, 2018 3:49 pm

nalor511 wrote:
Wed Mar 07, 2018 5:27 am
amindu wrote:
Tue Mar 06, 2018 3:48 pm
Opened and funded with no issues. Easy process and i am not in any of those states where the CU is located.
That's great. Anyone else? Any word on how long it will be available?
I went in branch to open it. I was initially given traditional IRA paperwork even though the account they had opened in their system was Roth. I caught the mistake and they gave me new paperwork to sign. They didn't know how long the rate would last but speculated it might only last a couple weeks. Waiting for the custodian transfer now.

EvelynTroy
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Re: Sharonview FCU 64 month CD - 4%

Post by EvelynTroy » Wed Mar 07, 2018 4:30 pm

Perhaps of interest - thought it worth a mention.
On depositaccounts discussion that the CU may accept membership in the American Consumer Council - I joined to purchase a CD at another CU week or so ago and it was $8.
Couple others weren't sure if you had to separately join the Carolina Consumer Council branch.
If already a member of ACC might be worth a try to join using that membership, or you could ask.
I can't seem to get my act together to take time to purchase one.
Someone else noted: Called to open this, penalty is 1 yr interest for early withdrawal. I didn't verify this.
Thanks to those who posted your experience applying.
Evelyn

protagonist
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Re: Sharonview FCU 64 month CD - 4%

Post by protagonist » Wed Mar 07, 2018 5:22 pm

Kevin M wrote:
Fri Mar 02, 2018 9:05 pm
skjoldur wrote:
Fri Mar 02, 2018 4:37 pm
Kevin M wrote:
Fri Mar 02, 2018 2:56 pm
Also saw the DA post on this, but unfortunately the easy membership is only for a very limited geographical area (at least according to the DA post).
It looks like you can join the Hobby Farmers of America for $20 in order to qualify for membership:

https://hobbyfarmersofamerica.org/store ... embership/
Hmm, looks like you may be right. Will be interested to hear back from any forum members not in the geographical area for whom this works.

Kevin
Also the Charlotte Folk Society. I feel good about donating $20 that might buy mandolin lessons for some kid in need or whatever.

I should also add that I was told the maximum total funds they will accept in 4% certificates is $250K per person. You cannot get around this by buying an IRA and a conventonal CD, or by opening additional accounts with POD benefits.
Last edited by protagonist on Wed Mar 07, 2018 5:40 pm, edited 3 times in total.

protagonist
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Re: Sharonview FCU 64 month CD - 4%

Post by protagonist » Wed Mar 07, 2018 5:32 pm

I completed my membership application.

I wish to prematurely break my IRA certificate at Patelco (2.75% or thereabouts with no EWP for those over 59 1/2 like me) and transfer the funds into a 4% Sharonview IRA certificate (12 mo. EWP).

A question for all....how much of a premium are you willing to pay for a generous EWP?

In other words:
Clearly we would all buy a 3.9% 5 yr CD with no EWP over a 4% 5 yr CD with a 12 mo. EWP.

But what about a 3.5% 5 yr CD , or a 3% 5 yr CD, with no EWP? To what extent would you be willing to discount your final return on a 5 yr CD in order to avoid a 12 mo EWP? And why (if you have a specific reason)?
Last edited by protagonist on Wed Mar 07, 2018 5:37 pm, edited 1 time in total.

nalor511
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Re: Sharonview FCU 64 month CD - 4%

Post by nalor511 » Wed Mar 07, 2018 5:36 pm

EvelynTroy wrote:
Wed Mar 07, 2018 4:30 pm
Perhaps of interest - thought it worth a mention.
On depositaccounts discussion that the CU may accept membership in the American Consumer Council - I joined to purchase a CD at another CU week or so ago and it was $8.
Couple others weren't sure if you had to separately join the Carolina Consumer Council branch.
If already a member of ACC might be worth a try to join using that membership, or you could ask.
When you go through the application process, on the Consumer Council line item in the drop down, it says 'must live in Caronlina, GA, TN, VA' - it doesn't say that for all the lines, but does for Consumer Council

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Re: Sharonview FCU 64 month CD - 4%

Post by Happy2BeFree » Wed Mar 07, 2018 5:51 pm

Has anyone had to do a wire transfer to Sharonview? The CSR I spoke with said they're not doing ACH (free) transfers, only wire transfers.

So it's $20 to join Hobby Farmers, then a $10-$25 fee to wire funds from a bank to Sharonview and a $10 fee to accept the wire to Sharonview? Just making sure I understand all the fees involved. Thanks!

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Re: Sharonview FCU 64 month CD - 4%

Post by Kevin M » Wed Mar 07, 2018 6:15 pm

protagonist wrote:
Wed Mar 07, 2018 5:22 pm
I should also add that I was told the maximum total funds they will accept in 4% certificates is $250K per person. You cannot get around this by buying an IRA and a conventonal CD, or by opening additional accounts with POD benefits.
And if you want to stay within the $250K NCUA insurance limit for an IRA, you don't want to put more than about $205,480 into the CD, since that amount will grow to about $250K in five years at 4% (205,482 =-PV(4%,5,0,250,000).

Edit: math not quite right, since it's a 64 month CD, not a 60-month CD.

Edit 2: So, assuming you open the CD on 3/15/2018, 64 months is 7/15/2018 7/15/2023, which is 1,948 days. The annual rate is 3.922% (4.000% APY)--the math supports that this is daily compounding. So the maximum to stay under $250K at maturity is 202,787 =-PV(3.922%/365,1948,0,250000). This may be off slightly, since my calculations using spreadsheet functions often don't exactly equal the bank's/CU's numbers, but they're quite close.

Kevin
Last edited by Kevin M on Fri Mar 09, 2018 1:29 pm, edited 2 times in total.
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keinodoggy
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Re: Sharonview FCU 64 month CD - 4%

Post by keinodoggy » Wed Mar 07, 2018 6:20 pm

I've created an account and set up a savings account. Must send them a check for $5 to fund it. Sent them a secure e-mail letting them know I will call them tomorrow to initiate a transfer of my tIRA from PenFed since they had already closed at 5 pm.

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Re: Sharonview FCU 64 month CD - 4%

Post by keinodoggy » Wed Mar 07, 2018 6:26 pm


Happy2BeFree
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Re: Sharonview FCU 64 month CD - 4%

Post by Happy2BeFree » Wed Mar 07, 2018 6:42 pm

Thank you...the CSR said that for this special, they're doing only wire transfers, basically because it's simpler for them since they're getting so many applications. I wondered if anyone actually has done a transfer yet, and if so, what kind: ACH/EFT, wire, etc.

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Re: Sharonview FCU 64 month CD - 4%

Post by Kevin M » Wed Mar 07, 2018 6:42 pm

protagonist wrote:
Wed Mar 07, 2018 5:32 pm
I wish to prematurely break my IRA certificate at Patelco (2.75% or thereabouts with no EWP for those over 59 1/2 like me) and transfer the funds into a 4% Sharonview IRA certificate (12 mo. EWP).
I am very interested to hear the details of how this works for you, since this is something I might do too if it works, although by the time you know for sure, the deal probably will be gone.

Has Patelco told you in writing that they will not charge the EWP for an IRA transfer (as opposed to a withdrawal)?

Do you have to do anything other than have Sharonview mail them the IRA transfer form (after you've filled it out and mailed it to Sharonview)? Like inform them (or request) beforehand that you are doing an early withdrawal?

Have you downloaded or otherwise received the IRA transfer form from Sharonview?

Did Sharonview agree to lock the rate even if the transfer takes 3-4 weeks?

My APY at Patelco is only 2.50%, but I have only 17 months until maturity, and that's a very good yield for that maturity. My concern in doing this with IRAs is ending up paying a penalty, and then not getting the great rate upon completion of the transfer. If these two uncertainties can be eliminated, then this looks more attractive for IRAs.

The other issue with my two Patelco IRA CDs is that they total more than the amount that would end up exceeding $250K at 4% for 64 months (and neither one comes close to the maximum).

Kevin
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EvelynTroy
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Re: Sharonview FCU 64 month CD - 4%

Post by EvelynTroy » Wed Mar 07, 2018 6:55 pm

This says they do ACH transfers.

https://www.sharonview.org/docs/default ... ?sfvrsn=10
Maybe the same as my experience, but maybe not. The CD I purchased from another CU last week - their details said the same thing regarding ACH transfer. However, for an IRA CD like mine was they only accepted a wire transfer.
No problem for me because I get 3 free wire transfers a quarter from Schwab where I was transferring the IRA money from.
Encourage readers who might not be fully up to snuff on their Schwab benefits - perhaps your account has this benefit. So easy to use this Schwab benefit - few clicks and my money was wired with email confirmation that it had been wired in about 30 min.
Evelyn

protagonist
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Re: Sharonview FCU 64 month CD - 4%

Post by protagonist » Wed Mar 07, 2018 8:19 pm

Kevin M wrote:
Wed Mar 07, 2018 6:15 pm
protagonist wrote:
Wed Mar 07, 2018 5:22 pm
I should also add that I was told the maximum total funds they will accept in 4% certificates is $250K per person. You cannot get around this by buying an IRA and a conventonal CD, or by opening additional accounts with POD benefits.
And if you want to stay within the $250K NCUA insurance limit for an IRA, you don't want to put more than about $205,480 into the CD, since that amount will grow to about $250K in five years at 4% (205,482 =-PV(4%,5,0,250,000).

Edit: math not quite right, since it's a 64 month CD, not a 60-month CD.

Edit 2: So, assuming you open the CD on 3/15/2018, 64 months is 7/15/2018, which is 1,948 days. The annual rate is 3.922% (4.000% APY)--the math supports that this is daily compounding. So the maximum to stay under $250K at maturity is 202,787 =-PV(3.922%/365,1948,0,250000). This may be off slightly, since my calculations using spreadsheet functions often don't exactly equal the bank's/CU's numbers, but they're quite close.

Kevin
Yes, very good point. But you could, for instance, put $200K in an IRA account and $50K in a conventional account , or $200K in your name and $50K with a POD beneficiary, and you would still be fully insured and, I believe, conform to Sharonview's rules.

protagonist
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Re: Sharonview FCU 64 month CD - 4%

Post by protagonist » Wed Mar 07, 2018 8:31 pm

Kevin M wrote:
Wed Mar 07, 2018 6:42 pm

Has Patelco told you in writing that they will not charge the EWP for an IRA transfer (as opposed to a withdrawal)?
Yes, on the phone.
Do you have to do anything other than have Sharonview mail them the IRA transfer form (after you've filled it out and mailed it to Sharonview)? Like inform them (or request) beforehand that you are doing an early withdrawal?
Patelco rep. said no, and said they typically process the transfer within 48 hrs of receipt of proper paperwork. But I would call them anyway once I got the ball rolling.
Have you downloaded or otherwise received the IRA transfer form from Sharonview?
Not yet. They said I have to first be approved as a member and get my account number, which they said takes 2-3 days.
Did Sharonview agree to lock the rate even if the transfer takes 3-4 weeks?
Not specifically. They did say that once I become a member they can hold the rate for me for a reasonable time. This is , as you understand, a concern of mine....if I withdraw the funds and don't get the rate when they arrive I am back to square one. I need to confirm a hold with them before I actually submit any paperwork.
My APY at Patelco is only 2.50%, but I have only 17 months until maturity, and that's a very good yield for that maturity. My concern in doing this with IRAs is ending up paying a penalty, and then not getting the great rate upon completion of the transfer. If these two uncertainties can be eliminated, then this looks more attractive for IRAs.
I have the same concern, though my maturity date with Patelco is much later.
The other issue with my two Patelco IRA CDs is that they total more than the amount that would end up exceeding $250K at 4% for 64 months (and neither one comes close to the maximum).
The Patelco rep. said they don't permit partial withdrawals EWP-free....if that is true it might present a problem for you. You could also hedge your bets by keeping one at Patelco and transferring the other.....perhaps you can find funds elsewhere that you can also shift to Sharonview. As I said above the rep. told me the limit was $250K TOTAL.

Good luck.

ps....as per my above inquiry ...I am curious. How much lower a rate would you be willing to accept for a 5 year CD with zero EWP as preferable to a 4% 5 yr. CD with 12 mo EWP?

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Kevin M
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Re: Sharonview FCU 64 month CD - 4%

Post by Kevin M » Wed Mar 07, 2018 9:08 pm

protagonist wrote:
Wed Mar 07, 2018 8:31 pm
ps....as per my above inquiry ...I am curious. How much lower a rate would you be willing to accept for a 5 year CD with zero EWP as preferable to a 4% 5 yr. CD with 12 mo EWP?
Good question, and I don't have a set answer. It's just another version of the yield vs. term risk tradeoff. With IRA CDs, there are the extra complexities we've been discussing.

A classic answer is to use a ladder, which of course gets you a lower, blended yield with less term risk, and is essentially what a bond fund is. If applied to your question, the answer might be a barbell of sorts, with some in the 5-year with no term risk and some in the 5-year with term risk limited to the 12 month EWP.

Thinking about the term risk of the 4% CD in rough terms, doing an early withdrawal after two years nets you about 2% per year (1/2 * 4%), and after three years about 2.67% per year (2/3 * 4%). Since the rate on 3-year brokered CDs now is 2.7% (maybe you can get 2.8% on secondary market now and then, perhaps on small quantities), there isn't much point in laddering a 3-year with this 5-year. So I think the yield/term-risk tradeoff for this CD is quite good, basically because the rate is so much higher than the competition.

Another point to consider is that 4% for five years gives you about 60 basis points of extra yield per extra year of maturity compared to a 3-year at 2.8%, which far exceeds the typical guideline of 20 bps per year. And that guideline is for fixed income without an early withdrawal option.

Following this same line of thinking, if you get 3% for a 5-year with no EWP, which is essentially 0 years in terms of term risk, you are getting 20 bps of yield per year for extending from 0 years to 5 years, so just barely meeting the criterion. Anything higher than 3% with no EWP and you're getting less than 20 bps per year for extending to five years at 4%, but the EWP of one year of interest lowers your term risk compared to a brokered CD.

To go beyond some basic guidelines like this, you have to make a rate forecast, and as we know, there are no good rate forecasters. For example, if you forecast that in 2.5 years you will be able to get a 2.5-year CD or another no-penalty 5-year CD at more than 5%, then you're better off sticking with 3% and no EWP. Without making a rate forecast, I see no rational way to make a decision like this, other than sticking with some rules of thumb based on the shape/steepness of the yield curve.

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

amindu
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Re: Sharonview FCU 64 month CD - 4%

Post by amindu » Wed Mar 07, 2018 9:55 pm

nalor511 wrote:
Wed Mar 07, 2018 5:27 am
amindu wrote:
Tue Mar 06, 2018 3:48 pm
Opened and funded with no issues. Easy process and i am not in any of those states where the CU is located.
That's great. Anyone else? Any word on how long it will be available?
The CSR reps have no idea, have asked a couple times but no one knows.

amindu
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Re: Sharonview FCU 64 month CD - 4%

Post by amindu » Wed Mar 07, 2018 9:58 pm

Happy2BeFree wrote:
Wed Mar 07, 2018 6:42 pm
Thank you...the CSR said that for this special, they're doing only wire transfers, basically because it's simpler for them since they're getting so many applications. I wondered if anyone actually has done a transfer yet, and if so, what kind: ACH/EFT, wire, etc.
I did a wire, some others deposited checks at share co-op branches.

Happy2BeFree
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Re: Sharonview FCU 64 month CD - 4%

Post by Happy2BeFree » Wed Mar 07, 2018 10:05 pm

amindu wrote:
Wed Mar 07, 2018 9:58 pm
Happy2BeFree wrote:
Wed Mar 07, 2018 6:42 pm
Thank you...the CSR said that for this special, they're doing only wire transfers, basically because it's simpler for them since they're getting so many applications. I wondered if anyone actually has done a transfer yet, and if so, what kind: ACH/EFT, wire, etc.
I did a wire, some others deposited checks at share co-op branches.
Thanks...so ACH wasn't available?

amindu
Posts: 53
Joined: Thu Aug 04, 2016 11:59 am

Re: Sharonview FCU 64 month CD - 4%

Post by amindu » Wed Mar 07, 2018 10:10 pm

Happy2BeFree wrote:
Wed Mar 07, 2018 10:05 pm
amindu wrote:
Wed Mar 07, 2018 9:58 pm
Happy2BeFree wrote:
Wed Mar 07, 2018 6:42 pm
Thank you...the CSR said that for this special, they're doing only wire transfers, basically because it's simpler for them since they're getting so many applications. I wondered if anyone actually has done a transfer yet, and if so, what kind: ACH/EFT, wire, etc.
I did a wire, some others deposited checks at share co-op branches.
Thanks...so ACH wasn't available?
Well not knowing how long the rate is good for, and all the details earlier in the week figured it was less risky to pay the wire fee then lose out on the CD rate. Now, knowing they will still give you the CD rate for a set period of time i would use ACH. You will probably have to verify using deposits, as that is what i had to do through Chase, so that adds a couple more days of wait time to the equation, and then the 2-3 days ACH takes.

Happy2BeFree
Posts: 169
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Re: Sharonview FCU 64 month CD - 4%

Post by Happy2BeFree » Wed Mar 07, 2018 10:23 pm

amindu wrote:
Wed Mar 07, 2018 10:10 pm
Happy2BeFree wrote:
Wed Mar 07, 2018 10:05 pm
amindu wrote:
Wed Mar 07, 2018 9:58 pm
Happy2BeFree wrote:
Wed Mar 07, 2018 6:42 pm
Thank you...the CSR said that for this special, they're doing only wire transfers, basically because it's simpler for them since they're getting so many applications. I wondered if anyone actually has done a transfer yet, and if so, what kind: ACH/EFT, wire, etc.
I did a wire, some others deposited checks at share co-op branches.
Thanks...so ACH wasn't available?
Well not knowing how long the rate is good for, and all the details earlier in the week figured it was less risky to pay the wire fee then lose out on the CD rate. Now, knowing they will still give you the CD rate for a set period of time i would use ACH. You will probably have to verify using deposits, as that is what i had to do through Chase, so that adds a couple more days of wait time to the equation, and then the 2-3 days ACH takes.
Hmm, maybe that's why she told me they prefer wire transfers in this case. Thanks for the info!

Watts
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Location: Texas

Re: Sharonview FCU 64 month CD - 4%

Post by Watts » Thu Mar 08, 2018 3:33 pm

I'm in the process of setting up my CD. I went through the process of becoming a member and opening a $5 savings account online. Keep in mind that this requires a hard pull on your credit report (TransUnion for me). The CD process can only be done on the phone. I'm not sure if you could become a member with just the CD alone over the telephone.

nalor511
Posts: 231
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Re: Sharonview FCU 64 month CD - 4%

Post by nalor511 » Thu Mar 08, 2018 4:00 pm

Watts wrote:
Thu Mar 08, 2018 3:33 pm
I'm in the process of setting up my CD. I went through the process of becoming a member and opening a $5 savings account online. Keep in mind that this requires a hard pull on your credit report (TransUnion for me). The CD process can only be done on the phone. I'm not sure if you could become a member with just the CD alone over the telephone.
For CUs in general you must give that $5 in a savings account that cannot be removed as long as you are a member, it's generally in their charter as part of being a CU, because technically you own part of the CU with that $5

amindu
Posts: 53
Joined: Thu Aug 04, 2016 11:59 am

Re: Sharonview FCU 64 month CD - 4%

Post by amindu » Thu Mar 08, 2018 6:14 pm

Another word of advice, set up a recurring yearly transfer of $10, as to avoid the $20 monthly service charge for no activity after 12 months.

I set one up at every 6 months just to be safe.

Happy2BeFree
Posts: 169
Joined: Sat Aug 03, 2013 12:26 pm

Re: Sharonview FCU 64 month CD - 4%

Post by Happy2BeFree » Thu Mar 08, 2018 6:27 pm

Watts wrote:
Thu Mar 08, 2018 3:33 pm
I'm in the process of setting up my CD. I went through the process of becoming a member and opening a $5 savings account online. Keep in mind that this requires a hard pull on your credit report (TransUnion for me). The CD process can only be done on the phone. I'm not sure if you could become a member with just the CD alone over the telephone.
I wondered about the hard pull. I froze all CRs (including Chex) last fall, so opening up new CDs is getting a little complicated. The 4% rate would probably be worth the hassle, but in trying to consolidate, simplify, and secure my financial life, I'm starting to wonder if rate chasing and hoop jumping make sense anymore. :confused

cherijoh
Posts: 4932
Joined: Tue Feb 20, 2007 4:49 pm
Location: Charlotte NC

Re: Sharonview FCU 64 month CD - 4%

Post by cherijoh » Thu Mar 08, 2018 6:37 pm

Kevin M wrote:
Wed Mar 07, 2018 6:15 pm
protagonist wrote:
Wed Mar 07, 2018 5:22 pm
I should also add that I was told the maximum total funds they will accept in 4% certificates is $250K per person. You cannot get around this by buying an IRA and a conventonal CD, or by opening additional accounts with POD benefits.
And if you want to stay within the $250K NCUA insurance limit for an IRA, you don't want to put more than about $205,480 into the CD, since that amount will grow to about $250K in five years at 4% (205,482 =-PV(4%,5,0,250,000).

Edit: math not quite right, since it's a 64 month CD, not a 60-month CD.

Edit 2: So, assuming you open the CD on 3/15/2018, 64 months is 7/15/2018, which is 1,948 days. The annual rate is 3.922% (4.000% APY)--the math supports that this is daily compounding. So the maximum to stay under $250K at maturity is 202,787 =-PV(3.922%/365,1948,0,250000). This may be off slightly, since my calculations using spreadsheet functions often don't exactly equal the bank's/CU's numbers, but they're quite close.

Kevin
Wrong year in your post.

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whodidntante
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Re: Sharonview FCU 64 month CD - 4%

Post by whodidntante » Thu Mar 08, 2018 6:40 pm

Oh brother. This is going to complicate the mortgage payoff threads.

cherijoh
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Location: Charlotte NC

Re: Sharonview FCU 64 month CD - 4%

Post by cherijoh » Thu Mar 08, 2018 6:50 pm

EvelynTroy wrote:
Fri Mar 02, 2018 2:15 pm
Sharonview FCU (possible easy membership) has a 64-month Certificate Special (4.00% APY). Minimum $500 deposit of new money. For the 64-month certificate, Per Member deposit limit of $250,000 new funds and $100,000 existing funds. Penalty for early withdrawal is 365 days dividends on the amount withdrawn.

https://www.depositaccounts.com/banks/s ... cu/offers/

Evelyn
I am a long-term very satisfied Sharonview member here in Charlotte NC. They never announce how long their special CDs are available. This is the first time that I recall that long of a term CD with a premium interest rate. (They have mostly offered 7- and 13-month CDs at premium rates along with the standard regular rates). So Customer Service may be a bit overwhelmed by the out-of-footprint interest.

goodenoughinvestor
Posts: 290
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Re: Sharonview FCU 64 month CD - 4%

Post by goodenoughinvestor » Thu Mar 08, 2018 9:13 pm

Happy2BeFree wrote:
Thu Mar 08, 2018 6:27 pm
Watts wrote:
Thu Mar 08, 2018 3:33 pm
I'm in the process of setting up my CD. I went through the process of becoming a member and opening a $5 savings account online. Keep in mind that this requires a hard pull on your credit report (TransUnion for me). The CD process can only be done on the phone. I'm not sure if you could become a member with just the CD alone over the telephone.
I wondered about the hard pull. I froze all CRs (including Chex) last fall, so opening up new CDs is getting a little complicated. The 4% rate would probably be worth the hassle, but in trying to consolidate, simplify, and secure my financial life, I'm starting to wonder if rate chasing and hoop jumping make sense anymore. :confused
I can confirm that the hard pull is from Transunion. You don't need to unfreeze any others.

SpaceCowboy
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Re: Sharonview FCU 64 month CD - 4%

Post by SpaceCowboy » Thu Mar 08, 2018 11:52 pm

Funded with a wire and then called to open CD. One of my wires was rejected by them because it did not have my address in the originator info. So, you might want to make sure your address is included in the wire instructions. This appears to be an usual requirement.

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Soul.in.Progress
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Re: Sharonview FCU 64 month CD - 4%

Post by Soul.in.Progress » Fri Mar 09, 2018 8:38 am

This is great!!!! I’ve been waiting for something like this. Thank you, OP!
Start by doing what is necessary; | then do what is possible; | and suddenly you are doing the impossible. | -- Francis of Assisi

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