Northwest FCU 3-year 3.04% Add-On CD

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Kevin M
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Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Thu Oct 01, 2015 8:46 pm

FYI, I just published a blog post about grabbing this CD today: Northwest FCU 3-year 3.04% Add-On CD.

As mentioned in the blog post, I just happened to stumble onto this great CD deal in the process of answering a BH post asking about saving for a 3-5 year time-frame.

The process isn't complete, so I can't vouch for how it will all work out, but s So far it's looking really good, and the comments on the DepositAccounts.com blog post about this CD look fairly positive. We also grabbed one of these CDs for my fiancee; I think the second application took us about 10 minutes to complete.

EDIT: I've now completed or helped to complete four applications, and all have gone smoothly and been approved. However, some forum members and blog readers have had problems. Below I'm posting an addendum to share tips, tricks and "secret handshakes" that have been proven to make things happen more smoothly and quickly, or that may help you get through confusing parts of the process.

The most time consuming part of doing the first application was scanning through the hundreds of organizations to see if I might qualify for credit union membership without springing for the $10 to join the Financial Awareness Network. I suggested to my fiancee that she just wait until tomorrow, and I'd probably have my membership number so she could join for free as a member of an existing member's household, but she said she'd just rather spend the $10 and not take a chance of missing out on the deal ;-)

ADDENDUM

Joining Financial Awareness Network (FAN). Some people have been confused by this. There is no paperwork to submit, and nothing to do in advance. If you use the online application, you simply check the radio button below and to the left of "I qualify through my Employer or Organization", then scroll through the choices until you get to Financial Awareness Network Inc., then click Next. On the next page, in the dropdown selection box to the right of "Please enter your FAN:", select "Joining FAN", then click Next, then click Next again on the next screen, and continue on through the screens. When you get to the funding screen, you'll see that $10 will be charged for FAN.

Online Application Tool. As part of the online application process, you will create a login to the online application tool. This will enable you to track the status of your application, as referenced in tips below. Note that this is not the same as the login you will create to access your NWFCU account once it is approved and set up; you will then create another login for that. Confusing, but that's the way it is with some credit unions (exact same process with USAlliance Financial). I use LastPass, and so created LastPass sites named something like "NWFCU application", and then once account was approved, created a different LastPass site called something like NWFCU. Once your account is set up, you may never use the application tool login again, but I'm keeping mine just in case.

Overriding the $15K initial deposit limit. At the funding screen, you will see that the maximum deposit is $15,011, which I assume is $15K for the CD, $10 for FAN and $1 for the savings account. (You can leave the savings account deposit amount blank, and just enter $15,000 for the CD. What seems to happen is that NWFCU funds the savings account for you.) To make a higher initial deposit, up to the $100K max, send an email to newaccounts@nwfcu.org, and tell them how much you'd like to deposit. Include your application number in the email; you'll find your application number at the lower left of the web page used to track the status of your application. NWFCU will then modify your application to reflect the higher initial deposit amount.

Expediting processing of your application. After completing the online application, either upload an image of your drivers license using the online application tool, or email it to newaccounts@nwfcu.org (include your application number); I used *.jpg format. Either way, send them an email asking them to complete processing of your application and to send you the DocuSign document to sign electronically. You can include your request to increase the initial deposit in the same email. This seems to fairly reliably result in your application being processed the same business day or next day.

Application statuses. If you successfully answer the four identification verification questions during the online application process, your application status should show INSTANT APPROVED via the online application tool. However, this is not really final approval, which requires manual processing by NWFCU, after which the status will change to APPROVED. If you fail to answer the questions correctly, or perhaps if you have your credit reporting frozen, your status probably will be PENDING or something like that, and you will have to contact NWFCU to resolve it. This hasn't happened to me in doing four applications, so no further advice on this.

$100K Maximum and interest earned. There is still confusion about this, and I don't have a definitive answer yet, but sSeveral forum members have reported that Customer Service Reps (CSRs) have informed them that the CD does earn interest if $100K is deposited, or if reinvested interest causes the CD to hit $100K. However, some reports have indicated that the interest goes to your NWFCU savings account if this limit is reached. Still waiting for a definitive answer, but oOne person I helped made the maximum deposit of $100K, and no flags have been raised yet. I received an email response from a NWFCU CSR stating that the limit only applies to deposits, and that the 3.04% APY is earned on all deposits up to $100K.

Making additional deposits. As mentioned in the blog post, the $15K limit in the online application worked out perfectly for me, but I do plan on making additional deposits to max out the CD over the next couple of months, as other CDs mature. I have not received a definitive answer about how to do this (I have sent an email asking), but several forum members report that it is done by pushing an ACH transfer from your external bank account into your NWFCU savings account, and then requesting that they transfer it from there into your CD. One forum member has reported that the ACH transfer can be done directly into the CD, but no one has verified this yet. I received an email from a NWFCU CSR saying that you can only do transfers from external accounts to the savings account--not directly to the CD account.

Account numbers. When you receive the DocuSign document, after doing the electronic signature and initials, scroll down to the bottom, and you should see your account/member number, which is an 8-digit number. You also should be able to find this by viewing your application in the online application tool. Hopefully you'll also see your savings account number, which is the same 8-digit number preceded by 10000. Somewhere I also saw the CD account number, which is the 8-digit number preceded by 90000. So if your member/account number is 12345678, your savings account number is 1000012345678, and your CD account number is 9000012345678. The NWFCU routing number is 256075025. You will use either the savings account number or the CD account number plus the routing number to set up the link for ACH transfers from your external bank account, which you would use to make additional deposits to the CD (see previous paragraph).

Transfers. You can set up a transfer link to an external account at NWFCU. Forum member tfb has informed us that this is for inbound outbound transfers only (and he quoted the disclosure on this later in the thread); i.e., ACH transfers initiated at NWFCU can only transfer money out of NWFCU to the external account. However, an NWFCU CSR told me by email that you could do inbound transfers initiated at NWFCU, but only $2,500 daily and $10,000 monthly. I just initiated the link, but haven't completed verification of the trial deposits, so no personal experience with this yet. I plan to set up the link for ACH transfers from my external bank account (Ally Bank checking) to enable making additional deposits., but am waiting to hear from them (in writing) if I can set up the link directly to the CD account, or if I must use You transfer into the savings account, and then have them transfer it into the CD. According to email I received from a CSR, external transfers can only be done to the NWFCU savings account, not directly to the CD.

IRA Accounts. NWFCU does offer both Roth and Traditional IRA accounts, and the application forms are easily found by searching on IRA in the search box on the NWFCU home page, but here is the link to save you 30 seconds: Applications & Forms - IRA | Northwest Federal Credit Union (NWFCU). However, forum members have reported that NWFCU CSRs have said by phone that they will not guarantee the CD special rate until the IRA transfer is complete. Therefore, I would not even consider doing an IRA transfer to buy this CD unless you get a rate guarantee in writing.

Additional tips shared with me by PM from a forum member:
The online application accommodates ACH transfers in. This doesn't work for everyone, ie your money is coming from a non-ACH institution or you need funds from more than one source to get to the $10k minimum. Strategy is to "push" funds into the Savings account. Then call customer service to purchase the CD from your $ in savings. The Savings to CD-buy cannot be accomplished online.

Secret handshakes I gleaned:
* Once you've got an application # AND you've sent your ID, you can call to get your account number (well they put you on hold and come back with it) req'd to "push" into savings.
* CSR can change CD at-maturity directive from "auto-reinvest" to "deposit to savings" instruction.

FWIW I sent my drivers license as a PDF in an email.
Kevin
Last edited by Kevin M on Thu Oct 08, 2015 12:01 pm, edited 4 times in total.
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stlutz
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by stlutz » Thu Oct 01, 2015 9:06 pm

I suggested to my fiancee that she just wait until tomorrow, and I'd probably have my membership number so she could join for free as a member of an existing member's household, but she said she'd just rather spend the $10 and not take a chance of missing out on the deal
I hope she'll be depositing more than $100. :twisted:

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Kevin M
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Thu Oct 01, 2015 9:28 pm

stlutz wrote:
I suggested to my fiancee that she just wait until tomorrow, and I'd probably have my membership number so she could join for free as a member of an existing member's household, but she said she'd just rather spend the $10 and not take a chance of missing out on the deal
I hope she'll be depositing more than $100. :twisted:
With a minimum deposit of $10,000, that ain't gonna happen. ;-) So worst case, someone earns $930 instead of $940 over three years, knocking the APY down from 3.04% to about 3.01%.

Kevin
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FlamingoTime
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by FlamingoTime » Thu Oct 01, 2015 11:28 pm

Kevin,

Can I ask how you did your FInancial Awarenesss Network app? I can only seem to find a PDF that I have to fill out and send in $10. But I'm assuming I need an immediate membership number in order to join the credit union and get this CD deal . Am I missing something? Thanks!

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by 2comma » Fri Oct 02, 2015 12:47 am

Kevin,

Thanks for posting this! Since the max initial deposit from an external account is $15000 do you have any idea how to get the rest of the money into the CD account as quickly as possible? In their disclosure on Additional Deposits they just say there is no minimum so do you think the next day I can just transfer in an additional $75000?
If I am stupid I will pay.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Fri Oct 02, 2015 4:06 am

FlamingoTime wrote:Kevin,

Can I ask how you did your FInancial Awarenesss Network app? I can only seem to find a PDF that I have to fill out and send in $10. But I'm assuming I need an immediate membership number in order to join the credit union and get this CD deal . Am I missing something? Thanks!
There was no FAN application. In the online application, I just selected "I qualify through my Employer or Organization", then selected FInancial Awarenesss Network from the drop-down list of organizations. Click next, then at "Please enter your FAN:", select "Joining FAN" from the drop-down list. Then just continue through the application.

When you get to the funding screen, you'll see the $10 entered for FAN, and then you enter the amount to deposit to the CD.

Kevin
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Fri Oct 02, 2015 4:23 am

2comma wrote:Kevin,

Thanks for posting this! Since the max initial deposit from an external account is $15000 do you have any idea how to get the rest of the money into the CD account as quickly as possible? In their disclosure on Additional Deposits they just say there is no minimum so do you think the next day I can just transfer in an additional $75000?
I don't know, but I assume worst case you make multiple additional deposits of $15,000. I think there's probably an easier way to do it, either having a representative do it by phone, or setting up ACH transfer from your checking account to the NWFCU savings account, then pushing the additional deposit in; or maybe this limit doesn't exist for existing accounts. Usually daily transfer limits can be exceeded by initiating the transfer from an external linked account that doesn't have low limits, like an Ally Bank account, but of course you have to have the account already set up to do this.

If I had really wanted to try to get the max in today, I would have called, but $15K is the amount I happened to have on hand right now, so it worked out well for me (having recently put another $100K into the USAlliance 2-year 2.28% CD special). Also, it was after business hours when I was filling out the online application.

Note that some comments on the DepositAccounts.com blog post about the CD indicate that interest isn't earned once the balance hits $100K, so I would limit maximum deposit to $91K unless you verify that this is not the case. I plan to ask about this once my account is set up. This is one thing that isn't clear in the disclosure document:
Dividend Compounding and Crediting: Dividends are posted and compounded monthly. They are paid from the date of deposit to the date of maturity on the actual value of the Certificate. If you close your Certificate before dividends are credited you will receive accrued dividends, unless they are part of the penalty.

Minimum Balance Requirements: The minimum balance requirement applicable to this “3 Year Add-on Promo” certificate is $10,000.

Maximum Balance Requirements: The maximum balance requirement applicable to this “3 Year Add-on Promo” certificate is $100,000.
Kevin
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AviN
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by AviN » Fri Oct 02, 2015 8:13 am

Thanks for sharing Kevin! I just opened a $10k CD.

Avi

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by FlamingoTime » Fri Oct 02, 2015 8:40 am

Kevin,

Went through the process and membership is pending. Never saw a funding option? Was your membership immediately approved?

Thanks,

Debbie

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by tbradnc » Fri Oct 02, 2015 8:45 am

I've now got CDs at 6 different institutions and 3 high yield savings accounts.

Dang...

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by kate1234 » Fri Oct 02, 2015 9:32 am

From NWFCU website:

Early Withdrawal Penalty: We may impose a penalty if you withdraw any of the principal in your account before the maturity date. For Certificates having a term of six (6) months or less, the penalty will be equal to all dividends on the amount withdrawn since the date of issuance or renewal. For Certificates having a term greater than six (6) months and less than two (2) years, the penalty will be equal to the lesser of 180 days of dividends on the amount withdrawn or all dividends on the amount withdrawn since the date of issuance or renewal. For Certificates having a term equal to or greater than two (2) years the penalty will be equal to the lesser of 366 days of dividends on the amount withdrawn or all dividends on the amount withdrawn since the date of issuance or renewal. All Certificates are subject to a minimum early withdrawal penalty equal to seven (7) days dividends applied to amounts withdrawn within the first six (6) calendar days after issuance, deposit (including deposits of dividends) or last partial withdrawal. If a withdrawal of the principal amount reduces the balance below the minimum amount required for the Certificate, the account will be cancelled and the applicable penalty imposed.

How the Penalty Works: The penalty is calculated as a forfeiture of part of the dividends that have been or would be earned on the account. It applies whether or not the dividends have been earned. In other words, if the account has not yet earned enough dividends or if the dividend has already been paid, the penalty will be deducted from the principal.

___________________

Is this unusual to have the penalty possibly be larger than the amount of dividends that have been earned?

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Bustoff » Fri Oct 02, 2015 10:00 am

Thanks for posting this Kevin.

I just spoke with Brandy at Northwest FCU about the IRA option and whether they would lock the rate during an IRA transfer.
After checking with management Brandy said they will not lock the rate and could not confirm when the promotion ends.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by AviN » Fri Oct 02, 2015 10:36 am

FlamingoTime wrote:Kevin,

Went through the process and membership is pending. Never saw a funding option? Was your membership immediately approved?

Thanks,

Debbie
My application is still pending, but I've already been asked for my bank information to fund the account. You may want to call them to ensure your application has been correctly submitted.

Avi

panhead
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3.04% 3 year CD at NWFCU

Post by panhead » Fri Oct 02, 2015 11:09 am

[Thread merged, see below. --admin LadyGeek]

Just saw this at early-retirement.org:

https://www.depositaccounts.com/banks/n ... t-fcu.html

Pretty good stuff!

(edited to fix link)

2nd edit to add:

Looks like anyone can join the CU by joining FAN at the same time as you open an account with NWFCU. It costs $10 to join.

Edited to fix the name of the credit union (NWFCU = Northwest federal credit union, NOT NFCU = Navy Federal Credit Union)

The link, however, was correct
Last edited by panhead on Fri Oct 02, 2015 11:58 am, edited 1 time in total.

tomd37
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Re: 3.04% 3 year CD at NFCU

Post by tomd37 » Fri Oct 02, 2015 11:52 am

Panhead,
Are you sure you have the correct credit union in the subject line? NFCU to me is Navy Federal Credit Union and they do not appear to have any 3.04% certificates.
Tom D.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Constant Chaos » Fri Oct 02, 2015 11:53 am

FlamingoTime wrote:Kevin,

Went through the process and membership is pending. Never saw a funding option? Was your membership immediately approved?

Thanks,

Debbie
Same here. I got online at 8:30 am and began the online application process. Got as far as the email confirmation section...and they didnt end up sending the email verifcation to my inbox for almost an hour. Confirmed my email and it allowed me to pick a verifcation image, answer security questions and choose a password. Then it took me to a page saying my application was "pending." No where to do funding options or anything else. now I cant even sign in; says id or password is invalid. :annoyed been on hold waiting to talk to someone for 30 minutes at this point. :confused

209south
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Re: 3.04% 3 year CD at NWFCU

Post by 209south » Fri Oct 02, 2015 11:59 am

It appears to be Northwest Federal Credit Union - not clear if any can apply or it is is strictly limited, but the terms are very attractive.

panhead
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by panhead » Fri Oct 02, 2015 12:02 pm

I also posted about this same offer (MODS: you might want to merge the threads)

I called them and asked about a couple of questions, one was what happens if I fund it with $100,000. They said that the dividends would still be added to the CD and compound. So it appears that you can only fund it with a maximum of $100k, but the dividends will compound above this limit.

They also said that for online apps filled out today, they should be approved by EOB.

AviN
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Re: 3.04% 3 year CD at NWFCU

Post by AviN » Fri Oct 02, 2015 12:02 pm

Kevin already posted it here. Maybe a moderator can merge.

viewtopic.php?f=10&t=174898

panhead
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by panhead » Fri Oct 02, 2015 12:04 pm

Note that if you simply go to the webpage and click the 'login' link, you cannot log in as you don't have an account yet.
Go back to the confirmation email and click the link in it to get to the correct login screen which is for new accounts

Constant Chaos wrote:
FlamingoTime wrote:Kevin,

Went through the process and membership is pending. Never saw a funding option? Was your membership immediately approved?

Thanks,

Debbie
Same here. I got online at 8:30 am and began the online application process. Got as far as the email confirmation section...and they didnt end up sending the email verifcation to my inbox for almost an hour. Confirmed my email and it allowed me to pick a verifcation image, answer security questions and choose a password. Then it took me to a page saying my application was "pending." No where to do funding options or anything else. now I cant even sign in; says id or password is invalid. :annoyed been on hold waiting to talk to someone for 30 minutes at this point. :confused

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Gardener246 » Fri Oct 02, 2015 12:08 pm

Thanks for alerting the forum to this great deal, Kevin, and for the FAN membership application instructions.

Just applied, now awaiting approval; I saw mention of a possible Experian pull so I unfroze that for a few days, just in case.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by LadyGeek » Fri Oct 02, 2015 12:33 pm

FYI - I merged panhead's thread into here, which is in the Investing - Theory, News & General forum.
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Constant Chaos » Fri Oct 02, 2015 12:52 pm

panhead wrote:Note that if you simply go to the webpage and click the 'login' link, you cannot log in as you don't have an account yet.
Go back to the confirmation email and click the link in it to get to the correct login screen which is for new accounts

You are correct, I did need to login through the new accounts.
CS told me My application was incomplete. I finished it by clicking "edit application" and filling out the Beneficiary and Funding sections.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by panhead » Fri Oct 02, 2015 1:38 pm

For those who did not see the funding options during the application process, I just posted this at early-retirement.org, as I ran into the same thing:
*********
OK, about those who didn't see the funding screen, if you go to the screen where it says your application is 'pending' you should see a link next to this to 'edit application' if this link is there and active, click on it. At the bottom of each page there is a 'next' button. Keep filling out any info that you haven't completed and click next. You will eventually get to the funding screen. when you are done it will be obvious, and when I went back to the screen that said 'pending' it now says 'referred'.
Somehow, we all exited before we were done, probably using the 'finish and save later' thinking it was a just a 'finish' button.
***************

PS: Thanks Ladygeek for merging the threads!

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by AviN » Fri Oct 02, 2015 2:18 pm

Humboldt965 wrote:Thanks for alerting the forum to this great deal, Kevin, and for the FAN membership application instructions.

Just applied, now awaiting approval; I saw mention of a possible Experian pull so I unfroze that for a few days, just in case.
FWIW, the credit report pull for me seems to have been immediate. During the application process, I was asked questions about my credit report.

Avi

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Fri Oct 02, 2015 2:39 pm

FlamingoTime wrote:Kevin,

Went through the process and membership is pending. Never saw a funding option? Was your membership immediately approved?

Thanks,

Debbie
Hi Debbie. It appears that a few people have had this problem. I'm wondering if one possible issue might be the way in which the email confirmation step is handled. Toward the beginning of the confirmation email, sent in the middle of the online application process, they say to click a link to confirm, but I didn't do that, since I still had the application open with the text box to enter the confirmation number. The confirmation number is toward the bottom of the confirmation email. So I just copied the confirmation number and pasted into the confirmation number box on the online application confirmation screen. I was then able to proceed through the entire application, including the funding options.

If you created the application login, which is not the same as the member login which will be set up later, you should be able login to see the status of your application, and if necessary continue completing it. The status for mine says "INSTANT APPROVED", however no member number is provided. I assume this means that my application is approved, but I still need to electronically sign the documents that will be emailed.

According to the Account Application Acceptance Notification email I received, I will be receiving an email within two business days that will include documents to be signed electronically using DocuSign. As I mentioned in my blog post (linked in the OP), this is exactly the process used by USAlliance Financial, which also had a good CD deal recently. The document package emailed by USAlliance Financial included membership and account numbers, with instructions on setting up online access, so I assume it will work the same way at NWFCU.

Hope this helps,

Kevin
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Fri Oct 02, 2015 2:44 pm

tbradnc wrote:I've now got CDs at 6 different institutions and 3 high yield savings accounts.

Dang...
I'm in a similar situation with CDs, but once opened, they're mostly just an entry in my portfolio spreadsheet and my CD spreadsheet until maturity. However, I do download statements quarterly, so this is an extra few minutes per institution four times each year. I haven't gotten to the point where I mind the extra complexity, but I can see backing off on this as I get older and lazier.

Kevin
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by tbradnc » Fri Oct 02, 2015 2:52 pm

Just curious... my status is "Referred". If i view my application my external bank information is correct (at the very bottom of the app) but the dollar amount is $0.00. I very clearly xferred $15,001 - $15k for the CD and $1 for the savings account.

Is $0.00 what everyone else with an application pending has? Just wondering....

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Fri Oct 02, 2015 2:59 pm

kate1234 wrote:From NWFCU website:

<snip>
For Certificates having a term equal to or greater than two (2) years the penalty will be equal to the lesser of 366 days of dividends on the amount withdrawn or all dividends on the amount withdrawn since the date of issuance or renewal.
<snip>
How the Penalty Works: The penalty is calculated as a forfeiture of part of the dividends that have been or would be earned on the account. It applies whether or not the dividends have been earned. In other words, if the account has not yet earned enough dividends or if the dividend has already been paid, the penalty will be deducted from the principal.
The part I highlighted indicates that principal is not invaded for early withdrawals within the first year, which is unusual (PenFed is another one that does it this way). The "lesser of" statement is key, since dividends earned will be less than 366 days of dividends for the first year. The second paragraph quoted is confusing in this light, but perhaps it is relevant to this part of the terms:
All Certificates are subject to a minimum early withdrawal penalty equal to seven (7) days dividends applied to amounts withdrawn within the first six (6) calendar days after issuance, deposit (including deposits of dividends) or last partial withdrawal.
So I think putting this all together, if you did an early withdrawal after one day, you'd be charged seven days of dividends, so would lose some principal.

Other interpretations are welcome.
kate1234 wrote:Is this unusual to have the penalty possibly be larger than the amount of dividends that have been earned?
So no, it's not at all unusual for this to be the case as you state it--in my experience it is typical, with PenFed being an exception. So I'd say that it's more unusual that the penalty will consist only of dividends for the first year, and the confusing language in the following paragraph also is unusual I think.

Kevin
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Constant Chaos
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Constant Chaos » Fri Oct 02, 2015 3:07 pm

tbradnc wrote:Just curious... my status is "Referred". If i view my application my external bank information is correct (at the very bottom of the app) but the dollar amount is $0.00. I very clearly xferred $15,001 - $15k for the CD and $1 for the savings account.

Is $0.00 what everyone else with an application pending has? Just wondering....
Mine is the same right now...Referred for the status and the application says $0

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Fri Oct 02, 2015 3:07 pm

Bustoff wrote: I just spoke with Brandy at Northwest FCU about the IRA option and whether they would lock the rate during an IRA transfer.
After checking with management Brandy said they will not lock the rate and could not confirm when the promotion ends.
Too bad, but thanks for updating us on this, Bustoff.

Based on your input, I would not try this for an IRA. There might have been a workaround for those eligible to make IRA contributions (do a small IRA contribution to open the CD, deductible or not, then add on to the CD with an IRA transfer), but with the $10,000 minimum, this is not doable.

A crazy idea might be to contribute $10K to the IRA, planning on withdrawing the excess contribution, but I don't know if NWFCU would even accept an IRA contribution exceeding the 5,500/6,500 annual contribution limit. I would think not.

You were lucky getting through by phone, as the wait times seem to be long; not surprising due to the interest we're seeing here and on DepositAccounts.com. I've also received several emails and comments based on my blog post about this--much more than usual.

Thanks,

Kevin
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Fri Oct 02, 2015 3:21 pm

panhead wrote: I called them and asked about a couple of questions, one was what happens if I fund it with $100,000. They said that the dividends would still be added to the CD and compound. So it appears that you can only fund it with a maximum of $100k, but the dividends will compound above this limit.
This is good news, and conflicts with some comments I saw on the DepositAccounts.com blog post, but in re-reading those, I think this was just someone's inaccurate interpretation of the terms. Thanks for sharing this! I think I'd like to see it in writing though, so probably will ask by message or email. CSRs are known to give conflicting information.
panhead wrote:They also said that for online apps filled out today, they should be approved by EOB.
I completed mine yesterday, and although the status shows "INSTANT APPROVED" online, I still have not received the DocuSign documents by email. I imagine they're swamped with applications today.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by abc...xyz » Fri Oct 02, 2015 3:36 pm

Kevin,

Thanks for the heads up on the FCU CD! I 'think' that I'm the proud owner of a 3.04% CD as I received an email telling me that they received my application and a New Accounts Representative contact me shortly by email... I hope that means they're just completing the final paperwork on their end.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Chesterfield » Fri Oct 02, 2015 3:47 pm

Kevin M wrote:
Bustoff wrote: I just spoke with Brandy at Northwest FCU about the IRA option and whether they would lock the rate during an IRA transfer.
After checking with management Brandy said they will not lock the rate and could not confirm when the promotion ends.
Too bad, but thanks for updating us on this, Bustoff.

Based on your input, I would not try this for an IRA. There might have been a workaround for those eligible to make IRA contributions (do a small IRA contribution to open the CD, deductible or not, then add on to the CD with an IRA transfer), but with the $10,000 minimum, this is not doable.

A crazy idea might be to contribute $10K to the IRA, planning on withdrawing the excess contribution, but I don't know if NWFCU would even accept an IRA contribution exceeding the 5,500/6,500 annual contribution limit. I would think not.

You were lucky getting through by phone, as the wait times seem to be long; not surprising due to the interest we're seeing here and on DepositAccounts.com. I've also received several emails and comments based on my blog post about this--much more than usual.

Thanks,

Kevin
You can also try to do an "indirect RO". 1)Call up the firm you currently have r/IRA with, tell them you want to do indirect RO. They will liquidate that account, and mail you the check. Take note of the exact number. 2)Tell Northwest FCU you want to do a indirect RO and that you can do the contribution NOW from your saving/checking account. Go ahead and transfer the exact dollar amount from the check you have yet to receive. 3)A fter 7-10 days but, you will receive that check and simply deposit it into your own saving account. You're basically borrowing the $ ahead from teh indirect RO to contribute to r/IRA.

The only "inconvenient" thing is you can only do ONE indirect RO/year and make sure the $ being reinvested WITHIN 60 days. You also have to file an couple lines on the tax form, but not a big deal.

This is the simplest way I can think of to expedite/fund IRA in this CD to ensure the rate. It's essentially $ coming from your own saving/checking account borrowed ahead from an indirect RO check, which hasn't come to you yet...
Last edited by Chesterfield on Fri Oct 02, 2015 4:03 pm, edited 2 times in total.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by tbradnc » Fri Oct 02, 2015 3:51 pm

Between this deal and the PenFed deal December two years ago a lot of 3% cd's are going to mature 4Q 2018....

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Fri Oct 02, 2015 3:51 pm

tbradnc wrote:Just curious... my status is "Referred". If i view my application my external bank information is correct (at the very bottom of the app) but the dollar amount is $0.00. I very clearly xferred $15,001 - $15k for the CD and $1 for the savings account.

Is $0.00 what everyone else with an application pending has? Just wondering....
As mentioned earlier, my status is INSTANT APPROVED; this also is the case for my fiancee's application status. Viewing my application, I see $15,000 as the Amount in the Bank Account Transfer Information section.

I wonder if the different statuses reflect the status of one's credit report. Did you successfully get through the screen asking the four identification verification questions? This worked fine for us, but I've had problems with these questions in other applications, which usually requires some follow up to resolve.

Kevin
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Fri Oct 02, 2015 3:55 pm

abc...xyz wrote:Kevin,

Thanks for the heads up on the FCU CD! I 'think' that I'm the proud owner of a 3.04% CD as I received an email telling me that they received my application and a New Accounts Representative contact me shortly by email... I hope that means they're just completing the final paperwork on their end.
This is my situation too, and I believe your assessment is correct, and that you will receive an email with a document that you sign electronically using DocuSign. If you log on to the application, what is your Application Status? If it's INSTANT APPROVED, then you are in exactly the same boat as I am.

Kevin
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by tbradnc » Fri Oct 02, 2015 4:00 pm

Kevin M wrote:
tbradnc wrote:Just curious... my status is "Referred". If i view my application my external bank information is correct (at the very bottom of the app) but the dollar amount is $0.00. I very clearly xferred $15,001 - $15k for the CD and $1 for the savings account.

Is $0.00 what everyone else with an application pending has? Just wondering....
As mentioned earlier, my status is INSTANT APPROVED; this also is the case for my fiancee's application status. Viewing my application, I see $15,000 as the Amount in the Bank Account Transfer Information section.

I wonder if the different statuses reflect the status of one's credit report. Did you successfully get through the screen asking the four identification verification questions? This worked fine for us, but I've had problems with these questions in other applications, which usually requires some follow up to resolve.

Kevin
My credit is frozen, that may be it. I did get the canned message saying my application was received and I representative would be with me shortly to complete the application.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Bustoff » Fri Oct 02, 2015 4:09 pm

I also opened a CD there but have a question.

Does anyone know how much time we have to get the additional money into the CD before the 3.04% rate expires?

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by AviN » Fri Oct 02, 2015 4:37 pm

Bustoff wrote:I also opened a CD there but have a question.

Does anyone know how much time we have to get the additional money into the CD before the 3.04% rate expires?
I assumed 3 years, but might be wrong.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Happy2BeFree » Fri Oct 02, 2015 5:11 pm

Many thanks to Kevin for always letting us know about these great CD deals!

I filled out my online app last night. I did get to the funding page, but had to navigate through some glitches on the way. This morning I called, and after a 20-minute wait, got to a very nice CSR, who said they've been swamped with calls and online apps, so that explains the hiccups.

She suggested I email the NWFCU new accounts dept. a copy of my driver's license. She also said that if I intended to fully fund the CD with $100k, I could request that in my email. (I asked her whether $100k would accrue interest; she said yes.) I told her that the online app stated $15k was the max for the first transfer, but she didn't seem aware of this. I also requested that they not do a hard inquiry of my credit report, and she assured me they do only a soft pull.

I just received a few more emails from NW, one of them affirming all the CSR's info, which was a relief. Another email directed me to e-sign the docs to complete my app, but I still can't get to the log-in page by clicking on the link they sent. (Note: I just went directly to the website and registered since I now have my account number. Logged in and saw my accounts set up. Next, I'll check my bank to make sure everything gets transferred correctly.)

All in all, NW did not seem ready to handle the influx of Bogleheads and ER folks who swarmed their ranks! This is indeed a great deal. No idea when they'll shut their doors on it, though.

Good luck! And thanks again, Kevin! :sharebeer

(Edited for clarity.)
Last edited by Happy2BeFree on Fri Oct 02, 2015 9:12 pm, edited 1 time in total.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Fri Oct 02, 2015 8:06 pm

Bustoff wrote: Does anyone know how much time we have to get the additional money into the CD before the 3.04% rate expires?
The disclosure says you can add deposits at any time; I read this to be at any time until maturity:
You may make additional deposits to an Add-On Certificate at any time.
And the rate is fixed for the "initial term", which is three years, so the additional deposits will earn the same rate:
For all accounts, the Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the initial term of the account
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Fri Oct 02, 2015 8:16 pm

Happy2BeFree wrote:Another email directed me to e-sign the docs to complete my app, but I still can't get to the log-in page by clicking on the link they sent. (Note: I just went directly to the website and registered since I now have my account number. Logged in and saw my accounts set up.<snip>
I submitted my application earlier than you, but still haven't received the email with the DocuSign documents. I guess the squeaky wheel gets the grease ;-). I figured they'd be swamped with calls and emails, so just planned on waiting until EOB on Monday before emailing them about it, since they indicate that the email should be received within two business days.

I've also had the problem of getting a web page with "Session Timed Out" message or "Session has Expired" message when trying to access it from a link, and this also happens when trying login with LastPass directly. I also found the workaround is just to go to the website first, then logon (and LastPass works once you're at the proper web page).

Thanks for sharing the useful info Happy2BeFree!

Kevin
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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Happy2BeFree » Fri Oct 02, 2015 9:24 pm

Kevin M wrote:
Happy2BeFree wrote:Another email directed me to e-sign the docs to complete my app, but I still can't get to the log-in page by clicking on the link they sent. (Note: I just went directly to the website and registered since I now have my account number. Logged in and saw my accounts set up.<snip>
I submitted my application earlier than you, but still haven't received the email with the DocuSign documents. I guess the squeaky wheel gets the grease ;-). I figured they'd be swamped with calls and emails, so just planned on waiting until EOB on Monday before emailing them about it, since they indicate that the email should be received within two business days.

I've also had the problem of getting a web page with "Session Timed Out" message or "Session has Expired" message when trying to access it from a link, and this also happens when trying login with LastPass directly. I also found the workaround is just to go to the website first, then logon (and LastPass works once you're at the proper web page).

Thanks for sharing the useful info Happy2BeFree!

Kevin
I think I was nervous because I'd had enough glitches and do-overs last night that I wanted to make sure it went through. I had no idea I'd be expediting the process by calling—it was worth the 20-minute wait! :wink:

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by letsgobobby » Fri Oct 02, 2015 10:31 pm

This is really amazing. Is there any reason we wouldn't sell any other bond fund and buy the maximum amount of these? A married couple could buy $182k, right, and still optimize 3 year yields?

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Average Investor » Fri Oct 02, 2015 11:45 pm

Thanks for posting!
Tomorrow never knows.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by john94549 » Sat Oct 03, 2015 12:10 am

Happy2BeFree wrote:
No idea when they'll shut their doors on it, though.
As I noted in another thread, these CD "specials" can be quite ephemeral. I am not at all surprised the CSR would not offer a rate lock. Once the "word gets out" you're offering 3%, money just floods in. Then, of course, you need to shut the door. It's easier if you have a restricted field of membership. They don't.

Anecdote: Several years back, a local bank in Leawood, KS offered a great promo CD rate. I asked my Mom's personal banker, Jane, what was going on. She had no clue, but did say her desk was inundated with CD transfers. I think the promo lasted less than a week.

Seriously, if you're paying "us" 3%, don't you have to lend it out at 3%+? The old Amazon joke: we lose money on every sale, but make it up on volume.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Kevin M » Sat Oct 03, 2015 3:29 am

letsgobobby wrote:This is really amazing. Is there any reason we wouldn't sell any other bond fund and buy the maximum amount of these? A married couple could buy $182k, right, and still optimize 3 year yields?
Actually, I think it's $200K; the info to the contrary was just someone's misunderstanding (I've updated my blog post to reflect this).

I don't know if your question is serous or facetious, but I am planning on selling the last of a national muni fund I own to buy more of this; but I'm still holding my state-specific muni funds for now. As always, this is a trade-off of risk and expected return. A comparison to a 3-year Treasury makes this look like a no-brainer, so if your bond fund has a higher yield, it must be riskier--but you may be OK with taking the extra risk for the higher yield.

SEC yield of Vanguard Intermediate-term bond fund is about 1.8% (1.9% for Admiral shares). So even at a 33% marginal tax rate this CD is a good deal in a taxable account, especially considering that it is much less risky than the bond fund. However, I'm not immune to the appeal of the higher (federally tax-free) distribution yield of almost 3%, but the common wisdom is that the SEC yield is more representative of expected return. Distribution yields of some funds have remained stubbornly higher than SEC yields for quite some time, but I don't think this can persist forever.

The fund I'm going to sell has even higher SEC and distribution yields: the High-Yield Tax-Exempt fund with SEC yield of almost 3% and distribution yield of almost 4%. It's just hard to pass up a 200+ basis point premium to a 3-year Treasury. Maybe I'll add a bit more to stocks to compensate, since I will have dialed down the risk on my fixed income a bit.

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by MKP » Sat Oct 03, 2015 5:13 am

Can someone please tell me if I can fund from multiple accounts, or does all of the money have to come from one account?

Thanks!

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Re: Northwest FCU 3-year 3.04% Add-On CD

Post by Swampy » Sat Oct 03, 2015 5:55 am

As regards to the 3.04% CD rate, which is good up to a $100,000 deposit:

Am I to interpret this as meaning 3.04% for the first $100,000 and any accrued interest is earning a lower percentage since it is
above the $100,000 cutoff limit?

I've encountered this with a few institutions where it is better to work 'backward' from a $100,000 ending account value
(assuming one doesn't take quarterly, monthly or annual dividends) and invest somewhere under $92,000 to get the full APY.

If dividend checks can be issued by NWFCU on a regular basis, then there would be no reason no to put the entire $100,000 in,
but then the APY would be fractionally lower (because there is no accumulated interest on interest).

Does anyone have an idea on this policy, including getting interest/dividends paid out regularly?
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