LA Financial Credit Union Offers Top 5-Year CD Rate For Large Balances

LA Financial Credit Union (LA Financial) offers tiered APYs on all its Term Share Certificates (TSC) based on four deposit levels – $100k, $50k, $10k, and $1k. While the majority of the TSC has less than competitive rates, the 60-month TSC currently offers a competitive 4.80% APY on deposits of $100k and above.

The 60-month TSC is also offered as an IRA TSC (Traditional, Roth, CESA), earning the same APYs based on the same four deposit tiers.

Early Withdrawal Penalty

As stated on the Term Share Certificate page, the Early Withdrawal Penalty reads as follows:

180 days dividend penalty for terms over 12 months.

According to the Truth-in-Savings disclosure,

If any withdrawal or early withdrawal penalty reduces the Term Share Certificate Account balance below the minimum balance requirement, the account will be canceled and closed.

CSR stated that the above restriction applies to the individual rate tiers of the 60-month TSC. In other words, if funds withdrawn from a 60-month TSC reduce the balance to below the original opening deposit tier, the TSC will be closed.

If the Term Share Certificate Account is closed prior to maturity, any accrued dividends will be paid from the date of the end of the last dividend period to the date of account closure (not including date of closure) prior to the assessment of any early withdrawal penalty. The withdrawal penalty will be applied to the entire principal amount before the remainder of the funds is disbursed to you.

Availability

Headquartered in Pasadena, California, LA Financial Credit Union’s field of membership (FOM) is community based, with individuals who live, work, worship, attend school, or volunteer in Los Angeles County or Lake Havasu City, Arizona, eligible to join.

NOTE: As a division of LA Financial, Havasu Community Credit Union (Havasu CCU) offers membership to those who live, work, worship, attend school, or volunteer in Lake Havasu City, Arizona. Havasu CCU offers the same products and services as LA Financial and operates under the same NCUA Charter.

Employees of any Los Angeles County government department also qualify for membership, regardless of where they live.

Immediate family members of a current LA Financial or Havasu Community Credit Union member or employee are also welcome to apply. “Immediate family” is defined as spouse, child, parent, sibling, grandparent, or grandchild.

Account Opening

Joining LA Financial and/or opening a Term Share Certificate can be done online or at any of the three California branches located in Los Angeles, Norwalk, and Pasadena or the Lake Havasu City (AZ) branch. Existing members can open a TSC online, at any branch, or by calling Member Services (800.894.1200).

Establishing an LA Financial membership requires opening a Primary Savings Account with a $5 minimum deposit.

LA Financial participates in both the CO-OP Shared Branching and ATM networks and provides an ATM and Shared Branch locator.

Funding and Other Particulars

The following information is from the LA Financial Account Agreement disclosure and a conversation with CSR.

• Funding – ACH, wire ($10 fee), check, or internal transfer.
• Ownership – Individual, joint, or trust.
• CO-OP Shared Branch Network – Yes.
• Dividends – Compounded/credited monthly; can be distributed by cashier’s check or transferred to another LA Financial account on a monthly basis.
• Maturing Funds – ACH, wire ($25 fee), check, or internal transfer, based on “previously stated instructions as to disposition.”
• Grace Period – 7 calendar days before automatic renewal.
• Beneficiaries – Maximum of 2 with equal shares; Social Security numbers required.
• Credit Check – Hard pull with Experian.

Credit Union Overview

LA Financial Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 1.86% (excellent) based on March 31, 2023 data. In the past year, LAFCU’s total non-brokered deposits decreased by -$7.07 million, an average annual growth rate of -1.41%. Please refer to our financial overview of LA Financial Federal Credit Union (NCUA Charter #2024 ) for more details.

Established in February 1937 as the Los Angeles County Court Employees Federal Credit Union (LACCEFCU), the founding members were six men and one woman who wanted to “protect the paychecks of many LA County employees from the unscrupulous lenders who inhabited the streets around the Civic Center.” The first financial statement issued in March 1937 listed assets of $1,003, ten loans totaling $585, and 20 members, with operations handled from the bottom desk drawer of Manager/Treasurer Floyd Fisher.

At first, no one had much money to save, so only personal loans were made to the most needy. But the concept worked and caught on quickly. After two years, member savings were $19,705; 196 loans totaled $19,705; and assets reached $22,060.

LACCEFCU merged with the Los Angeles County Hall of Records Federal Credit Union in 1994 and created the Courts and Records Federal Credit Union. In 2003, the LA Financial Credit Union re-brand occurred, with the new name chosen to reflect a diverse and growing membership, and an expansion in services. LA Financial is currently the 87^st largest credit union headquartered in California, with nearly 26,000 members and assets in excess of $556 million.

How the 60-Month Term Share Certificate Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available within the FOM and have minimum deposit requirements of $100k or less, no banks or credit unions have higher rates than currently offered on the LA Financial Credit Union 60-Month Term Share Certificate. The following table compares the 60-Month Term Share Certificate to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.

The above information and rates are accurate as of 8/17/2023.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.