Democracy Federal Credit Union Adds Red-Hot 18-Month CD Special
Virginia-based Democracy Federal Credit Union (Democracy FCU) is offering two very competitive Certificate Specials for a limited time. Earning an eye-catching 6.25% APY, the 18-month Certificate Special requires a $1.5k minimum opening deposit of new money. The 9-month Certificate Special earns 4.50% APY and requires a minimum opening deposit of $500 of new money. The 9-month also offers unlimited additional deposits throughout the term.
UPDATE 1/20/2023: I received a call from Democracy FCU this afternoon. I asked CSR about the confusing Democracy FCU outgoing messages described below. She was not aware of the messages and said she would forward my concerns to the appropriate department.
NOTE: This is an incomplete blog post for two reasons: there is no Truth-in-Savings disclosure on Democracy FCU’s website and because I was unable to speak to anyone at Democracy FCU. When I have more details, I will update this blog post, but I wanted to make sure DA readers were aware of this hot deal.Based on reviews on DA, my inability to get through to anyone at Democracy FCU was not a unique experience. I wasn’t surprised when I was put on hold given the 6.25% APY, but I expected to speak to someone eventually. On my first call, I was “Caller 23” before the call was abruptly ended and “Caller 15” on the second dropped call. My third call was the most frustrating: after listening to about 6-7 minutes of Democracy FCU advertising, I heard the following:
This call cannot be completed. Please call later at your convenience. (In a woman’s voice.)
Immediately followed by,
All representatives are currently assisting other members. Please press 1 if you would like to receive a callback or press 2 to leave a message. Otherwise, remain on the line for a representative. (In a man’s voice.)
These two messages repeated ad infinitum, leaving me wondering if I was in “call cannot be completed” limbo or in “remain on the line for a representative” purgatory. I waited an additional 20 minutes before I gave up. I did request a callback, but I’m still waiting.
Availability
Headquartered in Alexandria, Virginia, Democracy Federal Credit Union’s field of membership (FOM) is primarily community-based, with individuals who live, work, worship, attend school, or regularly conduct business in the following locations eligible to join.
Washington, D.C. – all areas of the city.
Maryland – most areas of Prince George’s County and Montgomery County.
Virginia – most areas of the City of Alexandria, Arlington County, and Fairfax County.
Individuals who live in the D.C. metro area or Philadelphia and work for any of the following governmental agencies also qualify for membership: Department of Health & Human Services, Department of Education, Social Security Administration, Federal Energy Regulatory Commission, and Food & Drug Administration.
Faculty, employees, and registered students enrolled in a program leading to a degree or certificate at Gallaudet University are eligible for membership.
Family members of a current Democracy Federal Credit Union member are welcome to apply. There is no definition of “family” provided on Democracy FCU’s website.
Account Opening
Joining Democracy FCU and/or opening a Certificate Special can be done online or at any of the six full-service branches located in Alexandria, Virginia (2); District Heights, Maryland; Philadelphia, Pennsylvania; and Washington, D.C. (2). Appointments are available and can be scheduled online or by calling the branch.
A $5 minimum balance and $10 membership fee is required for a main share Democracy FCU membership.
Democracy FCU participates in both the CO-OP Shared Branch and ATM networks.
Funding and Other Details
UPDATE 1/20/2023: The following information is from the phone call I received this afternoon.
- Early Withdrawal Penalty – a loss of 30 days dividends for all Democracy FCU certificates. Partial withdrawals are allowed.
- Funding – ACH or check.
- CO-OP Shared Branch Participant – Yes.
- Dividends – Compounded/credited monthly and cannot be withdrawn penalty-free.
- Maturing Funds – Cashier’s check or internal transfer to Democracy FCU share savings account.
- Beneficiaries – Unlimited, but POD form only has space for four beneficiaries. More can be added by phone. Percentages can be assigned, Social Security numbers are not required.
- Grace Period – 10 calendar days before automatic renewal as a 12-month CD.
- Credit Check – Soft pull when joining.
Credit Union Overview
Democracy Federal Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 0.63% (excellent) based on September 30, 2022 data. Democracy FCU has an average capitalization level (8.84%), the result of holding $174.57 million in assets with $15.44 million in equity. Please refer to our financial overview of Democracy Federal Credit Union (NCUA Charter # 1407) for more details.
Chartered in 1936 as the Social Security Employees Federal Credit Union, Democracy Federal Credit Union has rebranded four times, with the Democracy name debuting in 2015. Through most of the credit union’s 87-year history, the FOM was exclusive to the employees of several federal governmental agencies. About 16 years ago, the FOM began to expand, including the residents of the Washington D.C. metro area. Democracy Federal Credit Union is currently the 39th largest credit union headquartered in Virginia, with more than 12,400 members and deposits in excess of $156 million.
How the 18-Month Share Certificate Special Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $10k or less, no banks or credit unions have higher rates than currently offered on the Democracy Federal Credit Union 18-month Share Certificate Special. The following table compares the 18-month Share Certificate Special 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 1/20/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
I will gladly spend $3 more a month for my Doritos, while I made $600 more on savings. But I draw the line at spending $8 for eggs :( I simply remove eggs from my diet until they go down. Thats the beauty of inflation on everyday staples, you simply cut them out if you can, and redirect funds somewhere else. When gas was up this past summer, we cut travel as many others did. Gas came down, and we hit the road! It was fun
Inflation does affect me, it affects everyone. Im just saying it hasnt affected my net worth.
Don't know about you but I'd rather have more buying power then more dollars but less buying power.
I can respect that, that you would rather have more buying power than dollars. For me, I would rather have more dollars. A couple reasons..
1. More dollars now will come in handy when there is a recession (the one approaching us now, and the next 3-5 more before im dead), because items will most certainly drop when millions cant buy them anymore. Thats when I swoop in.
2. More dollars (US) built up over a lifetime will have greater buying power when moving abroad ( to a cheaper country). Every country has different economies at different times. Which is the plan for us.
I'll give a quick simple example of the concept I am talking about and then leave the rest for a more appropriate blog.
If you have a dollar in the bank at 4% per year while inflation is 7% per year, at the end of the year you'll have $1.04 in the bank. But that $1.04 won't buy you the same thing $1 would have bought you the year before. You would need $1.07 to buy it. Even though you have more dollars, you've lost 3 cents of buying power for every dollar you had saved. For each subsequent year of inflation that loss of buying power compounds.
Just because you don't see the loss on your assets doesn't mean you didn't incur the loss. That's one of the most insidious parts of inflation and the reason why corrupt governments like to impose inflation tax... They confiscate your money to pay for their corrupt spending and many people don't even know that they've been robbed.
And I was astounded to learn from this website that some people even pray for more.
When you get a statement for your IRA or 401k you are able to see the gains and losses you incur. Too bad we don't have a law that requires the government to send every citizen an inflation statement every year so they can see the damage it is doing to their financial future.
Ok, but youre stating the obvious. All you did was define inflation, which we already know. So yes, you are correct, thats what inflation is. However, my 2 points mentioned above are still valid....
1. That $1 I put in the bank, which grew to 1.04, but now need 1.07 to buy an item, I can wait until the recession hits about buy the item for 75 cents. Win for me
2. That $1 I put in the bank, which grew to 1.04, but now need 1.07 to buy a US item, I can buy overseas for 80 cents. Win for me
It really isnt misguided at all. Its a super simple concept. I can simplify it even more in 1 statement.
You have a million dollars today, but its buying power in 2023 equals 900k. You hold on to it then in 2025 its buying power is 1.2 million.
Completely get your point, but I think what P_D is implying is that you always have to buy something...so whatever you do buy in 2023 makes you suffer the loss he's talking about. Not what you'll buy in 2025.
Currently, it'd be awful difficult not to buy ANYTHING that hasn't been affected by above-average inflation; maybe not as bad as the eggs inflation, but still.. we all have to purchase something in the here and now.
This is very true, most everything has gone up (except Teslas), stuff that we cant do without....food, gas, utilities. But so has your interest income, and my point is that interest income has gone up more than what most people are spending on staples. Also, our household salary has gone up due to inflation (most legit solid corporations have given "inflation" raises, or at least ours did). So for us, and many others, inflation is proving beneficial. Is everyone is my same boat, NO...but many are.
Might even be willing to go as far as to say
I’d take an EWP hit (depending),
Dont do it, its a trap!
Usually the way this works is first you see one outlier and then a few more until a reasonably sized nationwide credit union jumps on the bandwagon. At that point other credit unions start offering the 6% rate.
Now don't get me wrong, I am not saying this will happen. Despite what one poster on this site said who claims I guaranteed we would be seeing 6% rates, it ultimately depends on the inflation numbers and what the Fed is going to do. There really is no way to know for sure but I do think it's significant that one credit union, albeit one that most people can't join, has done something we haven't seen in 16 years. I don't think this can be entirely dismissed as a fluke, at least not quite yet.
PS. 30-day EWP on all their certificates makes them very similar to penalty-free CDs
Good point.
If EWP is 30 days indeed, it is a no-brainer.
If I could figure out how to qualify, I'd be driving to DC.
We'll we see many and often 6% opportunity? I wouldn't bet on that!
National Rate Cap today is up to 6.46%, yet FIs having learned 2008 lesson resiliently demonstrate fiscal discipline and Rate Curve remains inverted.
The future of the Deposit Rates does not directly depend on Inflation and FFR!
It is not a Monetary policy it is macro-economic factors FED is mostly concerned about.
The economic goals as "the Congress has assigned the Fed to conduct the nation’s monetary policy to support the goals of maximum employment, stable prices, and moderate long-term interest rates."
There every CU, smallest or obscurest, is aware that once the Economy hiccups or Labor Market displays the weakness, FED will reverse and rolls back the FFR faster than CU declares itself insolvent.
The key is, you see good Special, seize the opportunity, it is not going to last.
Do not wait for the FED to change the Monetary Policy and the inflation target from 2 to 4%
I was also advised by the CSR I spoke to that I am eligible based on the fact that I work in Fairfax County, but after applying I was denied by the person that called to verify my eligibility. Apparently my employer does not fall within their mapped out areas of Fairfax County. I also worship in Fairfax County, but my church also does not fall within their map of Fairfax County. I am federal government contractor and the agency we support is based out of Washington DC, but that also did not qualify as "regularly conducting business" in Washington DC even though I am occasionally on-site at their office.
Bummer because it's an attractive rate, but also having to take a hard pull on my credit only to be denied.