Currently the highest 5-year CD rate being offered is by First Indiana Bank and Intervest Bank at 2.00% APY. However, at Fairwinds Credit Union you can get as high as 2.33% on a 5 year CD. Now, why is it “as high as”? First of all, the 5-year CD rate of the credit union is actually at 1.82% which isn’t so bad in itself. However, the union allows its depositors to earn a higher interest rate simply by getting some “relationship rewards” points. By doing so, you can get a rate of 2.07% on a 5 year CD, or even as high as 2.33%.
How does Relationship Rewards Work?
The Fairwinds Credit Union Relationship Rewards is simply their member loyalty program. The points that you earn in the program can allow you to bring your CD rates higher or reduce your auto loan rates. Earning points is simple, the more products and services you use, the more points you can earn. Here are the ways to earn your points:
– 2,500 points for every family member or friend referred that opens a checking account
– 250 points for every Fairwinds loans you set up on auto pay from a Fairwinds checking or savings account
– 100 points for each year of membership
– 1 point for every $1 paid in interest on loans
– 1 point for every $1 in interest or dividends earned on deposit accounts
How Can You Get A Higher CD Rate?
The Rewards Relationship program allows you to add 0.25% to 0.50% on their currently existing CD rates. By having 2,500 rewards points, you are eligible to add 0.25% to your rate, and by earning 5,000 rewards points, you can add a whopping 0.50%.
Since their 5 year CD rate is currently at 1.82%, having 2,500 reward points will give you the 2.07% rate, while having 5,000 points will earn you the highest 5 year CD rate available at 2.33%.
The same can also be done to other rates at different terms.
Fairwinds Credit Union Membership
Most of the time, the only thing that’s stopping us from joining a credit union is because of its membership eligibility. Some of their eligibility requirements include being a resident, working, or schooling at certain counties in Florida, being an employee in several companies in Florida, and being related to any account holder. Further details can be found at their website.