Weekly Rate Update - Frederica Credit Union Offering 1.65% APY 12-Month CD - Open to All

Frederica Credit Union is offering its members a 12-month CD that pays 1.65% APY. That is one of the very best rates in the country on a 1 year CD. The average 1-year CD nationally pays 0.55% and the average 5-year CD pays 1.51% APY. Best of all, anyone can become a member of Fredrica. The minimum opening deposit is $10,000.

Most credit unions require an individual to work for a certain organization or live in a certain area before they can become a member. Frederica's field of membership includes those who have worked at Sea Island Company - The Cloister Hotel. But it also includes any person that is a member or would like to become a member of The Getting Ahead Association. This association is committed to helping individuals gain access to "the information and services you need to improve your quality of life and reduce the cost of living. Membership is open to any individual who is genuinely committed to improving their own financial well-being." The cost of membership is $5.

Once a person joins The Getting Ahead Association, they are eligible to join the following credit unions:

1st Choice Credit Union, CORE Credit Union, Credit Union of Atlanta, Credit Union of Georgia, Delta Community Credit Union, Excel Federal Credit Union, Frederica Credit Union, GEMC Federal Credit Union, Georgia United Credit Union, Georgia's Own Credit Union, Gwinnett Federal Credit Union, LGE Community Credit Union, Northwest Georgia Credit Union, Pinnacle Credit Union, and MembersFirst Credit Union.

Frederica is open to members from all across the United States and serves its members in disparate geographies via its membership in a credit union network called the Shared Branch Network. This network provides access to Frederica accounts via thousands of branches across the U.S. The bank also participates in the CU24 ATM Network, which has thousands of ATMs.

The credit union itself operates two branches in Brunswick, GA. The credit union was founded in 1966 and has $40 million in assets. One thing to be aware of is that the credit union unfortunately has an extremely high Texas Ratio of 104.15% versus the national credit union average of 10.34%. This is a strong warning sign that there may be financial problems. Learn more about the Texas Ratio. The credit union also has a net worth of 3.23%, well below the national average of 10.15%. Net worth measures difference between total assets and total liabilities. The higher the number, the better.

Frederica is NCUA insured, the credit union equivalent of FDIC insurance. That means that your money is insured up to $250,000 per person.

If you're willing to take a risk on a credit union with a less than stellar Texas ratio, then Frederica may be for you. The reality is that with NCUA insurance, the only risk is that the CU may be closed and you'll have your CD funds returned. In a worse case scenario, as long as you stay below NCUA insurance limits, you could lose the high CD rate but not your principal.

• Learn about the differences between a bank and a credit union.
• Find other great CD rates in your local area.

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Users can now register to receive the best bank rates via email every Monday. You can choose to either receive the best rates for banks across the country, or you can receive the best rates for your state. You can cancel delivery at any time and also login to change which product rates you receive for which state. This email service is free. You can register for the service here.

I hope to eventually also have the weekly rate updates go out via this email service.

Previous Weekly Rate Deals

• January 17, 2011 - Western Heritage Bank Offering 2-Year CD Paying 1.75% APY
• January 9, 2012 - Navy Federal Credit Union Offering 3.00% APY 20-Month IRA CD
• January 5, 2012 - Consumers Credit Union Offers 4.09% APY Rewards Checking Account - Nationally Available
• December 29, 2011 - Aflac Federal Credit Union Offering 2.41% APY Savings Account
• December 19, 2011 - CIT Bank and Its 1.15% APY 12-Month Achiever CD
• December 12, 2011 - Citizens State Bank of TX Offering 2.85% IRA CD
• December 5, 2011 - Digital Federal Credit Union Offering 2.86% APY CD - Nationally Available

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