Apple Federal Credit Union Offering 3.5% APY 5-Year CD

Apple Federal Credit Union is offering a 3.5% APY 60-month CD. If you deposit a minimum of $50,000, the cd APY goes up to 3.6% That's a very competitive rate compared to the best 5 year cd rates on the BestCashCow rate tables. The minimum deposit is $500 and the maximum is $500,000.

The cd is available nationally and anyone can become a member of the credit union by first becoming a member of the Northern Virginia Athletic Directors, Administatrators and Coaches Association (NVADACA). That's a mouthful. Membership costs $20.

Apple Federal Credit Union is also offering a competitive 3% APY 14-month IRA CD with the same minimums and maximums.

Of course, you'll have to decide if it's worth it to lock money up for 5 years at a time when many are predicting that rates will go up. Still, predictions have been wrong before and if you do want to lock up some money long-term, this might not be a bad option. Some prominent economist s like Nobel Laureaute Paul Krugman believe the economy may be headed back into, or stay in a recession in 2010 and if that's the case, we could see a low rate environment for years. In that scenario, a 3.5% APY CD may not be a bad deal.

Apple Federal Credit Union received 4 out of 5 stars (excellent) for its safety and soundness from Bauer Financial.

Credit for the find goes to BankDeals.