This offer has expired and is no longer available. Click here to view the best high yield savings accounts & CDs.
Offer at a glance
- Interest Rate: 4% APY
- Minimum Balance: $500
- Maximum Balance: $250,000 in new funds, $100,000 in existing funds
- Availability: Must live, work, worship, attend school, or volunteer in select areas of NC & SC. But anybody in NC SC, GA, TN or VA can join by first becoming a member of Carolina Consumer Council (use promo code SFCU to make it free). Everybody else should be able to become a member by first joining Hobby Farmers of America for $20.
- Hard/soft pull: Hard pull
- ChexSystems: Unknown
- Credit card funding: Unknown
- Monthly fees: None
- Insured: NCUA
The Offer
- Sharonview Federal Credit Union is offering a 4% 64 month CD on balances up to $250,000 in new money and $100,000 in existing money
The Fine Print
- All bank account bonuses are treated as income/interest and as such you have to pay taxes on them
Avoiding Fees
There is an early withdrawal penalty of 365 days dividends on the amount withdrawn.
Eligibility
Must live, work, worship, attend school, or volunteer in select areas of NC & SC. But anybody in NC SC, GA, TN or VA can join by first becoming a member of Carolina Consumer Council (use promo code SFCU to make it free). Everybody else should be able to become a member by first joining Hobby Farmers of America for $20.
Our Verdict
The hard pull is a bit annoying, so is the deposit length and the early withdrawal penalty. Even over a 64 month term I don’t see standard savings rates getting this high, but you can never predict what will happen. There are some rewards accounts that earn at above 4% but dealing with the requirements can be annoying and none of them have a maximum balance that even remotely resembles $250,000. Can definitely see this being useful for a lot of readers, as always share your experiences in the comments below.
Hat tip to Deposit Accounts & reader Rebekah B
Looks like it’s over. No mention on their website this morning.
Yup, updating now.
A commenter on depositaccounts.com says “Was just informed by a branch CSR in NJ deal ends today [Friday March 9] at 5pm [Eastern].”
Does anyone know what are the options on how the interest is paid?
Monthly checks or compounded in the CD. Must choose when you create the CD and can’t change your choice later.
It’s not clear above whether you’re saying this is limited to those areas (over and above the eligibility to join credit union, bypass-able with $20 donation).
I don’t see an area limitation on the direct link. Any clarification on this?
They are denying non-local applicants using free-or-$5 ACC membership, except a few who snuck in the first day. To get approved as a non-local applicant, you can use the $20 Folk Society or $20 Hobby Farmers membership. There are multiple reports of non-local success with those $20 memberships, on other sites.
I’ve neved opened a CD. Can you add money over time? Like, can I open with a small amount and add over time like a savings account or is it a fixed amount? I understand the early withdrawal penalty.
Except when explicitly marketed as an ‘add-on’ CD, no, most CDs are established with a one-time deposit only.
The 365 day early withdrawal penalty is quite harsh. Pretty much guarantees that you’ll need to leave the funds in for the full 64-month term.
The funding options listed are the Sharonview account, external bank account or mailing in a check. No credit card funding option.
I really wouldn’t recommend this to anyone.
If you don’t need to touch the money for over 5 years, you’re far better off putting it into a mix of low cost index ETFs and corporate/muni bonds. Risk adjusted return is above 5% and you get higher liquidity. 5 year time horizon negates any short-term volatility risk.
How about somebody who absolutely needs to spend the principal in 5-6yrs?
By that I mean if you have money that you want to keep safe, grow, and be able to use at any time within the next 5 years?
Short term risk free rate is around 2-2.5% currently (2-year treasury just hit 2.25%) – several credit unions have savings/checking accounts at around that rate. That should be your basement rate for any money you currently have sitting around. Core Inflation is around 1.8% so any money you have making less than that is actually losing value over time. I like to divide my money into tranches based on whether they are emergency (no risk), realistic goals (low risk), and aspirational goals (higher risk).
I shoot for returns as follows:
Emergency: 2-2.5%
Realistic goals: 5-6%
Aspirational goals: 10-15%
Hi Orion, Appreciate if you can list an example or two of a low cost index ETFs, corporate/muni bonds that I can get started on? Thank you!
A 5 year time horizon does not negate short-term volatility risk. There have been numerous examples in US history where the stock market has lost inflation-adjusted value over 5 years. And if you want a really bad-case example, look at the inflation-adjusted S&P 500 from the late 60s to the early 80s…a total horror show. http://www.multpl.com/inflation-adjusted-s-p-500
4% risk free return on a 64 month CD is incredible, even with the reduced liquidity of a CD. The 5 year treasury rate (equivalent level of risk for equivalent time period) is 2.6%.
For most people, some exposure to the stock market is necessary for the long-term returns they need. But 4% CD ballast for the fixed income part of your portfolio is fantastic right now.
I recommend checking out bogleheads.org for anybody that wants serious investment advice…with all due respect, Orion knows just enough to be dangerous.
While you can apply for an account online, you cannot apply for the CD online. You will have to call them to open the CD, and they are not available over the weekend.
I applied for membership, but received a notification that they couldn’t verify my information and that I should call during business hours, so Monday at 8am.
I also bought a HobbyFarmer membership, but the order is “on hold” for about 24 hours now. I paid with PayPal via my balance so they received the payment immediately.
I’m not sure about this one. 4% is a very high rate and I can’t imagine they are looking to take on a huge amount of deposits at that rate at this time. The application process has not been confidence inspiring, and so far I’ve spent $20 and eaten a hard pull. YMMV.
Ughh, a hard pull for a CD? Not sure why that’s even necessary when you’re lending them money and not the other way around.