A new certificate of deposit (CD) from Credit Human Federal Credit Union is offering an attractive 6% annual percentage yield (APY) with flexible 12- to 17-month terms. However, there are strict membership requirements that may limit who can take advantage of this high rate.
Opening Details of the Credit Human 6% APY CD
The 6% APY CD from Credit Human provides one of the top rates available nationally right now. It offers a minimum deposit of just $500 to get started and has no maximum deposit limit.
You can choose from term lengths between 12 and 17 months. At maturity, the CD will automatically renew for the same term length unless you opt out.
While many top yielding CDs have restrictions on the maximum amount you can deposit to earn the advertised APY, Credit Human’s 6% CD has no cap. However, it does have strict membership requirements.
Membership Limitations for the Credit Human 6% APY CD
Like most credit unions, you must become a member to open accounts and take advantage of products at Credit Human. Membership is limited to people who:
- Live, work, worship or attend school in the credit union’s designated areas in San Antonio or New Orleans
- Have a family member who is already a Credit Human member
- Attend certain approved trade schools, colleges or universities
For those outside of Credit Human’s membership areas, there is another option. You may be able to join the credit union by becoming a member of the American Consumer Council (ACC) or Louisiana Consumer Council (LACC) first.
The credit union states that they will share your contact information with the appropriate council and cover any membership fees. This allows you to bypass geographic restrictions by agreeing to receive consumer education from the council.
The membership fee is normally $15 for ACC individual membership or $79 for a business. LACC membership details are unclear.
Additional Account Requirements
Besides joining the credit union, there are a couple other requirements to open the 6% APY CD:
- You must open a primary share savings account with a $5 minimum deposit
- The savings account has a $1,000 balance cap and earns 0.70% APY
- No monthly fees are charged on the savings account
So you’ll need to open the primary savings account to become a member and access the high-rate CD.
Early Withdrawal Penalties
Like most CDs, Credit Human charges early withdrawal penalties if you take money out before the maturity date. Specific details on the penalty amounts are not provided.
The credit union only states that “substantial penalties” will be imposed on tax-deferred accounts and that fees could reduce earnings.
It’s best to avoid early withdrawals from CDs if possible. You can incur fees equivalent to several months’ worth of interest.
Key Factors When Opening a Top-Yield CD
When considering a high-rate CD like Credit Human’s 6% APY offer, here are some key factors to look for beyond just the interest rate:
- FDIC or NCUA Insurance – The bank or credit union should be federally insured to protect deposits. Credit Human is insured by the NCUA for up to $250,000 per depositor.
- Minimum and Maximum Deposit Allowed – Some CDs limit the amount you can invest or require large deposits. Watch for restrictions.
- Early Withdrawal Penalties – Understand the specific penalty fees for withdrawing funds before maturity.
- Membership or Account Requirements – Joining a credit union often requires opening a separate account or membership affiliations.
- Compounding Frequency – More frequent compounding will help your interest accumulate faster.
- Auto-Renewal Policy – Many CDs renew automatically at maturity if you don’t opt out.
The Credit Human 6% APY CD provides a top-tier interest rate on a flexible 12- to 17-month term. Just be aware of geographic and membership restrictions.
And as always, read the fine print so you fully understand deposit requirements, penalties, and other terms before investing in any CD.