Dedicated to Deposits: Deals, Data, and Discussion

5.05% 13-Month Bump-Up CD at a CA CU (Open to All)

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Kinecta Federal Credit Union is offering a 5.05% APY 13-month Bump-Up Certificate. The CD has a minimum deposit requirement of $1K and 50% must be funded by new money. The bump-up feature allows a one-time request for a rate adjustment to the rate of the 1-year CD. The new rate will carry forward until the original maturity date.

I don't think the bump-up feature will be useful for this CD. The credit union's current APY for a 1-year CD is only 4.30%. I would consider it unlikely that this 1-year CD yield will jump to over 5.05% in the next year. Nevertheless, the 5.05% APY for a 13-month term is great without any other benefit.

Kinecta FCU appears to be another credit union in which anyone can join by just becoming a member of a non-profit society called the Consumers Cooperative Society of Santa Monica. Membership into this society requires a $10 fee.

Another nice thing about Kinecta is that it seems to have a comprehensive online banking system which even allows opening a share certificate online. However, becoming a member still requires printing and mailing the application. For those who don't live near a Kinecta branch, it may be questionable if this CD deal is good enough to make it worthwhile to apply. If the application takes too long, you could miss out on this CD. However, if Kinecta often has similar CD deals, a longterm membership could be worthwhile. All that is required to maintain membership is $5 in the savings account. Also, there's a free no-minimum balance checking account. Linking the savings or checking account to an online bank could make it easy to transfer out matured CDs or transfer money in for new CDs.

Kinecta has branches in several California cities including Brea, Hawthorne, Irvine, Malibu, Manhattan Beach, El Segundo, Goleta, Santa Monica and Torrance.


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