5.50% 20-Month CD at an Illinois CU (Open To All)
Apr 24, 2006 - 5:41 PM by Ken Tumin
Consumers Credit Union is offering four CD specials. The best rate is a 5.50% APY 20-month Jumbo CD. The 10-month Jumbo CD has an APY of 5.25%. The minimum deposit for the Jumbo CD is $100K. The APYs for a minimum deposit of $250 is 5.25% for a 20-month CD and a 5.00% for a 10-month CD.
You can become eligible for membership by joining the Consumers Cooperative Association which requires a one-time, non-refundable $5.00 fee.
The credit union has 5 branches located in the North Chicago area.
The credit union is not NCUA insured. Like Patelco it is insured privately by American Share Insurance. In the small print I noticed it was mentioned that this was by member's choice. I wonder why members would be willing to give up NCUA insurance. Perhaps the credit union would save money this way. I've seen many credit unions which have both NCUA and ASI. The ASI enhances the insured deposits to $250K. This seems like the best choice unless it requires much more cost by the credit union.
You can become eligible for membership by joining the Consumers Cooperative Association which requires a one-time, non-refundable $5.00 fee.
The credit union has 5 branches located in the North Chicago area.
The credit union is not NCUA insured. Like Patelco it is insured privately by American Share Insurance. In the small print I noticed it was mentioned that this was by member's choice. I wonder why members would be willing to give up NCUA insurance. Perhaps the credit union would save money this way. I've seen many credit unions which have both NCUA and ASI. The ASI enhances the insured deposits to $250K. This seems like the best choice unless it requires much more cost by the credit union.
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Patelco (anonymous) - #1, Thursday, April 27, 2006 - 8:38 PM
Federal Insurance provides coverage of up to $100,000 per member/customer. ASI's primary share insurance allows coverage of $250,000 per account. Big difference. Patelco had ASI's excess coverage prior to conversion and still had over $450 million in uninsured deposits even at that level. With private primary insurance we were able to insurance most of that $450 million at a cost per $100 deposited that was less than the federal alternative. Today over 97% of our $3.3 billion in deposits are insured. We also have net-worth of over $400 million or 11% of assets. A very strong financial institution.
"Your Money. More Value. Smart Choice."
Patelco's SVP-CFO
Banking Guy (anonymous) - #2, Friday, April 28, 2006 - 7:36 AM
Thanks for the info. The question of federal insurance or private insurance seems like it may make for an interesting article.
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