8% 8-Month CD at a California CU ($5K Max)

California Credit Union is offering a special 8% APY 8-month CD. As is typical with these very high rate CDs, there is a low deposit cap of $5K per member. The minimum deposit is $1K. Also, it requires a recurring $500+ direct deposit into a new or current CCU checking account or savings account.

The 8% is about 3% over a 5% CD 8-month that you could get online. So if you deposit the maximum $5K for 8 months, the extra 3% would net you about $100. Since it requires a checking account with direct deposit, it's almost like a checking account sign-up bonus. Just like sign-up bonuses, it's intended as a loss leader with the hopes that you'll become a long term customer. Credit for this find goes to this FW thread.

The credit union also has a $75 bonus for opening a new checking account with direct deposit which I described in this February post. This $75 bonus is valid through the end of this year. Unfortuantely, the terms specify that you can't combine this $75 bonus with the special 8% CD rate.

In addition to this special 8% CD, they are also offering a special 5.25% APY 17-month CD. The CD has a bump-up option. If the standard 18-month CD rate rises above this rate, you have the option to do one-time bump-up in the rate. The standard 18-month certificate of deposit currently pays 4.95% APY so this option could come in handy if rates continue to rise.

The credit union's field of membership primarily includes employees of California schools. However, the FOM also says you can qualify if you are a Parent Teacher Association or Parent Teacher Student Association member. If you're not a member, they can sign you up.

The main office is located in Glendale, California. It has several other branches in Los Angeles, North Hills, Encino, Pasadena and Torrance.