Dedicated to Deposits: Deals, Data, and Discussion

5.75% 8-Month CD a Patelco CU (Available to All)


Patelco Credit Union has improved its CD special called the Super Saver Certificate. The new offer is a 5.75% APY 8-month certificate (up from 5.35%) with a $1K minimum opening deposit. Additional deposits can be made during the term. The deposits must be at least $500. At least 50% of the funds used to open the account must be new money. The certificate is also available as an IRA with a $500 minimum opening balance.

Patelco has an easy field of membership. If you don't live, work or worship in any of the dozens of California cities that make up part of its FOM, you can be eligible by joining the California Association for Older Americans which is open to anyone.

Another nice feature of Patelco is that you can apply for membership and open accounts online. However, there's a $20 non-refundable new member fee.

One negative regarding Patelco, in my opinion, is the lack of NCUA insurance. Patelco is privately insured by American Share Insurance (ASI) up to $250K per account. There is an advantage of ASI over NCUA in that it covers larger balances. Although there are ways that NCUA can go above $100K for different ownership categories (see post). And now NCUA covers IRA accounts up to $250K. Refer to my previous post on Patelco for more discussion on Patelco and NCUA insurance.

Comment #1 by Anonymous posted on
I followed your advice about checking out old low 4% CD's on the Bank Certificate of Deposit Decision Helper that you published some time ago. The 4%APY CD was a 3yr, with Patelco. It worked out that even paying the penalty I would be at least $250. ahead by withdrawing the funds, which I did a couple days ago and placed them at World Savings 3Mo 5.76APY. Then today I see that Patelco is raising their rates. I is hard to keep ahead but with your help we have a "fighting chance" Thank you so much.

Comment #2 by PekinBoy (anonymous) posted on
I just thought I would comment on Patelco since I have had many accounts with them over the past 6-7 years. Overall, I would rate them above average and they consistently offer better rates than most banking institutions. I did, however, start moving money out of Patelco to take advantage of better returns elsewhere, and their "new money" requirements can be tiresome. I understand that "new money" is part of the game, but that has forced me to take money out of Patelco which I don't really see as being advantageous to them.

In any event, I now use Patelco whenever I can. For example, about six months ago, I moved money out of Patelco and used it to open a Money Market account in NY. Then, quite recently, they started to offer a “Insured Variable Money Fund” requiring new money and a $10K minimum. This has a rate of 4.48% (4.57% APY) with dividends paid monthly. Now my money is back at Patelco.

One last note, I also broke my 4% 36 month CD with Patelco to open another World Savings CD. With a year left until maturity on the Patelco CD it was a "no-brainer" to take the interest penalty.

Comment #3 by Anonymous posted on
Just opened an account with them. They are waiving the membership fee for this month, plus they are giving a dollar as an initial deposit for the savings account when you join as a member this month.

Comment #4 by Anonymous posted on
Thanks anonymous for the information. The CD rate ends at the end of the month so hopefully, I can get in on time.

Comment #5 by Anonymous posted on
this bank has a hard inquiry and a $20 membership fee.
Please consider this before you open it!!!