Dedicated to Deposits: Deals, Data, and Discussion

6.00% 16-Month CD at Digital CU (Open to All)

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Digital Credit Union (DCU) has just started offering a 6.00% APY 16-month certificate. There's a $500 minimum. It's available as a regular or IRA certificate. DCU is still offering its 5.50% 11-month CD special that I first reported on last month. This one has a $1K minimum. The CD application is available online. This must be printed out and mailed.

According to the account disclosure, CDs under 1-year have a 45-day interest penalty for early withdrawal. CDs with terms of 1 to under 3 years have a 90-day interest penalty. If you close before the first 45 or 90 days, you'll only forfeit the interest for those days (if 7 days or more). These early withdrawal penalties are better than the average bank or credit union.

DCU is one of the credit unions that anyone in the US can join. DCU has a list of 7 associations in which anyone can join to become eligible. The New England Chapter, PRRT&HS is the cheapest to join with a membership fee of $12. The membership application can be done online here.

DCU has branches throughout Massachusetts. There are also a few in New Hampshire, Colorado and Georgia.

DCU is NCUA insured. It's a large credit union with $3.1 billion in assets and 276K members.

Thanks to the commenter who mentioned this new CD special in the finding deals post.


Comments
7 Comments.
Comment #1 by Rammesh (anonymous) posted on
Rammesh
Thanks for sharing the details.

I remember you mentioning that this week we can expect some rate hike. With that and growing rates, do you think its worth locking for 16 months? 6% is attractive but 16 months is....

Thanks

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Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Yes, 16 months is a little long with continued rate hikes occuring. For those who want to lock in high rates, I'm thinking this winter may be a good time. Perhaps Penfed will offer some 7% long term CDs then...

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Comment #3 by Anonymous posted on
Anonymous
"Banking Guy" you're terrific ! Thanks for being spending so much time searching and then giving us a quick glance synopsis of financial doin's. Being I'm a new site visitor, when someone posts a comment that is long enough that the text ends in .... how do we view the entire comment and especially your response ?

Thanks,
Cat

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Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the positive feedback Cat. Those dots that you see (...) are from the poster and not from the blog software. So there's no other page to show additional comments. I often use dots like that to indicate some uncertainty. But I can see how this can be confusing since some sites do use this to indicate that there's more to see.

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Comment #5 by Anonymous posted on
Anonymous
This certificate continues to be a great deal. Do not overlook their free MM account when you open your certificate. Free means you do not have to pay for the first order of checks like you do with their checking accounts. And their MM account has no minimum balance. A MM account will allow you easily to withdraw your certificate interest each month. It also will allow you efficiently to extract your principal when your certificate matures. This unless Check 21 has taken over sixteen months from now.

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Comment #6 by Anonymous posted on
Anonymous
Who did everyone speak to when they opened their cds? I tried calling and since I didn't know anyone's extention number there was a 12 minute wait on hold... Even if you don't know an extention number a name would be great! Thanks!

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Comment #7 by Anonymous posted on
Anonymous
Correction: Original Post said the membership fee for PPRT&HS was $12. In fact it is $15. A membership bought after Oct should be good for all of 2007.

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