Dedicated to Deposits: Deals, Data, and Discussion

8.00% 8-Month ($5K max) / 5.92% 17-Month CD at a California CU


California Credit Union is still offering a special 8% APY 8-month share certificate. There's a maximum 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.

I had first reported on this 8% special in early May. At that time the credit union was also offering a 5.25% 17-month CD with a bump-up option called the Freedom Option Bump-up Share Certificate. The rate of this CD is now up to 5.92% APY with the same 17 month term. The minimum deposit is $10K. The bump-up option provides the option to have a one-time bump-up in the rate during the term to the current regular 17-month certificate rate available at the time of change.

The 8% is 2.5% over a 5.50% CD 8-month that you could get at online banks. So if you deposit the maximum $5K for 8 months, the extra 2.5% would net you about $83. 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.

The credit union also still 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.

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.

Comment #1 by Banking Guy (anonymous) posted on
Banking Guy
The 8% 8-month CD seems to have finally ended. It's no longer listed as of Oct 21, 2006