Dedicated to Deposits: Deals, Data, and Discussion

6.25% 24-Month CD at a North Carolina CU Still Available (United Services).

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United Services Credit Union is still offering a 6.25% APY 24-month and a 6.00% APY 12-month FLEX certificates of deposit. The minimum is $5K and the maximum deposit is $100K. The credit union also still has a high yield Tiered Money Market account with an APY of 5.70% for balances over $50K. The minimum deposit is $2.5K. Balances between $2.5K and $15K earn 4.70% APY.

I had first posted on this credit union and these CDs in September. A reader just posted his experiences with this credit union and has been quite pleased. He mentioned that the accounts can be opened my mail. He also mentioned the nice features of these FLEX CDs which allow additional deposits during the term. In addition, you're allowed to do a penalty free withdrawal of up to 50% as long a minimum $5K balance remains. These types of accounts reduce the risk of changing interest rates. If rates go down, you can make additional deposits. If rates go up, you can make a partial penalty free withdrawal.

The reader also mentioned that there's a major group eligible to join, but not mentioned on the website: retirees from anywhere can join. Based on what's listed on the website, the field of membership is primarily limited to Select Employer Groups which include employees of any medical facility or medically related group in the Asheville, NC area and surrounding counties of Western North Carolina. You may want to contact the credit union for the details.

Membership requires a one-time fee of $5 and a minimum $25 deposit into a share savings account. Membership application can be submitted online.

The credit union is NCUA insured. It has $30 million in assets and almost 9,000 members. It has a 5 out of 5 star rating (superior) at Bauer Financial.

Thanks to the reader who provided these details about this credit union!

Comments
29 comments.
Comment #1 by Anonymous posted on
Anonymous
I talked to them by phone on 11/1/06 and they will accept retirees.

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Comment #2 by Anonymous posted on
Anonymous
I guess all good things must come to an end. Talked with the senior CSR late this afternoon (11-1-05) and she stated that the CU would stop issing the flex CD as of the close of business TODAY. BOO HOO!

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Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. Sorry to see this end already. I also see that 5.70% Tiered Money Market account has ended. The top rate now is only 5.25%.

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Comment #4 by Anonymous posted on
Anonymous
Odd am not seeing a change to their two year Flex as of 11/02 (afternoon, E.T.) at their rate page. And I have reloaded their rate page a couple of times. It's still showing at 6.25%. I've even saved a copy to my hard drive. Maybe the attractive two year Flex continues to be available. I have not been following their other offerings, so they could have changed without my realizing.

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Comment #5 by Rosemary (anonymous) posted on
Rosemary
I spoke to them on the first and the second of Nov. I was told to enroll on line and they would send me the application. They said the flex CD was still available and she was sending me the application for the CD and told me what I needed to make copies of to verify my information. Should get it in the mail today or tomorrow.

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Comment #6 by Anonymous posted on
Anonymous
From what I'm seeing at their website, news of the death of their Flex CD might have been premature. But they are emphasizing it could end at any time. I would call first before sending them anything. A small opening might remain, but clearly it's late.

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Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
Thanks everyone for the info. Hope they can keep these Flex CDs going for at least a little longer.

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Comment #8 by Anonymous posted on
Anonymous
Well it's still going today, Monday. When I telephoned they even were playing their Flex CD ad as their "on-hold" message. Just my gut feel: I think this Flex CD will be around for a while. At their website it is a solid "GO" as I write this. This is the best CD deal out there right now. And while not open to all, it is open to a very large number of people since all retirees are included. Also a technical note: once your Flex account is open, you may make an unlimited number of additional deposits, up to the account maximum. These will earn the same interest rate earned by the opening deposit.

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Comment #9 by Shanny (anonymous) posted on
Shanny
I got ahold of them right before they closed today and she confirmed what the home page of their website now boldly states, the flex cd will be ending November 17

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Comment #10 by Banking Guy (anonymous) posted on
Banking Guy
Great news! 10 days to lock these in.

No question about it anymore. I don't think they could make it any more clear :-)

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Comment #11 by Anonymous posted on
Anonymous
The CU Rep. told me the Flex CD application package should be mailed out by this Fri.(11/10/06).
The Flex CD will be ending November 17.

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Comment #12 by Anonymous posted on
Anonymous
I signed up online late last week, received my account forms yesterday and returned my account information today (11/14) to get it there by the Friday deadline. You can even bump the rate up once. I opened with the minimum and will fund with a CD that matures in December. If you open by mail, they require notarizaton on the 2 forms. Was easy enough. I've opened several CDs through the use of this site. Thanks for this great posting!

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Comment #13 by Max (anonymous) posted on
Max
I called them on Tues. Nov. 14 and they overnighted an application and said it had to be postmarked before the 17th to be eligible. Which I did. I thought that you could only add money once and withdraw money once up to 50%, but must leave $5,000 in account. You can bump up once during the term. Not sure. Paper said add as you want, but website said add once. At least I think so. Not sure.

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Comment #14 by Anonymous posted on
Anonymous
thanks a million guys!!! im in, drove down in person, cute little town, old fort. opened account on nov. 16, FLEX CD,,,what a deal...6.25% for two years. when i read this post, i said NO WAY!!! well...*w*a*y*

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Comment #15 by Banking Guy (anonymous) posted on
Banking Guy
I'm glad many of you were able to lock in this CD. With rates falling like they have been, we'll probably not see a deal this good for a long time.

For those too late, I'm afraid the best Flex CD rate now is only 4.24% for a 60-month term. There is a regular 5.20% APY 6-month CD, and they still offer a decent tiered money market account with a max rate of 5.15% APY. But that's way down from the 5.70% it use to be.

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Comment #16 by Anonymous posted on
Anonymous
WOW......JUST GOT A LETTER FROM THIS CREDIT UNION! the are reneging on the flex CD terms. "NOW" you CAN"T add more funds, like stated in all the paperwork i signed..is this LEGAL????

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Comment #17 by Banking Guy (anonymous) posted on
Banking Guy
Perhaps the credit union realized that this Flex CD was too costly for them. But, that should be their problem and not your problem.

Check the paperwork to see if there are any small print that gives them the right to change the terms. Also, be sure to call. If they are insistent to change the terms, the NCUA has a Consumer complaint page that may be of help.

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Comment #18 by Anonymous posted on
Anonymous
thanks banking guy, was just wondering. hate to complain with a 6.25% rate! i do believe this offer got away from them, the internet is a HUGE tool, i don't think they expected the LARGE $$$ that poured in late on nov. 17. heck, i drove 2 hours so not to miss it! im NOT going to bite the hands that feed me...LMAO. thanks for the post! "YOU" got this ball rolling......

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Comment #19 by Anonymous posted on
Anonymous
thanks banking guy, was just wondering. hate to complain with a 6.25% rate! i do believe this offer got away from them, the internet is a HUGE tool, i don't think they expected the LARGE $$$ that poured in late on nov. 17. heck, i drove 2 hours so not to miss it! im NOT going to bite the hands that feed me...LMAO. thanks for the post! "YOU" got this ball rolling......

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Comment #20 by Rosemary (anonymous) posted on
Rosemary
Received my letter today also. My letter states additional funds for this flex CD must be received by Jan 12, 2007. On the signature card we signed under authorization it states "I/We agree that the changes on this card amend the previously signed account card and are subject to the terms and conditions of the Membership and Account Agreement, Truth-in-Savings Disclosure. and to the Funds Availability Disclosure, if applicable,and to any amendments the credit union makes from time to time which are incorporated herein.
We received no updated booklets with this letter stating this change incorporated in them. I know of people that opened the CD and were not sent this information. Disclosures are mandatory at the time of opening an account.
I do know that I could find nothing in any of the information booklets they sent about the FLEX CD. Only the paper they sent that said no penalty withdrawal, onetime, of 50%of your funds, add funds during the Flex CD term, one time option to BUMP UP to a higher rate after 6 months.
I printed from their website "Member can exercise a 1 time bump in interest rate at any time after the first 6 months and before the last 3 months. Member can add additional monies to CD at any time. Member can do a 1 time withdrawal of monies without penalty-Up to 50% could be withdrawn but must maintain $5000 minimum balance. Cd is a fixed rate with dividends paid monthly or at maturity. Also the rate was 6.25% an APY was not stated. Law is [at least in a bank that is]that the APY must be quoted first then the rate. APY must always be stated but quoting the rate is optional. The reasoning of this law was so that with the APY being quoted all financial instituions could be compared for the earnings on an account. Some institutions compound continuously, some monthly, quarterly or yearly. Stating the APY eliminates the necessity of asking how an accounts interest is compounded. Does anyone know what the APY of this CD is?
I would assume this was compounded monthly because the interest was initially put into the savings account and then transferred back to the CD upon request. Has anyone contacted or sent a complaint besides me? I submit that we all should.

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Comment #21 by Rosemary (anonymous) posted on
Rosemary
I was given the wrong information when I said 3 booklets were not given to someone. They did receive the booklets.

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Comment #22 by Anonymous posted on
Anonymous
Received a call from the fed's tonight. He said that this credit union is state chartered. Said to call North Carolina's Chamber of Commerce who regulates this credit union. The number he gave me is 919-571-4888. I work only part of the day tomorrow and plan on calling them when I get home.

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Comment #23 by Anonymous posted on
Anonymous
For the benefit of a poster above, and others: the APR on this account is 6.25%. The nominal APY is also 6.25%, but only because USCU does not offer automatic compounding. If you choose their "monthly interest check" option and compound the interest yourself, manually, the APY is going to run slightly north of 6.40%. This assumes you invest your USCU interest in a high yielding external MM account, several of which Banking Guy lists right here on his website. I have already received my first interest check from USCU. It was accurate to the penny and was sent timely. I moved the interest to my MM account where it will compound its little heart out. Will I have to do this each month for the next two years? Yes. Do I care? No, of course not. Unless you have some place else I can invest my money with no risk and earn 6.4+% APY. If you do, please get in touch. We are friends.

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Comment #24 by Anonymous posted on
Anonymous
Actually I am putting the monthly interest check back into the CD I have with them.

My first interest check was added to the CD.

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Comment #25 by Anonymous posted on
Anonymous
You will have to check with USCU to know for certain. But my best understanding is this: Based on a letter recently sent to Flex CD accountholders, you will be unable to move interest back into the account after mid-January. Your option at that point will be to invest your interest into a high yielding MM account, as I suggested above. The difference in your bottom-line yield will only be a few basis points, provided you use the very highest yielding MM accounts Banking Guy references here at his website.

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Comment #26 by Anonymous posted on
Anonymous
I have spoken with Mr. Tony Knox the person in charge of this state chartered credit union. He has received several phone calls of complaint and faxes on the changes made on the flex CD. Mr Knox has spoken to the CEO of the credit union and the matter has been referred to their attorney. Faxes are the suggested way for complaining as they will be sent to the lawyer for review etc. The fax number is 1-919-420-7919

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Comment #27 by Anonymous posted on
Anonymous
My response from the Mr. Knox [the head of state chartered credit unions in North Carolina] on Jan 10, after his conference call with Mr Roth [CEO of United Services CU] and the lawyer Mark Pinkston.

We did have the conference call with Mr. Roth and Attorney, Mark Pinkston. At this point we have been asked to refer all calls or contacts to Mark Pinkston. His contact information is mpinkston@vwlawfirm.com his phone number is 828-258-2991. I will send the contact information including the mailing address by hard copy. Please call him immediately with your question about an additional deposit.

Please call me if you have any questions

Tony Knox

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Comment #28 by Anonymous posted on
Anonymous
Mr. Tony Knox the head of the credit unions [1-919-571-4888 TKnox@nccud.org] in North Carolina is having discussions with the North Carolina Attorney General about United Services taking away the ability to deposit to its flex CD's.

I have had my interest deposited back to the CD in the first month and now the interest is just added to the CD automatically without going to the savings account first. The APY would now be 6.43%

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Comment #29 by Anonymous posted on
Anonymous
Mr. Roth CEO of the United Services Credit Union no longer works there.

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