Dedicated to Deposits: Deals, Data, and Discussion

7.62% 12-Month CD at a Maryland CU - $200K Max (SECU).

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SECU Credit Union has an exellent special called the Celebration CD. It provides a bonus rate of 2.5% of the opening CD balance, and that amount will be credited when the CD is established. This is added on to the 5.0% APY of the 12-month certificate of deposit. This gives the CD an APY of 7.62%. The minimum deposit is $500 and the maximum is $200K. This is also available as an IRA CD. I just called and confirmed that this CD is available through this Saturday, October 21, 2006.

The field of membership includes alumni, full and part-time students, faculty and staff of several Maryland schools and universities. It also includes Maryland state employees and several other select employee groups. See site for details.

Branches are located in the Maryland cities of Baltimore, Annapolis, Berwyn Heights, Columbia, Glen Burnie, Hagerstown, LaVale, Rockville, Salisbury, Silver Spring and Towson.

The credit union is NCUA insured. It also has Excess Share Insurance which provides an additional $100K of private insurance in excess of the federal insurance limit. Also note, like FDIC insurance, the NCUA can provide coverage over $100K. See previous post for more info.

Credit for this find goes to this SlickDeals thread.


Comments
10 Comments.
Comment #1 by Andrew Atkin (anonymous) posted on
Andrew Atkin
I just spoke with a representative at SECU. According to that rep, this CD automatically renews for an additional 12 month term (without the bonus for the 2nd yr). Thus, this appears to be more like a 2 yr CD, with a bonus for the first yr. This seems to be confirmed from the following language on the web page for the Celebration CD:

"Savings CD will automatically renew at maturity to a standard CD with a 12-month term. Upon maturity, IRA CD will transfer to an IRA Share Savings account."

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Comment #2 by Anonymous posted on
Anonymous
Doesn't most CDs automatically renew unless you tell them not to?

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Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
Yes, that's how I interepreted this as. The 12-month CD with the bonus would renew into a regular 12-month CD (not one with another bonus). There should be a grace period in which you have the opportunity to close the CD without penalty at maturity. I don't know what the grace period is.

According to the PDF application, the early withdrawal penalty is 270 days of interest (earn or unearned).

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Comment #4 by will (anonymous) posted on
will
I spoke with a SECU representative. She said you don't have an option at maturity. There is no choice but to let it renew after the 12 mo period.

Also anyone just wanting to open the CD, the requirement for membership is active Share Savings account with $10 balance. If you don't have any activity within a 6 month period, your accounts (Share Savings & CD) are closed. At which time I presume the account could be considered abandoned and the money handed over to the state.

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Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
Will, Thanks for the info.

Are you sure there's no grace period? Even though a CD renews into another term, the grace period right after maturity allows you to make a penalty-free withdrawal.

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Comment #6 by Anonymous posted on
Anonymous
I was told that there is a 7 day grace period (including the maturity date) earlier today. She kept mentioning how this is a limited time special and may disapper any time now, so she was obviously talking about this CD. The Account Terms and Conditions they have on their "Forms" page says the same thing under the Share Certificate Account Provisions.

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Comment #8 by tuphatt (anonymous) posted on
tuphatt
I got tired of chasing the application I submitted online, and went into a branch (Rockville). It went very smoothly. Opened: the required share acct ($10); checking ($25), in order to eventually get the $75 bonus; and a Celebration CD ($XXk). It is crystal clear that the term of the CD is 1 yr -- like almost all CDs, it will automatically renew unless you intervene, which you absolutely can. In my case, the combined balances will keep my checking acct fee-free (with a couple of boxes of free personalized checks).

The CSR I dealt with indicated that there was some uncertainty about when the CD promo would end, but it could be as early as Friday, Oct. 20. So, if you are still in process on membership app, and can at all make it into a branch, I think that's your best bet.

Peace, tuphatt

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Comment #9 by tuphatt (anonymous) posted on
tuphatt
One more note about my acct opening (described above): I am able tonight to access my accts online. All have correct balances, with the 2.5% bonus credit added to the principal of the CD (and reported as YTD interest). Maybe I am easily impressed, but same-day online set-up for a credit union is more the exception than the rule.

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Comment #10 by Anonymous posted on
Anonymous
After speaking to a rep, today I next day Fed-Exed all the required documents to set up membership and meet the deadline for the CD.

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