Dedicated to Deposits: Deals, Data, and Discussion

Patelco's 5.70% Treasury Income Account


Patelco Credit Union has a special type of savings account called the Treasury Income Account. The rate is tied to the average of the previous 12 weeks' auction yields of the 6-month US Treasury Bill. It changes every quarter and was just increased from 5.56% APY to 5.70% APY. It has a $25k minimum requirement ($500 for an IRA). It's not as liquid as a typical savings account. It requires six months advance notice to withdraw funds. You can also schedule monthly payments from this account. As this FW thread suggests, you could schedule a large monthly payment to yourself and redeposit it back in for maximum liquidity.

Patelco is still offering several high yield CDs including a 5.75% APY 8-month CD (see post) and a 6.00% Flexible-Term Bump certificate. You can choose a term from 12 to 23 months (see post). These CDs have a minimum of $1,000.

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. According to Patelco "Anyone can join this assocation, regardless of age or geographic location. Just indicate California Association for Older Americans on your application." I wasn't able to find the website of this association, so I called Patelco about how to join. They can mail or fax you the application. There is no fee to join this association.

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. A $5 deposit is also required to a savings account. According to the CSR, they do not do a hard credit pull, just a soft pull.

The only 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. Patelco is a large credit union with over $3.8 billion in assets. So the chances of losing your money is very minimal in my opinion. It should be noted that Patelco doesn't have best rating. It has just an average rating for financial strength at of 3 out of 5 stars (performing).

Comment #1 by Anonymous posted on
On 4-Jan-2007, the APY dropped to 5.64%. Still pretty good.

Comment #2 by Dave (anonymous) posted on
Dropped like a rock. 4.25% on Jan 20th.