Dedicated to Deposits: Deals, Data, and Discussion

6.19% 6-Month CD at a California CU (LA FCU).

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Los Angeles Federal Credit Union is offering a New Year's special share certificate with a rate of 6.19% APY for a 6-month term. The minimum deposit is $1,000, and it requires new money. It's available until January 31, 2007.

The credit union also has a high rate on CDs with terms of 24 to 35 months. Members 55 or older can get a rate of 5.97% APY for a minimum of $100K or 5.81% APY for a minimum of $1K. All members can get a rate of 5.81% APY for a minimum of $100K or 5.66% for a minimum of $1K.

The field of membership includes members of the Los Angeles Charitable Association, Inc.. It has a membership fee of at least $1. You can be immediately eligible via select employee groups and by family. See site for details.

There's a $5 credit union membership fee (can be waived with a LAFCU Visa card application), and membership requires a $5 balance in your share savings account. To avoid monthly fees, you must maintain a $50 balance. Joining the association, joining the credit union and opening a CD can all be done by mail.

The credit union is federally insured by the NCUA. It has $571 million in assets and 43,624 members.

Thanks to the reader who emailed me this special.
  Tags: California, CD rates

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Comments
7 comments.
Comment #1 by Bozo (anonymous) posted on
Bozo
This offer is a good example
of why I don't get all nervous
and jerky about falling rates.

Specials will always be out
there, you just have to be alert.

Since anything above 5% is a nice
return at this point, these spec-
ials are quite worthy.

Yours,

Bozo

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
I have a feeling that the credit union wants to keep membership local to the LA area. I noticed the following change to who's eligible to join the LA Charitable Association:

Previously at the LA Charitable Association page:

You qualify to join LACA if you:

* Live in the greater Los Angeles area, and/or are concerned with the philanthropic needs of this area and want to assist LACA in fulfilling its purpose

Now, it's as follows:

You qualify to join LACA if you:

* Live in the greater Los Angeles area and are concerned with the philanthropic needs of this area and want to assist LACA in fulfilling its purpose

1
Comment #3 by Anonymous posted on
Anonymous
MCT credit union answers emails within a few hours even though they have a long hold time when phoning. I opened a five year jmubo cd at 6.37apy as a member of the National Associion of School Psychologists.

1
Comment #4 by Anonymous posted on
Anonymous
The phone rep I spoke with said we could not join the credit union unless we also live in the LA area. If we had a family member from the area join, then we would qualify even though out-of-state.

1
Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. I had a feeling this might be the case when the LA Charitable Association page changed the "and/or" to just "and".

1
Comment #6 by Anonymous posted on
Anonymous
Heads Up - LAFCU seems to be making up/changing the rules as they go, despite what they advertise and verbally promise potential members. After submitting my application following discussion with a LAFCU representative in which I asked LAFCU representative to clarify the exact terms and validity dates applicable to the terms he described to me which he said was Jan 31, 2007, I was told by LAFCU Membership they would not honor my application with these terms. Despite my following instructions and application materials being received well before the deadline of Jan 31, 2007 the previous representative explained to me, LAFCU Member Services would not honor the terms the representative I had been working with gave me. They wasted my time and could waste yours, so be cautious. End result I have no account at LAFCU, have lost opportunity for other financial options while trying to work with LAFCU, and feel deceived. BTW - in conversation the member services representative who refused to execute my application mentioned LAFCU had received more response than they expected to their promotional offer. This might explain why LAFCU is not honoring my business and is changing terms of offer and changing who is eligible.

1
Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the heads up and sorry to read about you being denied membership.

A reader mentioned that they have set a maximum deposit limit of $50K on this 6.19% CD. Looks like they didn't anticipate the demand on this special.

1