Dedicated to Deposits: Deals, Data, and Discussion

5.75% 14-Month CD at Patelco Credit Union

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Patelco Credit Union
Patelco Credit Union has started a new 14-month certificate with a yield of 5.75% APY. The minimum deposit is $1,000, and it requires 50% of the funds to be new to the credit union. They continue to offer a 5.64% APY CD and a 5.75% IRA CD with terms of 12 to 23 months.

Patelco is one of the few credit unions in which anyone can be eligible to join. For more details of this and other Patelco information, please refer to this previous post.

Patelco is privately insured by American Share Insurance (ASI) up to $250K per account. It is not federally insured by the NCUA.
  Tags: Patelco Credit Union, CD rates

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Comments
7 comments.
Comment #1 by Anonymous posted on
Anonymous
In January I received a form letter from Patelco CU asking me to sign that I was aware that they are not insured by NCUA.

I have well over the insured limit which are in various IRA funds. I am now concerned about the stability of the credit union after seeing one taken over.

I will remove the funds as they come due but it will be at least a year. How good is the ASI coverage? Even with a 6% rate I will never do this again.

The account contains a good percentage of my retirement funds.

Really scary!!

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Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Patelco is one of the largest credit unions in size in the nation. So it's likely to be better managed.

I'm afraid I don't have much information on ASI. It would be interesting to see how many ASI insured credit unions have been liquidated, and to see if there were any problems. I'll have to do more research into this.

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Comment #3 by Clark (anonymous) posted on
Clark
I spent quite a bit of time roaming ASI's website and reading the history of private Credit Union insurance. I now feel quite confident in them and the reason(s) why some CU's don't want the federal insurance. I think it's worth your time to research this issue thoroughly and make your own assessment. However, in my case, I'm OK with it. Here's the website:

http://www.americanshare.com/public/index.cfm

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Comment #4 by John (anonymous) posted on
John
Nothing works at Patelco. This CU is dysfunctional. The CSR's are out of touch with reality--nothing they say jives with anything anyone else says. Requirements change often and dramatically. Don't bother with the online application--print and mail a hard copy. Be sure to include a copy of the real Social Security Card, proof of your residence address and a copy of your driver's license or State ID. Although I was told a passport would suffice, I have yet to get confirmation on that. It's a moot point now. Be sure to check with you state's MVD/DMV about getting a certified copy of your driver license. It's possible.

Meanwhile, the communication or lack thereof that I received from Patelco is hilarious. I spent hours last week attempting to FAX the required documents. I pleaded via email so I could be able to send scans of the documents and rec'd no reply. Today at 730 PM, I rec'd a very belated note that the FAX machine was now fixed. Gee, that's nice.

Meanwhile, I had also rec'd today a letter in the mail requesting documents that no one in the CSR dept. has indicated they would require. Beware of this CU. If you try to open an account, keep an open mind--they are going to make you tapdance a lot more than you'd like to. Afterall, it IS located in downtown San Francisco!

Meanwhile, if you don't already have a valid Social Security card, we recommend that you go stand in line and get one--it's soon going to be the de facto new National ID.

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Comment #5 by John (anonymous) posted on
John
I forgot to mention that I spent a long time five days ago attempting to FAX documents to Patelco. days later, as noted, we learn that their FAX has been "fixed," so to speak. Well, I didn't waste any time last week, after I learned that they (Patelco) were all card-carrying San Francisco airheads, I put a fraud alert on all my credit accounts. I suspect that some hacker hijacked their FAX number and everyone who sent anything by that FAX is probably now having their personal information marketed all across Asia. We're safe--at this point--but you really do have to wonder. This is a VERY suspicious credit union. We wish them well.

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Comment #6 by Anonymous posted on
Anonymous
Unlike John, I had a good experience opening an account with patelco. None of the issues he raises. I felt completely confindent in the CSR's as well. On the other hand, my experience with citibank account opening was another story. Took an hour to open an ira with them....and I already have three other accounts with them.

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Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info on Patelco.

Unfortunately, the 5.75% 14-month CD seems to have ended as of 5/5/07

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