Dedicated to Deposits: Deals, Data, and Discussion

6.00% 12-Month CD at Huron River Area Credit Union (Open to All)

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Huron River Area Credit Union has a new 6% CD special. It's a 6% APY 12-month certificate of deposit. It has a minimum of $5,000 and a maximum deposit of $100,000. The offer expires on February 28, 2007.

Anyone is eligible to join the credit union by enrolling in the organization Learn & Earn Credit.org. In addition, the field of membership includes select employer groups and other affiliations in the Washtenaw, Livingston, Wayne, Oakland, and Macomb counties. Please refer to their membership page for more details. Credit union membership requires a minimum $6 deposit into your regular savings account.

When I had contacted the credit union last year, the CSR mailed me the application with detailed instructions. The application includes a line in which you agree to join the Learn & Earn Credit organization for a $1 fee. You must mail in a copy of your driver's license and a notarized signature. Please refer to the credit union's website to request more info.

I was surprised to see this new CD promo at Huron. For the last three months, they've been having other 6% CD specials with terms of 4 and 6 months, but I guess they're still trying to bring in more deposits. My last post on them was in early January.

Branches are located in the Michigan cities of Ann Arbor, Chelsea, Auburn Hills, Centerline, Howell and Brighton. The credit union is federally insured by the NCUA. It's a moderate size credit union with $348.8 million in assets and 39,318 members.

Thanks to the reader who emailed me news of this CD promotion.

[Update 2/20/07: Please see this post for news regarding Huron River Area CU.]

  Tags: Michigan, CD rates

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Comments
14 Comments.
Comment #1 by Anonymous posted on
Anonymous
My experience with joining this CU for the 4 month CD was very good ie no problem. Take about a week between mailing the check and for it to be processed which was no big deal since it was still earning 5.37% interest. You can mail in the check and proof of id at the same time as the membership application. You then need to request on-line access using the link at the website and the id/password information was mailed to me about a week after the request. I also received a form letter from the CU president expressing appreciation for supporting the CU, which is unusual but now I figure it's probably because the CU is on a membership/fund drive so they probably want to go the extra mile.

1
Comment #2 by Anonymous posted on
Anonymous
Be sure you won't need it!

Unusually severe early withdrawal penalty. Will attack principal.

"Fixed Certificate of Deposit Rates
TRUTH-IN-SAVINGS DISCLOSURE...

"The penalty we may impose will equal 90 days interest on the amount withdrawn plus the amount of interest earned on the amount withdrawn in excess of the amount of interest that would have been earned at the lowest Regular Savings account rate at the time of Term Share opening."
http://www.hracu.org/newsite/disclosure.htm


Current lowest Regular Savings rate is 1%, so early withdrawal penalty at 6 months would be 4% of the principal.

(3/12 * 6% ) = 1.5%
plus
(6% - 1%)* (6/12) = 2.5%

adds up to 4%

1
Comment #3 by Anonymous posted on
Anonymous
NCUA number 62465.
Federally Insured
http://webapps.ncua.gov/ncuafpr/OnlineFPR.aspx

Grown from $252M to $363M in the last year.. in Michigan???

Making a lot of loans.

No phone center; no 800 number. It appears that you call a branch to reach them.

1
Comment #4 by SVG (anonymous) posted on
SVG
Hassel Factor

Yes ... it is possible to open the account via mail. However it is a hassel to take an appointment of a Notary, go to him/her, get the signature notarized, pay him/her and then mail the application.

If the account is a joint account then it is ncecessary for two persons to co-ordinate their Notary visit (perhaps the Notary will charge double to get two signatures notarized !) I guess this hassel may hold back a few. ...

I wonder why Huron River needs all this Notarization ... Treasury Direct, USAA, PenFed don't need anything like this.

- SVG

1
Comment #5 by Anonymous posted on
Anonymous
re notarized signature, usually the local bank that you bank with will provide this service for free. I usually just stop by the branch and either wait for a service manager or go straight up to a teller, no appt. necessary.

1
Comment #6 by SVG (anonymous) posted on
SVG
Anon,

Indeed ... even my local bank does the notarization for free. However they do it by appointment only. Goes without saying that one has to make oneself available for notarization during banking hours.

Perhaps it will be much simpler for a few if Huron just asks for copies Utility Bill / Credit Card Statement (besides copies of Driver License / Social Security Card).

- SVG

1
Comment #7 by Anonymous posted on
Anonymous
Where I live, for a fee you can get documents notarized at The UPS Store and at most Currency Exchanges (check cashing stores/payday loan places), no appointments accepted. Real estate offices are also good resources. They usually have someone on staff who is a notary and will stamp a simple document for you for no charge (and then ask you to refer anyone you know who is looking to buy/sell to them).

And, yes, a paid notary usually charges per signature.

This is the first time I've ever heard of having to make an appointment with a notary (other than a mobile notary). It takes all of 30 seconds to look at your drivers license and stamp your document.

1
Comment #8 by Anonymous posted on
Anonymous
Is it harmful toopen join too many CUs? What do you do when the CD matures?

1
Comment #9 by Banking Guy (anonymous) posted on
Banking Guy
Some credit unions do a hard credit pull when you join. This can have a temporary negative effect on your credit score. I'm not sure if Huron River Area does this.

When the CD matures, you could have them transfer the money into your Huron savings account. Then you could transfer it using an ACH pull from your online bank. I've done this at my credit unions and banks. You may also be able to have them send you a check or initiate a wire transfer to another bank, but I haven't asked about this so I'm not sure what their policy is. I will follow up with Huron on these issues.

1
Comment #10 by Anonymous posted on
Anonymous
I cannot get the learn and earn credit site to open on my "dial up" connection. How much is it to join? Requirements? Thank you.

1
Comment #11 by Anonymous posted on
Anonymous
To meet eligibility requirements by joining Learn & Earn you need only check a box on HRACU membership application and include the requisite $1 fee with submission to credit union. I do not believe HRACU application form is online; you will need to request that by phone. I requested my form for a previous promotion (6 month, 6%) and it took two weeks to arrive by mail, causing me to miss the deadline. I was able to use that same form for this 12 month CD. You may want to ask credit union about expediting package to you.

1
Comment #12 by Banking Guy (anonymous) posted on
Banking Guy
A reader just sent me an email with the following info about Huron. Note, this doesn't seem to be listed yet at the Michigan Government site:

Lansing, MI - The Michigan Office of Financial and Insurance Services (OFIS) today announced that Huron River Area Credit Union of Ann Arbor, a state-chartered credit union, has been placed into conservatorship.
OFIS Commissioner Linda A. Watters has appointed the National Credit Union Administration (NCUA) as agent for the conservator. Watters determined that it was necessary to appoint a conservator in order to conserve the assets of the credit union for the benefit of its members, depositors and other creditors.
“The decision to conserve a credit union enables the institution to continue normal operations with expert management in place,” Watters said. “Our main goal is to continue service to the members and ensure a safe, sound credit union operation.”
Huron River Area Credit Union will remain operational and member service will continue uninterrupted. Credit union members are free to make deposits, access funds, make loan payments and use share drafts.
Member funds are federally insured up to $100,000 per account by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund managed by NCUA and backed by the full faith and credit of the U.S. Government.

1
Comment #13 by Anonymous posted on
Anonymous
It is posted here ..
http://www.hracu.org/newsite/

Should we concern or relieve?

1
Comment #14 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the link.

New management may result in fewer promotions. We may not see 6% CD deals. Don't know if it will increase the chance of failure in which NCUA would have to cover deposits. It'll be interesting to see what percentage of credit unions placed into conservatorships end up failing.

1