Dedicated to Deposits: Deals, Data, and Discussion

5.20% 5-Month CD at Digital Credit Union - Easy Membership

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Digital Credit Union
Digital Credit Union (DCU) is offering a special 5.20% APY 5-month certificate. The minimum deposit is $500. This special has been available for several months, but with the current rate environment, it's now looking more competitive. DCU hasn't offered any great CD deals this year like they did in 2006 when they were offering a 6% 16-month CD.

For those who open a DCU CD, you might also want to consider their money market account. A reader in a previous post had recommended this. It doesn't have the best rates, but it's a free account with no minimum balance requirements and the first order of check is is free. This account can be used to efficiently extract your principal when your certificate matures.

In addition to this CD special, you can also get a 5.50% APY 5-year IRA CD). However, these non-special CD's have some requirements to get the listed rates. To receive the 5.50% APY you need to have the Loyalty Checking Plus relation. This requires a checking account, either maintain direct deposit into the DCU checking account or use DCU Bill Payer regularly, have and use a DCU Visa Credit Card, and maintain at least $250 in a DCU savings account, money market account, CD or IRA.

In addition to the 5.50% APY IRA, there's also a 5.50% APY 60-month American Dream Certificate. It requires the Loyalty Checking Plus relationship. The minimum deposit is $100 and the maximum balance is $25K. It's intended for members who are not already homeowners. You can make a penalty-free withdrawal if you show proof of a home purchase before the end of the 5 years. If you need to use the money for something besides a home purchase before the maturity date, there's a 180 day interest early withdrawal penalty. So it seems like a regular CD with the benefit of a no-penalty early withdrawal if you do purchase a home.

Anyone can join DCU. This can be done online. In the first page of this online application, you can choose eligibility via selecting to join one of organizations. The least expensive membership is $15 for either the AAPD or the New England Chapter, PRRT&HS. Membership is only required when you join the credit union. Once you're a credit union member, you no longer have to maintain membership in the organization.

DCU is federally insured by the NCUA (Charter # 23521). It's a large credit union with $3.8 billion in assets and 325,143 members.
  Tags: Massachusetts, Digital Credit Union, CD rates, IRA rates

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