Dedicated to Deposits: Deals, Data, and Discussion

5.50% 9-Month CD at Patelco Credit Union (Available to All) - Update

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Patelco Credit Union
Patelco Credit Union continues to offer a special 5.50% APY 9-month certificate. The minimum deposit is $1,000. I first posted on this back in July, but there has been an important change. It no longer requires a checking account with direct deposit. Only new money is required. I just confirmed this with a customer service rep. She wasn't sure how much longer this special will last, but she hasn't received any early warning about it ending.

The 5.50% APY 9-month certificate is also available in an IRA. There are also other high rate IRA certificates with a yield of 5.40% APY for terms of 24 to 35 months.

Patelco still has its new-member special with a 7% APY 12-month certificate. Unfortunately, the maximum deposit is only $1,000 (see post). Also, refer to that previous post for info on Patelco's Treasury Income Account and HSA, both of which are pretty good deals.

Patelco is one of the few credit unions in which anyone can be eligible to join. See this Patelco page for the full eligibility list. Note at the bottom it states that anyone can join the California Association for Older Americans regardless of age or geographic location. You can apply for Patelco membership online here. In the Eligibility section of the membership application, if you type "Older Americans" in the lookup field, this association should appear in the eligibility list of step 2. According to the CSR, people can join this association at the same time as you join Patelco through this online application.

Patelco membership requires a minimum initial deposit of $1 into the savings account. Note, you'll be charged a $3/month fee if your total deposits (the sum of savings, checking, certificate, IRA, and money market balances) is under $150. This fee will also be waived if you have direct deposit or if you have Patelco's Free Checking Account.

An important issue about Patelco is that it is NOT federally insured by the NCUA. It's privately insured by American Share Insurance (ASI) for up to $250K per account. However, Patelco is in the process of becoming federally insured by the NCUA. I first reported on this in October. I asked the CSR the status of this, but she didn't know the details. She did express confidence that this change-over would be taking place relatively soon. Patelco is a major credit union with $4.28 billion in assets. Bankrate.com gives Patelco 3 out of 5 stars (performing) based on 6/30/07 data.

Update 11/27/07: Patelco CU is scheduled to be federally insured by the NCUA starting on January 1, 2008. Please see this post for more info.
  Tags: Patelco Credit Union, California, CD rates, IRA rates

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Comments
4 comments.
Comment #1 by More CD's in Stockton! (anonymous) posted on
More CD's in Stockton!
Joined Patelco today and opened a $1K 7% New Member Special Certificate, a 5.50% 9-Mo Certificate and their Free Checking account. Was able to fund both certificates immediately via ACH. Used CA Assn of Older Americans to join - no cost to me. Share account minimum is now $1.00 (not $5.00) and they even provide the $1.00 :) Spoke to one of their CSR's and she was most helpful. So far I'm very impressed! Thx for the tip!

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Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. Was the $1 deposit for the share account made by Patelco during the online application?

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Comment #3 by More CD's in Stockton! (anonymous) posted on
More CD's in Stockton!
Q: Was the $1 deposit for the share account made by Patelco during the online application?

A: It was apparently done automatically. I simply applied for the New Member Certificate Special ($1k @ 7%) and funded the $1K via ACH. There was no mention during the application of a regular Share Account requirement. Then once I established on-line access and logged in, both the New Member Certificate and the Regular Share Account (with $1 funded) appeared.

I called their 800 # later with some questions during which I inquired about whether the share account required a $5 minimum and where the $1 had come from and the CSR said they had changed the minimum to $1 (I'm not sure when) and that they funded the $1.

Sure enough, when I checked my local bank for the ACH transactions this morning they had executed both transactions for the 2 Certificates as I'd specified and there was no additional $1 charge for the Share Account funding. Both accounts are showing up at Patelco this morning as funded. They seem to be pretty efficient.

I wonder what I can buy today for $1? :)

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Comment #4 by Vickifool (anonymous) posted on
Vickifool
My husband and I were each eligible to open a 7% new member special CD. PatelCo treats each person separately regardless of whether the accounts are joint or trust accounts or California is a community property state.

PatelCo took the balance of my husband's share account for a "low balance fee." His new member special CD had matured and he moved the money elsewhere. Our other CDs happened to be with me as the primary, so he no longer had a qualifying account to waive the low balance fee.

We closed his membership. In 90 days he'll be eligible for another new member special.

PatelCo changes rates on THURSDAY, so we missed the great rate mentioned in the weekly summary.

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