Dedicated to Deposits: Deals, Data, and Discussion

5.00% 6-Month CD at a Texas CU - with an add-on feature (Amplify).

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Update 2/5/08: The 6-month CD rate has fallen. Please check the credit union's website for the latest rates.

Amplify Credit Union is offering a special 5.00% APY 6-month share certificate. The minimum deposit is $500.

One nice feature with all of Amplify's regular certificates is that you can make additional deposits of at least $500 to the certificate at any time during the term. The new deposits will earn the same rate as the original CD. And unlike WaMu Add-On CDs (WaMu's 5.10% 7-month CD may be ending after 1/28/08 - see post), they don't limit the amount to the initial deposit.

This add-on feature is especially nice for longer term CDs when rates may continue to fall and stay low like they did in 2001. Amplify just recently lowered their long term CD rates, but they're still competitive considering the recent Fed rate cut. The yield for all terms of 9 months to 5 years is 4.00% APY for a $500 minimum deposit. Open a CD with $500 and keep it as a hedge against further rate cuts. When your other CDs mature over the next year or two, you can always add to this CD and at least be guaranteed a 4% APY. If rates fall like they did in 2001, 4% will look very good for a CD.

Early withdrawal penalty is up to 90 days of interest for terms of one year and under. For terms over one year, the penalty is up to 180 days of interest. There's no loss of principal.

Amplify also offers IRA share certificates with terms of 60, 30, 18 and 12 months. The current IRA rates are better than the regular certificates. The top yield is 5.20% APY for a 60-month term and a minimum deposit of $100K. Shorter terms have yields of 5.10% APY. The top yield for a $10K minimum is 4.85% APY for a 60-month term. One drawback of the IRA certificates, however, is that they don't seem to have the add-on feature.

You can apply for membership and open accounts online. Funding can be done with an ACH transfer from another bank or credit union. However, they limit your initial funding to $5,025. After you join, you're able to log in and can initiate ACH transfers into your share savings or checking without the $5K limit. Then you can open a new CD or add to a current CD using their online interface.

Membership is open to anyone who lives, works or attends school in Travis, Williamson, Hays, Caldwell or Bastrop county, Texas. Please refer to their Field of Membership page for more details. Membership requires a minimum deposit of $25 into your share savings account.

Branches are located in Austin, Round Rock and Cedar Park. The credit union is federally insured by the NCUA (Charter # 18304). It has $413.4 million in assets and 40,121 members.

  Tags: CD rates, IRA rates, Texas

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Comments
2 Comments.
Comment #1 by Insider (anonymous) posted on
Insider
This one came and went very quickly - the 5% special stopped on Feb. 2. However, the rest of the CD choices still look quite good, with rates up to around 4.25% APY at the highest balance tiers for most any term. The Money market rates are very competitive as well, paying up to 4% APY on the highest tiers. You can open and fund new accounts completely online as well - no having to go to a branch.

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. I've updated the post .

I especially like the fact that they allow unlimited additional deposits to their CDs. That's a huge plus in this current rate environment.

1