I just called Patelco Credit Union today to ask some questions, and I was told by the Patelco rep that the special 9-month CD is scheduled to end Saturday (1/5/2008) at the end of day (which is 2:00pm PST for Saturday). You should be able to apply for this CD online before then and be guaranteed the rate. I was told this applies to both funding by ACH or check. Also, I was told there's no limit to the amount of the ACH transfer.
Here are some other details about this special 9-month CD that I was told by the CSR:
- All interest is credited at maturity.
- There's no direct deposit requirement. It use to have this requirement, but it was dropped.
- If you have to do an early withdrawal, you'll lose all of the interest. But you won't lose any principal.
- The grace period at maturity is 10 days
- At maturity you can call to close the CD and have the funds transfered to your Patelco savings or checking account
- They'll send you a form 30 days before maturity in which you can instruct them to close it and have the money transfered
- No paper certificate or receipt will be sent. You'll receive monthly statements that will include the CD and the CDs will show up online.
- Beneficiaries can be added. They will send you a form.
Note, the interest rate is 5.46% with an APY of 5.50%. Even though there's no compounding, I believe the rate is a little lower than the APY since it's only a 9-month term. APY is a little confusing for terms under one year. It assumes the money will be compounded at the maturity of the sub-year term. You can review the details of the APY formula at this Investopedia article. For this 9-month CD, the periodic rate would be (5.46/100)*(9/12). The number of periods would be 12/9. By using that formula, I got an APY of 5.4969%.
I also asked about membership and savings/checking account questions. As one commenter noted, quirky fees and conditions may come and go. So it's best to speak to a Patelco rep directly (1-800-358-8228).
- $20 membership is being waived. This is consistent with what I've been told a few times before. Also, I and others have reported not being charged this.
- $3/month fee may be charged if your total deposits are under $150. This fee will also be waived if you have direct deposit or if you have Patelco's Free Checking Account. This fee is also mentioned at this Patelco page.
- There's no hard credit inquiry for joining or opening deposit accounts. I was told it's only a soft pull. A hard pull will only be done for loan applications. Note, I just checked my credit report today, and I did only received a SOFT pull via Experian.
For more info for joining Patelco Credit Union and other Patelco details, please refer to this previous Patelco post.