Dedicated to Deposits: Deals, Data, and Discussion

4.60% 24-Month / 4.08% 12-Month CD at a California CU - up to 4.91% (Los Angeles).

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Update 3/24/08: The CD rates went down today. Please check the credit union's website for the latest rates.

Los Angeles Federal Credit Union has some very competitive rates on its share certificate with terms of 24 to 35 months. The highest yield is 4.91% APY with a $100K minimum for the Senior Jumbo share certificate. You must be 55 years or older to qualify for the Senior share certificates. A Jumbo share certificate, a Senior share certificate with a $1,000 minimum, and an IRA certificate with a $500 minimum have a yield of 4.75% APY. A regular share certificate with a $1,000 minimum has a yield of 4.60% APY.

Many of the other CD terms also have yields above 4% which are hard to find these days. For a $1,000 minimum, the yield for terms from 12 to 23 months is 4.08% APY, and the yield for terms over 35 months is 4.34% APY.

I last reported on this credit union in January. At that time their Senior Jumbo share certificate rates were as high as 5.30%.

Membership is open to members of the Los Angeles Charitable Association. Membership in this association is open to anyone living in the greater Los Angeles, California area. The fee to join the association is $1. You can also be eligible to join the credit union through select employer groups. Please refer to their Membershiup Eligibility page for the full details.

There's a $5 credit union membership fee (can be waived with a LAFCU Visa card application), and membership requires a $5 balance in your share savings account. To avoid monthly fees, you must maintain a $50 balance. Please see the bottom of the eligibility page for more details.

Branches are located in Culver City, El Monte, Gardena, Glendale, Downtown Los Angeles and Van Nuys. The credit union is federally insured by the NCUA (Charter # 1207). It has $607.1 million in assets and 46,889 members.
  Tags: California, CD rates, IRA rates

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Comments
6 comments.
Comment #1 by Anonymous posted on
Anonymous
Can anyone tell me how far the "greater Los Angeles" area extends?

1
Comment #2 by Anonymous posted on
Anonymous
Los Angeles Metro Area which only includes Los Angeles and Orange Counties) is the agglomeration of urbanized area around the county of Los Angeles, California, United States. Greater Los Angeles includes the Los Angeles metropolitan area (Los Angeles & Orange Counties) as well as the Riverside-San Bernardino-Ontario Metropolitan Area, and the Oxnard-Thousand Oaks-Ventura Metro Area. San Diego and Imperial Counties, while a part of Southern California, are not included in this agglomeration.

1
Comment #3 by tracyho (anonymous) posted on
tracyho
Great to read that ,


tracy ho
wisdomgettingloaded

1
Comment #4 by Anonymous posted on
Anonymous
From the site it looks like these rates have expired as of 3/24/08.

1
Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
Yup, I see they went down quite a bit. They sure didn't last long.

1
Comment #6 by Jurupa (anonymous) posted on
Jurupa
Of course the rates went down.

No bank can afford to pay close to 5% for a CD. The bank would have to be desperate.

Banks will lose money on the deal if they pay 5% interest when the Fed Funds rate is almost 2%.

Rewards Checking can pay 5% if the balance cap is small because they are hoping to profit on lots of debit card transactions. If the bank sees they are not making enough money on the debit card transactions, they will lower their rate (which some have already done).

I predict banks and credit unions were sold a bill of goods by the creators of the whole Rewards Checking thing. Promises of big money from debit card transactions. But banks are seeing now that many people will do the small transactions trick just to get them out of the way. Or, lots of people won't think it is worth it to have to jump through the hoops every month, so they will pass on Rewards Checking altogether.

I predict Rewards Checking will turn out to be a disappointment or a failure to many banks and credit unions.

Of course, I could be wrong.

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