Dedicated to Deposits: Deals, Data, and Discussion

5.00% 11-Month CD at a California CU (Cal State 9).

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Update 3/11/08: The special 5% CD has ended.

Cal State 9 Credit Union is offering a special 5.00% APY 11-month certificate. The special is not listed at the credit union's website. A reader mentioned this in the comments, and I called today for additional details. According to the CSR, the minimum deposit is $5,000, and there's no maximum deposit. It's available to both new and existing members, and it's available at all of their branches. Also, it's available as an IRA certificate.

One important note about Cal State 9 is that it was put into conservatorship under the NCUA on November 2007 (see post). Based on this recent news article, the NCUA management is looking into the "combination of Cal State 9 with another credit union." It may be similar to what happened to a Michigan credit union, Huron River Financial, that was placed into conservatorship in early 2007. Later in 2007 it was liquidated and acquired by another Michigan credit union (see post).

When I called Cal State 9 today, the CSR sounded like they would be careful to ensure that members' deposits would remain under the NCUA insurance limits. So if you keep under the NCUA limits, there should not be any risk. Refer to this post for more details about NCUA.

Membership is open to those who reside, work or attend school in the following California counties: Alameda, Contra Costa, San Francisco, Sacramento, or Santa Clara. Membership is also open to students, employees and and those in alumni associations of certain universities. See the membership page for the full details. Membership requires a $5 membership fee and a minimum deposit of $10 in the regular share savings account. Note, a $200 minimum is required to avoid $5/month fee. This is waived if you open an additional account like a CD or checking account.

Branches are located in Berkeley, Oakland, San Francisco, Hayward and Pleasant Hill. The credit union is federally insured by the NCUA (Charter # 64449). The credit union has gone down in size since my September 2007 post. Assets declined from $463.7 million to $339.0 million and the number of members declined from 29,659 to 28,518.

Thanks to the reader who mentioned this credit union in the comments.

  Tags: CD rates, IRA rates

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