Dedicated to Deposits: Deals, Data, and Discussion

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


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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Comment #1 by Anonymous posted on
I had 2 CD's with CalState 9 CU that recently matured at a yield of 6%. I rolled the CD's over to this 5% 11-Mo CD. Of course this yield is not nearly as good as the yield 6 months ago, but today, it looks pretty good! I made sure to keep the balance below the $100K, to always be on the safe side. I have been satisfied with their service.

Comment #2 by Anonymous posted on
So I understand this is a local deal, but I expected there to be more comments on this one by now. Does that mean most of you aren't interested due to the conservatorship issue? Would it be unwise to open up a new account with Cal State 9 at this point? My previous CD just matured and I'm trying to decide between this one and Alliant's 4.9% 12-month deal. Any advice? Thanks.

Comment #3 by Anonymous posted on
I'm interested but am awaiting funds from a CD that's soon to mature. In speaking with rep today, I learned the deal's been available for about a month and, being a promotion, is subject to change at any moment.

I also have one at Alliant and am pretty impressed with their systems and interface. The Alliant CD requires a higher minimum ($25K) but offers some flexibility in term (12 to 24 months, you pick, according to web).

Given insurance, I don't think the conservatorship is a big issue. With another Fed rate reduction imminent, you might also want to factor in how easy each place lets you lock in the deal.

Comment #4 by Anonymous posted on
Well, I guess I waited too long. Called today and found out the deal ended yesterday. Funny since the rep I talked to yesterday led me to believe it'd be around for at least a little while. Guess I'll have to go with Alliant and their hard pull and stupid PTA requirement. That is, if that deal's still around today. ::GULP::

Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. Sorry to see the special end.