Dedicated to Deposits: Deals, Data, and Discussion

5.00% 5-Month CD at a Premier America CU - $5K Max - Easy Membership.


Premier America Credit Union
Update 5/3/08: The last day of this CD special is 5/3/08.

Premier America Credit Union has a new 5% certificate promotion called the 5-5-5 Certificate. It has a yield of 5.00% APY and a term of 5-month with a minimum deposit of $1,000, and a maximum of $5,000. A checking account is required, and funds must be new to the credit union. There's a limit of one certificate per member/social security number.

This promotion is similar to a checking account bonus. The 5% for 5 months with a $5K deposit will earn you about $40 over what you would get with a 3% account. A couple should be able to open two of these to make a net gain of $80. Their best checking account is the Basic Checking which requires only a $25 minimum opening deposit and has no monthly fees.

Special CD May Not Be Available Online

In February Premier America had a similar CD special. At that time, I was told by the credit union that the special CD cannot be opened online. If you don't live near a branch, I was told that after you have joined and opened a checking account, you should be able to mail a check with instructions to open this special CD. A reader mentioned that he was able deposit money into his Premier America savings account via a nearby shared branch and then called the credit union to open the CD. Please contact the credit union for specific instructions.

Hard Credit Pull

Readers in previous posts have mentioned that Premier does a hard credit inquiry in addition to a ChexSystem verification as part of the account opening process. The hard pull can slightly ding your credit score.

Qualifying For Membership and Joining

Field of membership includes members of the Alliance for the Advancement of Arts & Education (AAAE). Anyone can join this organization. According to the membership page:
When you apply for membership, be sure to select "AAAE" on the company listing. Then complete the AAAE application that will be provided during online account opening.

I was able to select AAAE in the credit union's online application when I selected the radio button for "I am a member of an eligible company or organization". A link to an AAAE pdf document was listed. This document stated:
AAAE's one-time membership fee is $25. Premier America Credit Union will grant this fee on your behalf when you join AAAE to become a qualifying member with Premier America Credit Union. The funds will be sent to the AAAE office, and will be used to support arts and education mission.

You can qualify to join Premier without joining AAAE if you live, work, worship or attend school in parts of California or within 10 miles of our Westchase branch in Houston, Texas. In addition, you can be eligible if you're an employee or member of a long list of companies and organizations.

Membership requires a one-time fee of $5 and a minimum deposit of $5 into the savings account.

Turned Down in the Application?

Note, some readers have reported their applications were turned down without explanation. If this happens to you, I recommend calling. Online applications often have issues.

Federally Insured

The credit union is federally insured by the NCUA (Charter # 68428). It has $1.38 billion in assets and 67,597 members.

Another 5% 5-Month CD, but with a $25K Cap

For those who have larger savings, Xceed Financial Credit Union is also offering a 5% 5-month CD, but it has a much larger cap of $25,000. Like Premier America, there are easy ways for anyone to join. This special CD from Xceed was scheduled to end on April 15th, but a reader just informed me that it has been extended to May 30th. Please see this post for more details.

  Tags: California, CD rates, Premier America Credit Union, Texas

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Comment #1 by Anonymous posted on
I opened a Premier American CD online in February and mailed in a check for funding. There were no problems involved with opening this account online and it was easy to talk with the customer service representatives. I don’t live anywhere near a branch and I wasn’t required to make a branch visit. Also, Premier American paid the $25.00 fee for me to join the Alliance for the Advancement of Arts & Education (AAAE). It was a very easy transaction. The only negative factor for me was that I had to open a checking account that I didn’t need and one that I will not use. Fortunately, all that was needed to fund the checking account was $25.00.

For a smaller CD ($1,000.00) I would highly recommend Patelco Credit Union to get their 12 month, 7.00% rate. It is very quick and easy to open an account with them.

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for sharing your experience on this credit union. Glad to read the application process went smoothly.

That is a nice deal at Patelco Credit Union. They also have a decent 4.07% 12-month CD now without any caps. For those interested in these CDs, please refer to this Patelco CU post.

Comment #3 by Mike Crediton (anonymous) posted on
Mike Crediton
Is 7% the best rate at the moment?

Comment #4 by Anonymous posted on
I became a member and opened a checking account with $25.
However, I could not open the 5-5-5 CD online.
How did you do that?

Comment #5 by Anonymous posted on
Can existing members who already opened the 5-6-7 CD previously (5K max, 6 months, 7% APY) apply for this current 5-5-5 promotional CD?