Commonwealth Credit Union is advertising a Happy Birthday special CD for children. You can deposit up to $1,000 in the CD under the name of a minor. The account pays 10% APY, and the maturity date is the child's 18th birthday. Your child must be between the ages of 8 to 17.
They have a table showing how much the CD will grow. The best case is if your child is 8 years old, and you get 10 years of compounding. The $1,000 deposit would grow to $2,594 at maturity. As a comparison, the $1,000 would grow to only $1,629 in a 5% CD. So you'll make $965 more than you would in a 5% CD.
My last post on this credit union was in October 2007 when it was offering a 5.50% 15-month CD.
Membership is open to those who participate in a Kentucy Retirement System. Also, families of members are eligible which includes uncles, aunts, nieces, nephews and cousins. Please see the how to join page for more details. Membership requires a minimum $5 deposit into the regular savings account.
Branches are located in Frankfort and Lexington, Kentucky. The credit union is federally insured by the NCUA (Charter # 61437). It has $778.1 million in assets and 95,430 members.
Thanks to the reader who mentioned this special CD in the finding the best deals post