Update 9/06/08: The special CD has been extended to include terms from 7 to 18 months. The yield remains at 4.50% APY.
Update 8/16/08: The special CD yield has increased from 4.25% to 4.50% APY. The title has been modified to reflect this change.
Christian Community Credit Union has increased the yield on its 7-month new-member special certificate from 4% to 4.25% APY. The minimum deposit is $500, and the maximum is $100,000.
There's also a 4.00% APY special money market account with the 4% guaranteed for the first 6 months. Unfortunately, only the first $10,000 qualifies for the 4%. The minimum balance requirement is $1,000.
My last post on this new-member special was in May. When I called the credit union in May I was told that you can open this with your membership online and fund it electronically. The CSR said they don't limit the amount that can be electronically funded. However, I noticed the online application still states a $5,200 limit. When you select "continue" after selecting the accounts, a popup window states that there's a limit of $5,200 for funding the accounts from your existing checking or savings account.
Membership is open to those who affirm a personal Statement of Faith. Please see their Membership page for more details.
The credit union has offices in San Dimas and Covina, California.
The credit union only has private insurance via American Share Insurance (ASI). I have more discussion on ASI, in the April post. Christian Community Credit Union still has a 3-star rating (performing) at Bankrate.com based on 3/31/08 data.
Like NCUA, the ASI does provide access to each credit union's financial data. Here's the ASI page for this credit union.
Soundness of Private Deposit Insurance?
This old 1991 NY Times article does not discuss ASI, but another private credit union insurer that covered Rhode Island credit unions. There's an interesting quote that's relevant to the issue of ASI.
"The private insurance funds are well intentioned, but they are fundamentally flawed by inadequate capital and the lack of a sound reinsurance policy," said Bert Ely, a banking consultant and an expert on deposit insurance in Arlington, Va. "Anytime one of their large insured institutions fails, they have shown a lack of staying power."
Another private deposit insurance that some have questioned is the Depositors Insurance Fund (DIF). All Massachusetts-chartered savings banks have DIF, and it provides insurance on all deposits over the FDIC limits. A few online banks based in MA are now highlighting their DIF insurance, and readers have warned that depositors should not consider this as equivalent to FDIC insurance in its safety.
Edit 12/30/08: Updated credit union's ASI page URL.