Dedicated to Deposits: Deals, Data, and Discussion

4.50% 7-Month CD at a California CU - Easy Membership/ASI-Insured Only (Christian Community)

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Christian Community Credit Union
Update 12/06/08: There's a new special 5% APY CD for terms of 24 to 60 months. Minimum deposit for this and the 4.50% APY CD is now $1,000. Refer to the credit union's promo page for more details.

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.
  Tags: California, Christian Community Credit Union, CD rates, savings account

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Comments
4 comments.
Comment #1 by Anonymous posted on
Anonymous
DIF is nothing more then a sham to entice people into false sense of security.

DIF will not pay anything to depositors if any of this is true:

The Bank files for bankruptcy.

There is any kind of fraud committed by the Bank or their employees.

The Bank is sold or assumed by other Bank.

There is FEC ongoing investigation for regulatory violations.

The Bank under reported liabilities and bad investments.

PODs accounts not set properly.

FDIC agrees to cover percentage of above of $100K per depositor.

The Bank assets are sold to cover any amount above $100K (could be few dollars only) and DIF is of the hook.

The above examples are a just a few of the exclusions included in the DIF agreements with the Banks.

My advice, do not count DIF to save your assets above FDIC $100K.

1
Comment #2 by Anonymous posted on
Anonymous
I assume God provides the insurance, anyway, right? And also the high rates? If God supposedly cares about who wins football games, I guess it's not a stretch to think that (s)he cares about deposit rates, too.

1
Comment #3 by Anonymous posted on
Anonymous
"Here's the ASI page for this credit union."

Fast-forward a few months... the "ASI page" link is now dead.

1
Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Thanks. Looks like ASI changed their website. I've updated the post with the new URL.

1