Dedicated to Deposits: Deals, Data, and Discussion

5.00% 60-Month CD at Melrose Credit Union - Easy Membership


Melrose Credit Union
Melrose Credit Union has recently increased its share certificate rates. The shorter terms rates are still a little low compared to the best bank rates. However, the longer term ones are more competitive. There's now a 5-year CD with a yield of 5.00% APY. The minimum deposit is $5,000, and these are also available in an IRA (minimum IRA deposit is $4,000). Below is a full list of the CD rates:

CD Rates as of 8/02/2008:

Term Rate APY
1 year 3.75% 3.80%
2 year 4.00% 4.06%
3 year 4.25% 4.32%
4 year 4.50% 4.58%
5 year 4.91% 5.00%

Melrose also has Jumbo Share Certificates, but these should be called Super Jumbo since it has a minimum of $1 million. The Jumbo rates are 25 basis points higher than the regular share rates.

Rate History

It's nice to see Melrose being competitive with their CD rates once again. They do have a history of competitive rates. Last year they were offering a 5.56% 12-month CD and in July 2006 the 5-year CD rate was 5.82% APY.

Share Certificate Details

Some details about these certificates are available from the credit union's Terms and Conditions disclosure (pdf):
  • Early withdrawal penalty for terms of over one year appears to typically be 180 days of interest
  • 10-day grace period following the maturity of the CD where you may withdraw funds without being charged an early withdrawal penalty
  • CD automatically renews at maturity. You may prevent renewal if the credit union receives written notice from you before maturity not to renew or you withdraw the funds at maturity or during the grace period.
  • If you stop the renewal, your funds will be placed in a dividend-bearing account
  • Certificate dividends are compounded every quarter and credited to your account every quarter. As an alternative, you can have your Certificate dividends paid to your Share Account every quarter.
I would think you should be able to close the CD and have the funds transferred to the share savings account. From here you should be able to withdraw the money by initiating an ACH transfer from an online bank account. You may want to verify that they allow ACH debits from the share savings accounts. Navy FCU is one example of a credit union which does not allow ACH debits from its share savings account.

Share Savings Account

Another nice aspect of Melrose is that it has a decent yield on its Basic Share Savings Account. The current yield is a little low at 2.52% APY, but it's still not bad compared to most other credit unions and brick-and-mortar banks. Last year the rate had been 4.06% APY for much of 2007. The minimum balance is $25. One downside of this account is that dividends are paid quarterly. The same rate is also available in an IRA share account.


Anyone can join the credit union. According to Melrose's membership page:
Since Melrose Credit Union has an open New York State charter there are no geographic or group affiliation field of membership restrictions. So, regardless of where you live or how you earn a living, you may qualify for membership.

Membership requires a one-time fee of $1 ($2 for joint accounts) and a minimum $25 deposit into your share savings account. You can apply online for membership, but you have to fund your account by mailing a check or a money order. In addition, you must print, sign and mail the membership application and include a copy of your photo ID and proof of address with the application.

Financial Health and NCUA Status

For those who are looking for sound financial institutions, Melrose CU may be one according to the rating services: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Both are based on 3/31/08 data.

Melrose is located in Briarwood, New York which is in Queens.

Melrose Credit Union is federally insured by the NCUA (Charter # 62005). It has $912 million in assets and 19,200 members.

Thanks to the reader who emailed be news of the rate increases.

  Tags: New York, Melrose Credit Union, CD rates, IRA rates

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Comment #1 by Anonymous posted on
My husband and I tried to join Melrose earlier this year, and after we sent all the required ID forms, paying the required fees, etc, they told us to send our marriage certificate! (We have different names). We've been married for 32 years and never had to produce this. At that point, I told them to forget it and refund my money, which they did! Too many hoops to jump through.

Comment #2 by Anonymous posted on
Did anyone ever notice that Melrose, with over $1 Billion in assets has a relatively small accounting firm that audits it?