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# Survey of Special High-Yield Low-Cap Credit Union CDs

POSTED ON BY Ken Tumin

Several credit unions have been offering special CDs with very high yields but with low maximum deposits. These are often new-member specials or youth CDs. Instead of having multiple posts on all of these, I thought I would just have this one post. If you've seen others that I've missed, please leave a comment.

To measure the value of one of these CDs, I compare it against an online savings account. For today's rate environment, I'll use 3.75% APY as a respectable yield. I then compute how much extra someone would earn in one of these CDs compared to the savings account. Here's an example.

Assume a 6% special 3-mo CD with a maximum deposit of \$1,000. Here's how I compute its value:
`Interest rate advantage = 0.06 - 0.0375                        = 0.0225Extra earnings for 1yr  = \$1,000 * 0.0225                        = \$22.5Extra earning for thespecific CD term        = (3mo/12mo) * \$22.5                        = \$5.63`

In the above example, you'll only earn \$5.63 over what you would have earned if you had just kept the money in a 3.75% account for those 3 months. As you can see with a low maximum deposit and a short term, this kind of special CD could be more trouble than it's worth. With this in mind, below is a list of some promotional stimulus CDs that I've been able to find. All yields are based on APY. The extra amount is based on what I described above. If you've seen others, please leave a comment.

Thanks to the readers who emailed me info on some of these special CDs.
Tags: CD rates