5.05% 59-Month / 4.00% 16-Month CD at Consumers Credit Union in IL - Easy Membership
Update 4/04/09: The CD rates have fallen, but these special CDs remain very competitive. Please refer to the credit union's website for the latest rates.
Consumers Credit Union is offering competitive rates on some of its certificate promotions: 5.05% APY 59-month, 4.25% APY 22-month and 4.00% APY 16-month. The minimum deposit is $250. Jumbo certificates with a minimum deposit of $100,000 receive an extra 25 basis points. So the 59-month Jumbo certificate yield is 5.30% APY. These are also available as IRA certificates.
One nice feature of these certificates is that the early withdrawal penalty is a little bit lower than average. The penalty is 120 days of interest for terms of more than 1 year. Most banks and credit unions have a penalty of at least 180 days of interest for terms over 1 year. Certificate rates and details are listed in the credit union's rate sheet (pdf).
The credit union also offers a reward checking account that currently pays 5.09% APY on balances up to $25,000 (see post).
You can become eligible for credit union membership by joining Consumers Cooperative Association. This can be done by paying a one-time $5 fee. Also required for membership is a minimum $5 balance in the share savings account. Please refer to the credit union's How to Join Page for details.
There's an online application that's provided by Andera. It appears to allow you apply for both the association membership and the credit union membership at the same time. You can also select the accounts that you want to open and fund the accounts with an ACH transfer from a checking or savings account. When you select the accounts, a pop-up states that the maximum amount that you can fund an account using a checking or savings account is $205,000. One little odd glitch is that the application would not allow me to select the 59-month CD. A pop-up would say that I had selected too many shares of this type. Selecting other accounts didn't cause this. For the official details about account opening, please contact the credit union.
Branches are located in the Illinois cities of Waukegan, Mundelein, Round Lake Beach, Gurnee and Volo.
The credit union just recently switched from private-only deposit insurance (via ASI) to federal deposit insurance through NCUA. So deposits at this credit union are now federally insured by the NCUA (Charter # 68588). Its rating for financial soundness is 3 stars (performing) at Bankrate.com. This is based on 6/30/08 data.