3.14% 12-Month CD at Velocity Credit Union in Texas - Easy Membership

Velocity Credit Union is offering a special 12-month certificate with a 3.14% APY. Minimum deposit is $5,000. It's available as a regular or IRA certificate. The special is listed on the credit union's home page as of 2/20/09. According to this promo page, the special is scheduled to last through 2/28/2009.

Earlier this month, the credit union was offering a special 18-month CD.

There's an online application for membership and account opening via Andera, a common service used for account opening. In the application page that covers eligibility, the bottom of the page states "None of the above apply. I would like to join one of the following organizations." In the select box, Paramount Theater Assocation is the only one included. There's a $15 fee to join this association, and it appears to be open to all.

The problem with the previous 18-month CD special is that this term wasn't listed as an option in the online application. However, the 12-month term is selectable. The standard 12-month CD with a $1,000 minimum deposit has a lower rate so I'm not sure if a 12-month CD with a $5K minimum deposit will automatically receive the higher promotion rate. I suggest contacting the credit union to verify before trying to apply online.

For the previous promotion, I was told that a member can call and open the CD by phone. The CSR should be able to fund the CD by transferring the money from the member's Velocity savings or checking account. For someone new, that person should be able to apply for membership online and fund the savings account. Once the membership is complete and the savings account funded, the new member should be able to open the CD by phone.

In addition to Paramount Theater Association members, credit union membership is open to those who live or work in one of the following Texas counites: Travis, Williamson, Hays, Bastrop or Caldwell. Please refer to their Eligibility Page for the full details. Membership requires a minimum $5 deposit into the savings account.

Branches are located in Austin and Round Rock, Texas.

Velocity Credit Union has fair ratings for soundness: 3 stars (adequate) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/08 financial data. The credit union is federally insured by the NCUA (Charter # 68359).

Tags: CD rates, IRA rates, Texas, Velocity Credit Union