Update 2/12/09: The CD rates have fallen. New rates range from 3.39% APY for 1-year to 4.27% APY for 5 years.
Melrose Credit Union continues to offer several competitive certificate rates including a 3.65% APY 1-year CD and a 3.80% APY 2-year CD. Minimum deposit is $5,000 ($4,000 for IRA certificates). Below is a full list of the CD rates as listed in the credit union's rate table as of 2/08/2009:
CD Rates as of 2/08/2009:
Term Rate APY
1 year 3.60% 3.65%
2 year 3.75% 3.80%
3 year 3.90% 3.96%
4 year 4.05% 4.11%
5 year 4.35% 4.42%
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.
At the top of the rate table, it states that "your certificate will be the rate that is in effect the day your completed paperwork and funds are received." With the potential of the rates falling at any time, this could be an issue.
One thing that has been added since my last Melrose post is an online application which allows ACH funding. However, it appears you still have to mail in a copy of your IDs.
At the bottom of the first page of the online application, there's a link to the disclosure which provides details of the CDs. The early withdrawal penalty as described in the disclosure is confusing. The penalty appears to be 90 days of interest for the 1-year term and 180 days for the longer terms. In addition, if you don't withdraw all of the money, the CD interest rate is reduced for the entire life to the share savings rate.
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.
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 Bankrate.com. Both are based on 9/30/08 data.
Melrose is located in Briarwood, New York which is in Queens.
Melrose Credit Union is federally insured by the NCUA (Charter # 62005).