Dedicated to Deposits: Deals, Data, and Discussion

Very Competitive CD Rates at Credit Union 1 in IL & IN - ASI-Insured Only

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Credit Union 1
Update: The rates have fallen. Please check the credit union's website for the latest rates.

Credit Union 1 has several competitive certificate rates. These include a 2.65% APY 6-month CD and a 2.80% APY 12-month CD. Below is a full list of the CD rates for a minimum deposit of $10,000. IRA rates are 20 basis points higher except for the 60-month term which has a 70-basis-point premium. These rates are listed at the credit union rate table as of 4/08/09:

TERM CD APY CD IRA APY
6 months 2.65% 2.85%
12 months 2.80% 3.00%
18 months 2.95% 3.15%
24 months 3.10% 3.30%
30 months 3.25% 3.45%
36 months 3.40% 3.60%
48 months 3.60% 3.80%
60 months 3.80% 4.50%

According to the CSR, these rates were just updated this morning, and are typically updated every Wednesday.

The credit union is not too open with qualifications for becoming a member. In the credit union's membership page, it only states that:
To be eligible for membership in the credit union, you must be an individual or entity qualifying within our field of membership.

I wasn't able to get too many more details when I called. According to the CSR, you must pass a credit check and a Telecheck inquiry (which appears similar to ChexSystem). They can mail you an application, but it sounds like your best bet is to apply at one of their branches. A reader who emailed me info on this credit union said when he applied at a branch, membership seemed to be open to all.

Branches are located in Indianapolis, Chicago and in several other Illinois cities.

Not federally insured: It's important to note that Credit Union 1 only has private insurance via American Share Insurance. This is the same insurance that Christian Community Credit Union has (see post). It is NOT federally insured by the NCUA. Nevertheless, it's a legitimate credit union with an Illinois state charter. I tend not to post on many ASI-only credit unions, but when there's a good deal, I feel it's better to state all the facts and let readers decide if it's worth the risk.

You can review Credit Union 1's financial information at this ASI page. Since they're not NCUA-insured, they're not rated at BauerFinancial. However, Bankrate gives the credit union a rating for safety and soundness of 4 stars (sound) based on 9/30/08 financial data.

Thanks to the reader who emailed me info on this credit union.

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.

  Tags: Indiana, Illinois, Credit Union 1, CD rates, IRA rates

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Comments
4 Comments.
Comment #1 by Anonymous posted on
Anonymous
I live in Chicago and have used Credit Union 1 to make deposits for accounts at out-of-state credit unions. When I inquired about eligibility, "Anyone" was the answer I got. From further conversation, I took that to mean any walk-in prospective customer who could present themselves with proper ID, much like a retail bank. Don't know how receptive they'd be to mail-in applicants.

I think, in this environment, they have to offer a premium for the lack of government insurance. I've not been tempted for this reason. Locally, I can easily get 2.70%/2.75% APY for 12 months. With all the news of bank failures and undercapitalized private insurers (e.g., AIG), that extra .25% is hardly worth the risk, in my opinion.

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Comment #2 by Anonymous posted on
Anonymous
Correction: Extra .05 to .10%. Even less enticing. I incorrectly compared Credit Union 1's higher IRA rates to local CD rates.

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Comment #3 by Anonymous posted on
Anonymous
i called credit union 1 & they offer a a cd for 1yr at 1.95, not what is posted here.

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Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Please note that the rates were based on what was listed at the credit union on 4/08/09.

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