Melrose Credit Union lowered the rates on its 1-, 2- and 3-year certificates yesterday. Even with these cuts, the rates remain competitive. Below is a full list of the CD rates as listed in the credit union's rate table as of 6/12/2009:
CD Rates as of 6/25/2009:
Term Rate APY APY Change
1 year 2.50% 2.52% -0.51
2 year 2.80% 2.83% -0.36
3 year 3.00% 3.03% -0.31
4 year 3.45% 3.49%
5 year 3.85% 3.91%
You can see how great a deal the 1-year certificate had been when it's still a good deal after a half-a-percent rate cut. Unfortunately, 2.52% APY is a good deal compared to what other banks and credit unions are offering.
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." Several readers have reported that Melrose is slow in opening accounts by mail. You have to mail in signed forms even if you use their online application.
Several readers have described their experience opening accounts at Melrose in the comments of my last Melrose post. One way to expedite the CD application process is to first become a member with a $1 fee and a $25 deposit in the share savings account. Once you're a member, you can then fund a CD using money in the share savings account. A reader commented about using a local credit union that belongs to the CU Service Centers to make a deposit into his Melrose savings account. Then, he faxed in the completed and signed CD application. The CD was funded the same day from the money in the share savings account. I would think you can also deposit money in the share savings account by initiating an ACH transfer using an online bank such as Ally Bank. I've done this at other credit unions.
For more details about Melrose CDs and the application process, please refer to my previous Melrose post and the comments at the bottom of that post.
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 (based on 3/31/09 data) and 4 stars (sound) at Bankrate.com (based on 12/31/08 data).
Melrose is located in Briarwood, New York which is in Queens. It's federally insured by the NCUA (Charter # 62005).
Top Certificate of Deposit Rates