Dedicated to Deposits: Deals, Data, and Discussion

CD Rates Fall at Melrose Credit Union But Remain Competitive - Available Nationwide - Update


Melrose Credit Union
Melrose Credit Union lowered the rates on all of its certificates today. However, the rates remain very competitive. All rates went down by 15 basis points except for the 4-year term which went down by 25 basis points. Below is a full list of the CD rates as shown in the credit union's rate table as of 11/25/2009:

CD Rates as of 11/25/2009:

Term Rate APY APY Change
1 year 2.05% 2.07% -0.15
2 year 2.30% 2.32% -0.15
3 year 2.80% 2.83% -0.15
4 year 3.05% 3.09% -0.25
5 year 3.60% 3.65% -0.15

Minimum deposit is $5,000 ($4,000 for an IRA). Dividends accrue daily and are compounded quarterly. Members have the option to have their quarterly dividend transferred to another share account.

There are some issues to note regarding the CDs' early withdrawal penalty and the account application process. Refer to my September Melrose CU review for more details.

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.

Melrose Credit Union's ratings for safety and soundness continue to be very strong: 5 stars (superior) and 5 stars (superior) at BauerFinancial. Both ratings are bassed on 6/30/09 financial data.

Melrose is located in Briarwood, New York which is in Queens. It's federally insured by the NCUA (Charter # 62005).

Thanks to the reader who noted this change in the comments.

Other High Certificate of Deposit Rates

  Tags: New York, Melrose Credit Union, CD rates, IRA rates

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Comment #1 by Anonymous posted on
Difficult to say with certainty because this CU refuses to post its terms on the net.  However, apparently the early withdrawal penalty on the five year CD is forfeit of 180 days of interest.

However, there is an added wrinkle.  They also lower to 1% the interest rate on the CD going forward . . . I think.  It's all very strange stuff.  The change of interest rate, if I understand correctly, would just force the member to withdraw as a practical matter all, or nothing.

They did offer to send me a copy of this policy by snail mail.  Of course, there is not the time for that.  Their refusal to post this on the net is silly . . . and not especially helpful.