15-Month CD Special at Velocity Credit Union - Easy Membership But Soon To Be ASI-Only
Update 2/10/2010: The CD special has been extended. It's now scheduled to last through 2/28/2010.
Update 2/10/2010: Velocity has changed its mind and decided NOT to switch to ASI (see news).
Velocity Credit Union is offering a special 15-month certificate with a 2.02% 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 2/1/10. According to this promo page, the special is scheduled to last through 2/07/2010.
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 only problem with this online application is that it doesn't include the 15-month CD special as an option. Last year I called about this regarding a similar CD special, and according to the CSR, 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.
May Soon Be Dropping NCUA Deposit Insurance
Velocity Credit Union is in the process of switching its deposit insurance from NCUA to private ASI. I reviewed this issue in my Velocity/ASI post last September. The credit union reported in early January that they received enough member votes to make this switch. The results must still be officially tabulated and approved by the NCUA, and I don't see any indication that this has been done yet. Nevertheless, it seems likely that Velocity will soon be depending entirely on the private ASI for its deposit insurance. I wonder how many deposits have been withdrawn because of this. Perhaps this is a reason for this CD special (although they did have a similar special last year).
The credit union's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/09 financial data. The credit union is currently federally insured by the NCUA (Charter # 68359).
Banks Mentioned in this Post:
|Velocity Credit Union|
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