Update 4/09/10: CD Rates have fallen substantially.
Updated 1:00PM: It appears Melrose made a mistake. The 5-year CD rate is now listed as 3.55% APY which is 10 basis points lower than it has been. It wasn't just a typo mistake since both the rate and APY had been increased. I guess we'll have to be suspicious of any rate hikes these days.
Melrose Credit Union did something that's rare these days. It raised one of its CD rates. The 5-year CD yield increased from 3.65% to 3.80% APY. The 3.80% APY is an especially competitive 5-year rate. As a comparison, the best 5-year nationwide CD rate listed at Bankrate is 3.33% APY at EverBank. The 3.80% APY is shown at the Melrose's deposit rates page as of the morning of 3/24/2010. The other certificate rates remained the same, and they haven't changed since November. Below is a full list of the CD rates as shown in the credit union's rate table as of 3/24/2010:
CD Rates as of 3/24/2010:
Term Rate APY APY Change
1 year 2.05% 2.07%
2 year 2.30% 2.32%
3 year 2.80% 2.83%
4 year 3.05% 3.09%
5 year 3.75% 3.80% +0.15
5 year 3.50% 3.55% -0.10
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. The early withdrawal penalty is more harsh than the usual CD which is an especially important issue to consider with long-term CDs. Refer to my September 2009 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: 4 stars (sound) Bankrate.com (based on 9/30/09 data) and 5 stars (superior) at BauerFinancial ( based on 12/31/09 data).
Melrose is located in Briarwood, New York which is in Queens. It's federally insured by the NCUA (Charter # 62005).