Dedicated to Deposits: Deals, Data, and Discussion
DETAILSINSTITUTIONAPYMINMAXPRODUCT
Melrose Credit Union2.27%$5k-5 Year Share Certificate
Melrose Credit Union2.02%$5k-4 Year Share Certificate
Melrose Credit Union1.66%$5k-3 Year Share Certificate
Melrose Credit Union1.41%$5k-2 Year Share Certificate
Melrose Credit Union1.15%$5k-1 Year Share Certificate
Accounts mentioned in this post. Rates as of April 24, 2014

CD Rate Increase at Melrose Credit Union - Now a Decrease!

POSTED ON BY

Melrose Credit Union

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).

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

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Comments
7 comments.
Comment #1 by tommy (anonymous) posted on
tommy
it says no membership restrictions,  is this for the people live new york state only.. what about if you live in florida?

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Comment #2 by Anonymous posted on
Anonymous
I called Melrose and they confirmed 3.80%.  I then requested an application and it states 3.55% APY.  I checked the web site and it now says 3.55%.  In conclusion, it appears the 3.80% they posted earlier was a mistake.  The 5 year rate was actually lowered to 3.55%.

David Terry

 

1
Comment #3 by KJ (anonymous) posted on
KJ
Membership is open - but the application process is very onerous.  I rent an apartment that includes utilities so I don't have a utility bill with a street address.  I provided copies of my voter registration, my DL, my passport, and a letter from my landlord.  And they still rejected me.  So I took my business to Pentagon Federal - they were happy to see my 25K! 

1
Comment #4 by Shorebreak (anonymous) posted on
Shorebreak
Must have been a CD special for only a few hours. It's back to 3.55%.

1
Comment #5 by Anonymous posted on
Anonymous
KJ: I also ran into an interesting roadblock when I tried to join with my husband over a year ago. They wanted me to send a copy of our MARRIAGE CERTIFICATE (we have different names)!! We've been married for over 30 years, and I've NEVER had to produce it. I was so insulted, I withdrew my application and, like you, took my money elsewhere.

1
Comment #6 by Anonymous posted on
Anonymous
CAUTION:

Be sure to take a close look at the Melrose Credit Union Disclosures

PENALTIES FOR EARLY REDEMPTION ARE: 9-12 Months term: Forfeiture of the first 90 days Dividend and a Reduction of Rate to 1.00%

18-60 Months term: Forfeiture of the first 180 days Dividend and a Reduction of Rate to 1.00% Penalty waived upon the Death of any Owner. Penalty Reduction Rate/APY is subject to change.

1
Comment #7 by Jim (anonymous) posted on
Jim
When you talk to these people on the phone their New York attitudes come jumping right thru the phone at you.  They are definitely the biggest sticklers for their rules of any institution I've dealt with.

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