Dedicated to Deposits: Deals, Data, and Discussion

Velocity Credit Union's 9-Month CD Special - Easy Membership

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Velocity Credit Union

Update 3/24/10: The promotion has been extended to 4/16/2010.

Velocity Credit Union is offering a new CD special with a 1.76% APY for a 9-month term. Minimum deposit is $5,000. It's available as a regular or IRA certificate (1-year term). The special is listed on the credit union's home page as of 3/02/2010. According to the promo page, the special is scheduled to last through 3/15/2010.

Last month Velocity's CD special was a 2.02% APY 15-month CD. The 1.76% APY may seem low even for a short-term CD, but I'm afraid it's very competitive for 9-month CDs. As a comparison, the best 9-month CD yield currently listed at Bankrate is 1.44% APY at Nexity Bank.

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 Association is the only one included. There's a $15 fee to join this association, and it appears to be open to all.

In addition to Paramount Theater Association members, credit union membership is open to those who live or work in one of the following Texas counties: 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.

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).

Velocity Will Retain NCUA Deposit Insurance

Members no longer have to worry about losing federal deposit insurance at Velocity Credit Union. The credit union was on the verge of switching from federal to private ASI deposit insurance. The management and the board were able to convince the members to vote for it in late December. Then the ASI instituted an assessment on its credit unions similar to what the NCUA had done. The cost savings was one of the main reasons for the switch. Even though this specific assessment wasn't going to affect Velocity, it was enough to make the board and management change their minds, and they decided to stay with NCUA deposit insurance. Refer to my last Velocity post for more details.


  Tags: Velocity Credit Union, Texas, CD rates, IRA rates

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Comments
2 Comments.
Comment #1 by Anonymous posted on
Anonymous
Under 2% and it's a "special" !   It is time to withdraw and keep it all in a shoebox  or stuff in a mattress.  SERIOUSLY - if we as savers quit letting these institutions use and abuse OUR money , we will never earn fair rates.    Think about it   -  we pull BILLIONS out of the banks and what do you think will happen.  They will HAVE to pay us to deposit it back in.   I would bet it would take less than 6 months before rates would be double what they are now.  How would they pay all those ceo's and vp's when we have the money buried in a coffee can in the backyard ?  I've got some still earning 4% for a while , but when it matures and the rates are under 2% -  I am asking for CASH and taking it home with me. 

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Comment #3 by Anonymous posted on
Anonymous
I agree. Bravo. We pay interest up our a**es and never get any in return, only fees. Its a business and its etrrible that every bank only exists to **** people over.  I am sick of trying to get ahead only to be overdrafted for no apparent reason. Its a gimmic and a scam.

1