MECU (Municipal Employees Credit Union) is offering several types of liquid CDs and IRA CDs with competitive rates. Some CDs have a have a bump-up feature that allows one or two bump-ups in the CD rate during the term. Others allow CD holders to make additional deposits, and one CD allows both additional deposits and penalty-free withdrawals.
Bump-Up Certificates of Deposit
The following Bump-Up CD rates are listed in the credit union's rates page as of 4/25/2010:
- 3.25% APY 60-month CD
- 2.85% APY 48-month CD
- 2.40% APY 36-month CD
- 2.25% APY 24-month CD
The 4-year and 5-year CDs allow two rate increases during the term. Minimum deposit is $500.
Add-On Certificates of Deposit
The following Add-On CD rates (credit union calls these Auto-Build CDs) are listed in the credit union's rates page as of 4/25/2010:
- 2.11% APY 24-month CD
- 1.75% APY 12-month CD
These rates require a minimum balance of $5,000. Minimum opening deposit is only $25, but the rate is lower. You'll receive the above rates once the balance reaches $5K.
SuperFlex Certificate of Deposit
This CD has the most flexibility, but the credit union only offers one CD of this type: an 11-month CD with a 1.55% APY as of 4/25/2010. Minimum deposit is $5K. There is no limits on deposits, but it only allows one penalty-free withdrawal, and at least $1,000 must remain in the CD after the withdrawal.
Early Withdrawal Penalties
If you don't have the SuperFlex CD, the early withdrawal penalty is an important issue for any long-term CD. According to this credit union FAQ
The amount of the early withdrawal penalty on CDs with terms of 18-months or less will be 90 days of interest. For CDs with terms of 19-months or greater, the early withdrawal penalty will be 180 days of interest.
Membership is open to those who live, work, worship or attend school in Baltimore, Maryland. You can also join MECU if you are a relative by blood or marriage to anyone who lives, regularly works, worships or attends school in Baltimore City or if you are a current or former employee of a company in their Select Employee Group. Please refer to the credit union's membership page for the full details.
Credit Union Overview
I reported on this credit union back in 2006 when they were offering a 7% 7-month CD special (the good old days).
Branches are located in several parts of Baltimore. The credit union is also part of the credit union shared branch network which allows you to do many banking transactions at a shared branch across the nation.
The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 12/31/09 data) and 4 stars (sound) at Bankrate.com (based on 9/30/09 data). The credit union is federally insured by the NCUA (Charter # 66787).
Credit for this find goes to mh83 who mentioned this credit union in this FW thread.
Liquid CDs and Finding the Best CD Rates
Please refer to my flexible CD review for more discussion on the advantages and disadvantages of liquid CDs.
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com. The tables now have a new & improved format!