Montauk Credit Union continues to offer competitive rates on its CDs and IRA CDs. The rates have gone down for the shorter terms since my December 2009 post, but the rates have held on the longer terms and remain very competitive. Below is the full list of rates as listed at the credit union's rate table as of 4/05/2010:
- 1.60% 12-month
- 1.85% 18-month
- 2.50% 24-month
- 3.00% 36-month
- 3.25% 48-month
- 3.75% 60-month
- 4.25% 84-month
Note, they only do simple interest, so there's no compounding. A reader reported that they'll deposit the interest in your credit union savings account every quarter. You can also request for them to send you a check.
Last year a reader informed me about the early withdrawal penalty. Unfortunately, it's harsh. For those familiar with Melrose Credit Union, it's very similar. For terms over one year, it's 180 days of interest PLUS the interest rate drops for your entire CD term to whatever the interest rate is in the savings account for that day. The current savings account rates are 0.75% for $5K to $50K and 1.00% for $50K and above.
According to the credit union's About page, anyone is eligible to join:
MCU has an "open charter" which enables us to extend membership to anyone.
A reader reported that she had to go into the branch to join. According to the reader, the office is in a teeny "storefront" on west 26th Street just off 6th Avenue. The process of opening a CD appears to be a little odd. Here's how the reader described it:
I had to send them a letter telling them I wanted to open a CD, and then someone called me to give me the "go-ahead". I put the check in the mail today.
Update 4/6/10: The reader provided an update based on the opening of new Montauk CDs. She can now open the CDs by phone. According to the reader:
I tell her the term I want, and then I send a check (they won't pull funds from another institution.). But the rate will hold as of the phone conversation. That's it. A few days after I send the check, I receive the actual paper certificate in the mail. And the CD shows up online as well.
She also provided an update on the interest she receives from last year's CD:
the quarterly interest has been posted with no glitches in the share savings account, like clockwork at the end of the quarter. I then ACH it to my "home" bank
The credit union's rating for safety and soundness has gone down a bit at Bankrate.com. It's now 3 stars (performing) based on 9/30/09 data. In December it had been 4 stars based on 6/30/09 data. It continues to have the top rating of 5 stars at BauerFinancial based on 12/31/09 data. The credit union is federally insured by the NCUA (Certificate # 63231).