Velocity Credit Union is offering a new CD special with a 2.07% APY for a 24-month term. Minimum deposit is $5,000. It's available as a regular and IRA certificate. The special is listed on the credit union's home page as of 4/25/2010. According to the promo page, the special is scheduled to last through 5/10/2010.
According to Velocity's account disclosure, the early withdrawal penalty is 180 days of interest:
For certificate Accounts having a term greater than one year, the penalty imposed will equal 180 days of dividends on the amount withdrawn.
Last month Velocity's CD special was a 1.76% APY 9-month CD.
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 (based on 12/31/09 data) and 3 stars (performing) at Bankrate.com (based on 9/30/09 data). The credit union is federally insured by the NCUA (Charter # 68359).
Velocity Will Retain NCUA Deposit Insurance
Please refer to my ASI/NCUA Velocity post for more details.
Searching for the Best CD Rates
The 2.07% APY is a competitive rate for a 2-year term, but it's not the best. You can find higher rates in the CD rates section of DepositAccounts.com. The tables now have a new & improved format!