Melrose Credit Union slashed its certificate of deposit rates on all terms by 55 basis points. Melrose had long been a CD rate leader for accounts available nationwide. Its previous rates had held mostly unchanged since November 2009 while rates at most other institutions have fallen. Even after this rate cut, Melrose's CD rates remain competitive compared to what's available at other institutions. They are just not hot deals any more.
Below is a full list of the CD rates as shown in the credit union's rate table as of the morning of 4/09/2010:
CD Rates as of 4/09/2010:
Term Old APY New APY APY Change
1 year 2.07% 1.51% -0.56
2 year 2.32% 1.76% -0.56
3 year 2.83% 2.27% -0.56
4 year 3.09% 2.52% -0.57
5 year 3.55% 3.03% -0.52
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
Finding the Best CD Rates
To find the best CD rates in your state or the best CD rates that are available nationwide, please refer to the CD rates section of DepositAccounts.com (with New & improved format!).