Melrose Credit Union cut its CD rates on Tuesday by 10 basis points. The CD rates remain competitive, but they are no longer on top of the list for the best nationally available CD rates. The 5-year CD yield dropped below 3.00%. It's now 2.93% APY. The only nationwide 5-year CD with at least a 3.00% APY is at Connexus Credit Union as of 12/01/2010. However, Connexus requires an active checking account for this rate. For internet banks, the best 5-year CD rate is 2.60% APY at Acacia Federal Savings Bank as of 12/01/2010.
Below is a full list of the CD and IRA CD rates as shown in Melrose Credit Union's rate table as of 12/01/2010:
- 2.93% APY 5-year CD
- 2.42% APY 4-year CD
- 2.17% APY 3-year CD
- 1.66% APY 2-year CD
- 1.41% APY 1-year CD
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. Melrose also offers Jumbo CD rates that are 25 basis points higher. However, it's a very large Jumbo CD that requires a minimum deposit of $1 million. Details are listed in the credit union's Jumbo certificates page. One downside of Melrose Credit Union is a harsh and confusing early withdrawal penalty. For more details about Melrose Credit Union CDs and early withdrawal penalties, please refer to my November post.
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.
Even though Melrose makes it easy to qualify, they don't make it easy to apply. Several readers have commented about problems they had in the application. Here's what one reader experienced:
Membership is open - but the application process is very onerous. I rent an apartment that includes utilities so I don't have a utility bill with a street address. I provided copies of my voter registration, my DL, my passport, and a letter from my landlord. And they still rejected me.
Melrose Credit Union has an overall health score at DepositAccounts.com of 5 out of 5 with a Texas Ratio 1.53% (excellent) based on September 2010 data. It's a sizable credit union with $1.35 billion in assets. Please refer to our financial overview of Melrose Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 62005).
Thanks to reader dave9354 who mentioned these rate changes in the discussion forum.
Searching for the Best CD and IRA CD Rates
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