Velocity Credit Union just recently made a sizable increase in its 5-year CD rates. Its 5-year CD has a 2.63% APY, and its 5-year IRA CD has a 2.73% APY. For members who are at least 50, you can qualify for Elite Rewards which can boost these yields from 0.10% to 0.20%. Minimum deposit is $1,000. The shorter terms are not nearly as competitive. These rates are listed in the credit union's savings rates page as of 12/16/2010.
As a comparison to internet banks, the best 5-year CD rate is 2.55% APY at EverBank. Like Velocity, EverBank also recently increased its 5-year CD rate. Perhaps it's an early sign of a trend.
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Accounts having a term greater than one year, the penalty imposed will equal 180 days of dividends on the amount withdrawn.
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.
You might remember Velocity Credit Union from last year. It's the credit union that tried to switch from NCUA deposit insurance to the private ASI deposit insurance. Early this year, the credit union management changed their minds and decided to stay with the NCUA.
The credit union has an overall health score at DepositAccounts.com of 4 out of 5 with a Texas Ratio of 2.93% (excellent) based on September 2010 data. Please refer to our financial overview of Velocity Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 68359).
Searching for the Best CD Rates
To search for the best nationwide rates and the best rates in your state, please refer to the following tables at DepositAccounts.com: