Premier Community Credit Union is offering an IRA CD promotion with two very competitive CD rates: 2.00% APY 2-years and 3.00% APY 3-years. These rates are listed in the credit union's promotions page as of 4/12/2011. This is a limited time offer.
Premier continues to offer a 3.00% APY 5-year CD and IRA CD. Minimum deposit is $1,000, and the early withdrawal penalty is 6 months of interest on the amount withdrawn (or all interest if withdrawal is before 6 months). The rate is listed in the credit union's rates sheet as of 4/12/2011. The early withdrawal penalty is listed in the credit union's account disclosure.
Credit Union's Flexible Certificates of Deposit
The credit union also offers several different flexible CDs. These can come in handy if interest rates rise or if you need the money before maturity. However, the trade-off for this flexibility is a lower interest rate. One of the flexible CDs is a Bump-Up Certificate. According to the credit union's CD overview it allows you to bump-up the rate once before maturity. The other flexible CD is the Liquid CD. It allows one withdrawal per 12 month period without a penalty. This might sound like the perfect CD, however, the overview left out one important detail. According to the disclosure, "you are allowed one withdrawal not to exceed 50% of the original balance with a minimum of $1,000 in the account on a rolling 12 month basis." The third flexible CD is an Add-On CD. This allows additional deposits, but the maximum balance is only $10,000 per member.
As of 4/12/2011, the 5-year Bump-Up and Liquid 5-year CD rate is 2.50% APY which is 50 bps under the regular 5-year CD. The bump-up feature useful is always questionable since it depends on the institution raising the CD rate in the future. Interest rates may rise, but the credit union could decide to keep this CD rate the same. If that happens, you won't benefit from the bump-up feature. The benefit of the liquid CD is also questionable since the withdrawals are capped at 50% of the original balance. The 5-year Add-On CD has the same competitive rate as the regular 5-year CD of 3.00% APY. However, with a $10K maximum balance, this won't give you much benefit over the regular CD.
Membership is open to those who live or work in San Joaquin County, California. There are also a few other ways that people can qualify for membership through associations and colleges. Please refer to the credit union's About Us page for more details.
Credit Union Overview
Premier Community Credit Union branches are located in Stockton, Lodi and Manteca, California.
The credit union has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 10.03% (excellent) based on December 2010 data. Please refer to the financial overview of Premier Community Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 64515).
Searching for the Best California CD Rates
There's another good CD deal in California, and unlike Premier, it's available to more areas of the state. State Bank of India (California) is offering a 2.75% APY 5-year CD and a 1.50% APY special 15-month CD as of 4/12/2011. I first reviewed this California CD rate deal in March.
Searching for the Best CD Rates
For CDs available nationwide, the best 5-year CD rate continues to be 3.00% APY at Connexus Credit Union, but this requires an active checking account. Without the checking requirement, the best rate is 2.93% APY at Melrose Credit Union. As I described in my last review of this offer, Melrose has a harsh early withdrawal penalty.
If you're looking for flexible CDs, Ally Bank is one of the few internet banks that offer some decent deals. Its 11-month No Penalty CD allows you to withdraw all of the funds during the term without a penalty. The rate isn't the best at 1.15% APY as of 4/12/2011, but the no-penalty feature makes it better than most all short-term CDs. Ally also offers a 2-year bump-up CD called the Raise Your Rate CD. Like Premier, it just allows one bump-up during the term. The rate is 1.49% APY as of 4/12/2011. The best CD deal at Ally is actually its 5-year CD (2.40% APY) since its early withdrawal penalty is only 60 days of interest. I have more info on these CDs in my Ally Bank CD review.
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.