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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

Featured 2-Year CD Rates

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Featured Accounts
DETAILSINSTITUTIONAPYMINMAXPRODUCT
Melrose Credit Union2.27%$5k-5 Year Share Certificate
Melrose Credit Union2.02%$5k-4 Year Share Certificate
Melrose Credit Union1.66%$5k-3 Year Share Certificate
Melrose Credit Union1.41%$5k-2 Year Share Certificate
Melrose Credit Union1.15%$5k-1 Year Share Certificate
Accounts mentioned in this post. Rates as of August 22, 2014

CD Rate Increases at Melrose Credit Union

POSTED ON BY

Melrose Credit Union

In less than 3 weeks after it cut all CD rates by 25 basis points, Melrose Credit Union has gone against the latest trends and raised all of its CD rates by 10 basis points. With this change and with rate cuts at other credit unions, Melrose is now back as a rate leader on several CD terms. Below are the new Melrose Credit Union CD and IRA CD rates, and for comparison purposes, I've included the next best nationally available CD rates from other all-access credit unions.

APY's from the institutions' websites as of morning of 9/1/2011

 

CD Term Melrose CU's APY CU Offering Best CD CU's APY
1 Year 1.15% Alliant Credit Union 1.30%
2 Year 1.41% Alliant Credit Union 1.70%
3 Year 1.91% Velocity Credit Union 1.91%
4 Year 2.17% Alliant Credit Union 2.45%
5 Year 2.68% Velocity Credit Union 2.62%

Those with very large balances can earn an extra 25 basis points on the above CD rates. The required minimum balance is $1 million. Please refer to Melrose Jumbo CD page for more details. Note, with beneficiaries and joint accounts, it's possible to federally insure $1 million in deposits. Please refer to my post Maximizing Your FDIC Coverage with Beneficiaries.

Keep in mind the one downside of Melrose Credit Union which is a harsh and confusing early withdrawal penalty. Here's the listed early withdrawal penalty for CD terms over 1-year:

18-60 Months term: Forfeiture of the first 180 days Dividend and a Reduction to the Share Savings Rate at the time of purchase.

The PDF of this disclosure is available here. Please make sure to request the latest disclosure from Melrose before you open a CD.

Melrose Credit Union Membership

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. Please refer to my November Melrose Credit Union CD review for more of these details.

Melrose Credit Union has one office located in Briarwood, New York which is in Queens.

Melrose Credit Union's Financials

The credit union continues to have solid financials. Its overall health score at DepositAccounts.com is still 5 stars (out of 5) with a Texas Ratio 0.49% (excellent) based on March 2011 data. Please refer to our financial overview of Melrose Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 62005).

Searching for the Best CD and IRA CD Rates

To search for the best nationwide rates and the best rates in your state, please refer to the following sections of DepositAccounts.com:


  Tags: New York, Melrose Credit Union, CD rates, IRA rates

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Comments
10 Comments.


Comment #2 by Buddtaoist posted on
Buddtaoist
But still the rate did not rebound to 3% APY (5 years) when I opened two accounts last summer. 

1
Comment #3 by Dan (anonymous) posted on
Dan
http://www.alliantcreditunion.org/services/rates/

I'd just like to point out APY rates of Alliant CU Share Certificates for amounts of $25,000 and up:

12-17 Months = 1.30% APY

18-23 Months = 1.55% APY

24-35 Months = 1.70% APY

36-47 Months = 1.90% APY

48-60 Months= 2.45% APY

 

1
Comment #4 by what good is a rate leader (anonymous) posted on
what good is a rate leader
if it is virtaully impossibe  to open account unless you give in essence a pint of blood and your first born  i never encountered a  financial institution that has so many hoops one must jump through 3 times over

2
Comment #5 by Anonymous posted on
Anonymous
You don't have to apply in person for a passport at the post office so why do all the banks insist that you apply in person to give your money in return for such miniscule interest?

 

2
Comment #6 by Anonymous posted on
Anonymous
melrose came to its sense to late IT ACTED LIKE A BANK IN ITS LAST RATE DECREASE<THEY HAVE LOST MY BUSINESS BECAUSE OF IT A CREDIT WORKS FOR ITS MEMBERS AND FOR NO OTHER REASON THEY HAHE LOST THEIR WAY AND NEED MGT CHANGE

1
Comment #7 by Anonymous posted on
Anonymous
#6

Please take some time to read and think about your post. You are obviously bitter but, even so, and at the very least, you might try to be a bit more coherent in stating your complaints? If you have any worthwhile suggestions, tips, or relavent facts in general, please feel free to share....we need all the constructive help that we can get.

5
Comment #21 by Anonymous posted on
Anonymous
Personally I loved the rate increase at Melrose and jumped into the 5 year CD with both feet. Their price was the best around that someone could buy into ~ I am pleased. Plus that interest check being mailed out is a nice benefit. Consider Melrose if you have any money to tie up this one seems like a winner!

1
Comment #23 by Anonymous posted on
Anonymous
#21  I just got off the phone with Melrose CU.  Did you know they give themselves the right to change the interest rate on the CD at any time after you purchase it?  That is not a winner to me.  I put in a call to them to ask about the EWP also.  I like the 5 yr CD rate but I am very concerned about what I may be buying into for that rate.  The rep on the phone found the info on the EWP  but could not understand it herself or how to explain it to me.

1
Comment #22 by Anonymous posted on
Anonymous
Can someone explain to me what "a reduction to the share savings rate at time of purchase" means in the Melrose CU early withdrawal penalties?  Does this impact the interest rate you get at time of purchase?   I have never read this in an EWP disclosure.  Thanks for any info.

1
Comment #24 by Anonymous posted on
Anonymous
Opened an account at Melrose for the 60mo cd rate 2.65%.

The catch is the previously mentioned early withdrawal penalty which is quite stiff & unusual.

Not only do you have to pay 180 days worth of interest on principal, but you will be required to recalculate all of the interest earned to date at some marginal rate (.65% or something), and give back the difference!!!

This is the weirdest thing I've ever seen, and makes early withdrawal in this particular case prohibitive.

So take out the 60mo cd for the highest rate around, but don't expect to cash out early.

1