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: