Velocity Credit Union continues to offer very competitive long-term CD and IRA CD rates. The two best CDs are a 5-year CD with a 2.62% APY and a 3-year CD with a 1.91% APY. Minimum deposit is $1,000. These rates are listed in the credit union's savings rates page as of 9/15/2011.
For members who are at least 50, you can qualify for Elite Rewards which can boost these yields from 0.10% to 0.20%.
One nice feature of Velocity CDs is a reasonable early withdrawal penalty. 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Accounts having a term greater than one year, the penalty imposed will equal 180 days of dividends on the amount withdrawn.
Velocity Credit Union's online application provides an easy way for anyone to join. On Velocity's Switch Kit page, select the "Join Now" button, and the andera.com online application will pop up. Andera is a common service used by many financial institutions for online 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. This association is also listed in the credit union's members companies page.
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.
Velocity Credit Union Overview
Velocity Credit Union branches are located in Austin and Round Rock, Texas.
You might remember Velocity Credit Union from 2009. It's the credit union that tried to switch from NCUA deposit insurance to the private ASI deposit insurance. Early in 2010, 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 5 stars (out of 5) with a Texas Ratio of 1.94% (excellent) based on June 2011 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).
How These Rates Compare
Velocity CU's 3-year CD APY is the same as the 3-year CD APY at Melrose Credit Union. This 1.91% APY is currently the best 3-year CD APY that's available nationwide. For a 5-year CD, the highest APY is 2.68% at Melrose Credit Union. These rates are accurate as of 9/15/2011.
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: