As I mentioned on Monday, you might be able to qualify for membership in a credit union even if the credit union's name suggests a limited membership. That's the case with Health One Credit Union which offers a very competitive 1-year CD. It has a 1.20% APY for a minimum deposit of $10,000. This rate is listed at the credit union's rates page as of 10/26/2011.
Health One also offers a free checking account with no monthly service fees or minimum balance requirements.
It may sound like Health One Credit Union would be limited to those employed in the health care field. In 2009, the credit union received permission from the Michigan financial regulators to expand its field of membership to be community based in addition to employer based. It's now open to those who live, work, worship, volunteer or attend school in the Michigan counties of Macomb, Oakland, Washtenaw or Wayne. Please refer to the credit union's field of membership page for the full details.
Health One Credit Union branches are located in Detroit and Southfield, Michigan and in Cleveland, Ohio.
The credit union has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 27.95% (average) based on June 2011 data. Please refer to our financial overview of Health One Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 63106).
How This CD Rate Compares
You might find it hard to believe that a 1.20% APY is competitive for a 1-year term. Unfortunately, that is the case in today's awful interest rate environment. The best 1-year CD rate that's available nationwide is 1.30% APY ($25K minimum) at Alliant Credit Union.
For a bank, the best 1-year CD rate is 1.15% APY at CIT Bank. This also has a $25K minimum deposit, but unlike Alliant, it has an add-on option and a bump-up option (see my review).
These rates are accurate as of 10/26/2011.