People's Alliance Federal Credit Union continues to offer competitive CD rates. The rates have gone down since my last post, but they remain competitive. Another plus is that the early withdrawal penalty is only 3 months of interest. A reader who opened a CD at this credit union informed me of this penalty (I wasn't able to find the disclosure online so make sure you request one before opening a CD.) The best CD rates are currently 2.24% APY for 5 years, 2.00% APY for 4 years, 1.68% APY for 3 years and 1.31% APY for 2 years. Minimum deposit is $500. These rates are listed at the credit union's rates page as of 10/28/2011.
People's Alliance offers a free checking account with no minimum balance requirement and with no monthly maintenance fee. It also belongs to ATM networks which gives members surcharge-free access to ATMs nationwide.
Membership into People's Alliance FCU is open to those who live, work, worship or attend school in several areas of New York including parts of Brooklyn, New York, and in Miami and Hialeah, Florida. You can also be eligible via Select Employer groups and via family. Please refer to the credit union's Membership page for more details. Membership requires a minimum deposit of $50 into the prime share savings account.
People's Alliance Federal Credit Union branches are located in the New York cities of Jamaica, Brooklyn, Bronxville, Ronkonkoma, Westbury, Yonkers and Hauppauge, and in Miami, Florida.
The credit union has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 9.12% (above average) based on June 2011 data. Please refer to our financial overview of People's Alliance Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 3633).
How These Rates Compare
The best nationally available 4-year CD rate is 2.20% APY ($25K minimum) at Alliant Credit Union and the best 5-year CD rate is 2.68% APY at Melrose Credit Union. You can get a little higher rates at Digital Credit Union, but this requires a relationship checking.