Dedicated to Deposits: Deals, Data, and Discussion

Special CD Rates at Velocity Credit Union in Texas - Easy Membership

POSTED ON BY

Velocity Credit Union

Update 11/19/2011: The promotion has been extended to November 30, 2011. Also, there are issues with Velocity's online application. I have more details in this blog post.

Velocity Credit Union did something that is unusual these days. It came out with a CD special with very competitive rates. The yields are 2.83% APY for 5 years, 2.12% APY for 3 years and 1.51% APY for 2 years. Minimum deposit is $5,000. These rates are listed in the credit union's promo page as of 11/8/2011. These special rates are scheduled to last through 11/21/2011. Since these are specials, Velocity's Elite Reward rates do not apply. Thanks to the reader ADB4IN who noted this special in the forum.

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Accounts having a term greater than one year, the penalty imposed will equal 180 days of dividends on the amount withdrawn.

Membership Eligibility

Velocity Credit Union's online application provides an easy way for anyone to join. The application is provided by Andera which 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 share 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 CD Rates Compare

These special CD rates are very competitive compared to other CDs that are nationally available. The special 2-year CD rate is not quite as high as the best 2-year CD rate which is 1.70% APY at Alliant Credit Union. Velocity's special 3-year CD rate is above the previous leader, 1.91% APY at Melrose Credit Union. For 5-years, it's just under Digital Credit Union's 2.86% APY, but this DCU rate requires a checking and credit card relationship. These CD rates far exceed what you can get at banks. The best nationally available 5-year bank CD rate is 2.25% APY at US Bank (59-month CD special). These rates are accurate as of 11/8/2011.

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:


  Tags: Velocity Credit Union, Texas, CD rates, IRA rates

Related Posts

Comments
16 Comments.
Comment #1 by Anonymous posted on
Anonymous
Does anyone know why a credit union would want to get out of NCUA to something else? Can they just plain decide to do this ?

1
Comment #3 by KenBDG posted on
KenBDG
It appears the management's main reason was cost. I have the details in this post. I also have the final outcome of what happened in this post.

Only state-chartered credit unions in 9 states can choose to drop NCUA. And credit union members must vote in favor.

2
Comment #4 by J_Norton posted on
J_Norton
How do I get the promo CD rates. I followed the application process and it presented to me the regular CD rates which are much lower than the promos.

2
Comment #5 by Anonymous posted on
Anonymous
#4--Right now, I'm not sure anyone can get the promo rate, because Velocity is having trouble with its online application system.  A CSR told me I'd get the promo rate automatically by applying for a $5,000 CD, so I did that.  When I tried to verify trial deposits, however, a system error occurred, which the same CSR said a number of customers had experienced.  I had to  reapply, and I'm waiting for the new trial deposits to show up.  The Velocity website was also down for a while on Wednesday.  I'm persisting, but losing hope that I'll be able to take advantage of the deal.

2
Comment #6 by J_Norton posted on
J_Norton
I just signed up for a  CD andit worked for me. Now I am waiting for the verification of my account with those micro deposits. I hope that Anonymous is right about getting the promo rates automatically if the deposit is more than $5000. By the way, the max amount is $101000.

1
Comment #7 by Anonymous posted on
Anonymous
I also was unable to use the on-line application all day Thursday...kept indicating the credit inquiry failed and I would have to call Velocity directly and they are closed today.  Does anyone know whether Velocity does a hard credit pull on an application?  Perhaps that is why my credit check keeps failing.

J_Norton. Did I read your post correctly that these promo CD rates are limited to under 100K?  I never asked about that.

1
Comment #8 by Anonymous posted on
Anonymous
The max on the CD was shown as 101K.

1
Comment #9 by J_Norton posted on
J_Norton
Oops,the last post was me not Anonymous.

The Max on the CD was shown as $101K.

1
Comment #10 by Anonymous posted on
Anonymous
looks like the rate is 2.32 for 5 year now.  11-14-11

1
Comment #11 by Anonymous posted on
Anonymous
I tried to open the promo account and was told by the representative that first I must deposit the money in the savings account and when that clears, if it's before Nov 21, I must then call and verbally request that the money from the savings account be put into a promo CD.  The problem with that is the savings account would only allow me to transfer $20,000 from an outside account.  Further, I have to wait for micro deposits to show up in this outside account before the transfer of $20,000 can occur.  They obviously don't want to make the process easy.

1
Comment #12 by Anonymous posted on
Anonymous
To Anonymous #11:  Do you have a CU Shared Network branch nearby.  If so you might consider funding the savings account with a check deposit in person.   That should eliminate the micro deposit turnaround delay.  However, the funds would still be subject to the usual hold period.   Some CUs will open/lock CDs even with this hold but Velocity could be different, particularly because this is for a promo.   If you're game to try this approach I'd first discuss it with a Velocity CSR.  Please post the results here if you do so!

1
Comment #13 by Anonymous posted on
Anonymous
For those still reading this post, I've completed opening my new $5k CD (I'm #5), and  got the 2.10% 3-year promotional rate by using the online application process.  It was originally booked at 1.70%, then adjusted upward manually.

I'm probably going to wire funds into my savings account to open additional CDs by 11/21.  I've asked Velocity for guidance on this by e-mail.

1
Comment #14 by Anonymous posted on
Anonymous
In my opinion, DepositAccounts.com should really advise its readers to avoid Velocity Credit Union.

Based on the stories others have posted here, it seems like Velocity makes it as difficult as

possible to open a CD.  And I looked up reviews of Velocity on YELP and GOOGLE and the

negative reviews were absolutely chilling. 

1
Comment #15 by Anonymous posted on
Anonymous
For those interested, I just spoke with a representative who told me that the promotional rates have been extended to November 30, 2011. 

1
Comment #16 by Anonymous posted on
Anonymous
IMPORTANT!!  To get the promotional rate, you can't open the CD online.  The website setup is very poor, because the link from the promo takes you to online enrollment, which indicates a 2.32 rate.  I called to confirm that you would in fact get the promotional rate, and the CSR said yes.  I called the next day to confirm, and was told that the information was incorrect; my CD had been set up at 2.32.  They gladly changed the rate, but the key is that I had to ask for it.  IF YOU OPENED A CD ONLINE, BE SURE TO CALL IN TO CHECK.  What you have to do is get the funds in a share savings account, and then phone to open the promotional CD. 

1
Comment #17 by Anonymous posted on
Anonymous
They will change the rate manually. I opened one @2.32 online yesterday and today when I logged in, saw it is 2.83.

1