Melrose Credit Union just recently increased the rates of all of its CDs. This is the first rate increase since last December. Like we have seen with other institutions, the long-term CDs had the largest rate increases. The 5-year and 4-year CD rates increased by 15 basis points. The 3-year, 2-year and 1-year CD rates increased by 5 basis points. All CD terms are very competitive for nationally available rates. Thanks to DA member OldGuy who posted on this news in the DA forum. Below is a summary of the new rates as listed at Melrose Credit Union's share rates page as of 3/28/2014. I also included the old rates for reference:
- 2.27% APY 5-year CD (was 2.12%)
- 2.02% APY 4-year CD (was 1.86%)
- 1.66% APY 3-year CD (was 1.61%)
- 1.41% APY 2-year CD (was 1.36%)
- 1.15% APY 1-year CD (was 1.10%)
Minimum deposit is $5,000 for regular CDs and $4,000 for IRA CDs. The IRA CDs have the same rates as shown above.
One nice thing about Melrose Credit Union is that it has a long history of competitive CD rates on all terms from 1 year to 5 years. Its rates may go down, but they have never dropped to uncompetitive levels.
One downside is that Melrose Credit Union has a harsh and confusing early withdrawal penalty. Here's the early withdrawal penalty for CD terms over 1-year as listed in the disclosure (Make sure to request the latest disclosure from Melrose before you open a CD.)
18-60 Months term: Forfeiture of the first 180 days Dividend and a Reduction to the Share Savings Rate at the time of purchase.
Not only do you have to pay 180 days worth of interest on the principal, but you will be required to recalculate all of the interest earned to date at the share savings rate (which is currently 0.40%), and give back the difference.
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. It is part of the shared branch network (CU Service Centers).
Melrose Credit Union Financial Overview
Even though Melrose Credit Union only has one branch, it’s a sizable credit union with $1.85 billion in assets and $1.45 billion in deposits based on December 2013 data. It has grown quite a bit. Two and a half years ago (based on March 2011 data), it had $1.46 billion in assets and $1.11 billion in deposits.
The credit union continues to have strong financials. Its overall health grade at DepositAccounts.com is an A with a Texas Ratio 0.81% (excellent) based on December 2013 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).