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1-Year Account Pays 3%? Yes, But …

Wednesday, May 21, 2014 - 5:51 PMHanscom Credit Union - Details
Hanscom Federal Credit Union is offering an unusually high interest rate — 3.00% APY — if you contribute $5 to $500 per month for one year to a CU Thrive certificate of deposit.

1-Year Account Pays 3%? Yes, But …
7
ShorebreakShorebreak2,622 posts since
Apr 6, 2010
Rep Points: 14,216
1. Thursday, May 22, 2014 - 11:19 AM
Good post, thanks. But in the end, it doesn't really amount to much of anything, is more about marketing and smoke and mirrors than about return.

It is for way too low an amount of money. The maximum principle you would have in the account at the end of the term would be $6,000. And as the article points out, if you subtract the $35 you might need to pay to join (by joining a particular organization that would qualify you for CU memebreship), your APY would come to only about 1.05%. And for that, you would have to go to the effort each month to make sure that you contribute the maximum to the CD.
4
me1004me1004370 posts since
Jan 16, 2010
Rep Points: 2,572
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