Tuesday, January 19, 2010 - 1:49 PM

4.25% 7-Year CD to 2.00% 1-Year CD Continues at Montauk CU in New York City - Local Only

Montauk Credit Union continues to offer some very competitive CD rates as if 1/19/2010 including a 2.50% APY 24-month CD and a 3.75% APY 5-year CD. It's a small credit union that requires a branch visit, but they have an open charter membership. One downside is a harsh early withdrawal penalty. Refer to my December review for more details.

KenBDG5,147 posts since
Nov 29, 2009
Rep Points: 117,067

1. Wednesday, February 3, 2010 - 10:47 AM

I did some rough math in regards to Montauk Credit Union's seemingly very competitive CD interest rates on their web site and was surprised at what I came up with. Because they pay simple interest and not compound interest on their CD's the rates they offer are very misleading. If you invest in their 7 year CD paying 4.25% simple interest this actually equals to roughly 3.80% compound interest over the life of the CD. So I would be very cautious of how any bank or in this case credit union's interest is paid. The difference can be substantial on a large sum of money.

Anonymous963 posts since
May 9, 2010
Rep Points: 1,953