California Coast Credit Union Adds 5-Month CD, 9.00% APY ($3k Max)

California Coast Credit Union (Cal Coast) is celebrating its 90 years of service. As part of its year-long Anniversary Celebration, Cal Coast is offering a 5-month Celebration Certificate, which earns an eye-catching 9.00% APY.

There is a limit of one Celebration Certificate per member, excluding business and IRA accounts. New money is required, with a minimum opening deposit of $500. Maximum opening deposit is $3k. CSR confirmed that funding the Celebration Certificate can be done by credit card, up to the balance maximum of $3k. While credit card funding may be tempting, remember that this type of transaction can sometimes be considered as a cash advance, triggering cash advance fees and interest charges.

To earn the stated 9.00% APY,

A qualifying checking account with eStatements is required, and must remain active with at least 1 transaction per month, during the certificate term. Eligible transactions include, but are not limited to, Direct Deposit, Preauthorized Payments, Checks, ATM, POS, Debit Card, and Bill Pay.

Other products (already existing or opened within 30 days of the Celebration Certificate opening) can be substituted for the checking relationship. These include,

a consumer loan (excluding share secured loans and Mastercard credit card account), or a minimum balance of $5,000 in a money market account, a regular certificate account, or an IRA certificate account. The stated alternative deposit account must remain open for the certificate term period.

According to CSR, the 5-month Celebration Certificate has no Early Withdrawal Penalty because no withdrawals are permitted. CSR also stated that maturing funds will automatically transfer to a Cal Coast savings account.

As DA reader, AnnO, pointed out, new Cal Coast members can easily earn a $50 bonus, now through March 30, 2019.

You’ll score $50 when you open a Free Checking account with eStatements, deposit $25 into your new savings account and add direct deposit or online banking.

The Credit Union’s Our Coast Into Cash referral program pays members $50 every time a family member or friend joins Cal Coast, up to a maximum of $500 per year.

Thanks to DA reader, AnnO, for her Forum post about the Celebration Certificate.

Availability

Headquartered in San Diego, California Coast Credit Union's field of membership (FOM) includes virtually all US citizens and resident aliens who have a valid Social Security number.

Membership-eligible individuals fall into two categories: those who live or work in the California Counties of Riverside or San Diego, and those that don’t. If you’re in the “those that don’t” category, the only membership requirement is a $15 membership fee, slightly higher than the $5 fee that Riverside and San Diego residents pay.

Joining Cal Coast and/or opening a Celebration Cerficate can be done online or at any of 26 California branches located in Chula Vista (2), El Cajon, Encinitas, Escondido, La Mesa, Menifee, Murrieta (2), National City, Oceanside, Poway, San Diego (11). San Marcos, Santee, and Temecula.

Credit Union Overview

California Coast Credit Union has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.38% (excellent), based on December 31, 2018 data. In the past year, Cal Coast increased its total non-brokered deposits by $69.22 million, an excellent annual growth rate of 3.46%. Please refer to our financial overview of California Coast Credit Union (NCUA Certificate # 66584) for more details.

Founded in 1929 by a group of San Diego teachers, California Coast Credit Union is the longest-serving financial institution based in San Diego. Currently the 101^st largest credit union in the country, Cal Coast has more than 181,000 members and assets in excess of $2.5 billion.

How the Celebration Certificate Compares

Obviously, the 5-month Celebration Certificate’s 9% APY far outstrips any rate offered on any CD tracked by DepositAccounts.com, regardless of length-of term. The rate loses a bit of its luster when you take into account the short term and the very low balance cap. If you do the math (0.09 x 3,000 x 5/12), the result is a maximum return of about $112. While the reality of $112 may not match the expectations of a 9% APY, consider that the same $3,000 in the current top-rated savings account (2.45% APY at Rising Bank) for five months would earn approximately $30.

When you take into account the required active checking relationship, the 5-month Celebration Certificate essentially becomes a $112 checking bonus. Add in the actual $50 cash bonus for opening a new checking account, and you’ve earned $162 without much effort.