A reader mentioned one nice feature of First Priority's certificates. They have a mild early withdrawal penalty. It's only 90 days of interest for terms of more than one year. If you enter "early withdrawal penalty" into the "just ask" box, you can see the full details:
If member's account has an original maturity of more than one year: the penalty we may impose will equal 3 months dividends on the amount withdrawn subject to penalty.
Let's say you need to redeem the CD early at only one year into the term (perhaps because interest rates have shot up). You would lose 3 of the 12 months of interest. For that year, you would have still earned 2.25% for the 3-year CD and a 2.62% for the 5-year CD. These are excellent 1-year rates. If interest rates stay low, you just keep the CDs.
First Priority has a history of offering top rates on its regular and special certificates.
Membership is open to those who live and work in Massachusetts' Essex County or Suffolk County. Also eligible are employees, retirees and family members of the Postal Community. Please refer to the credit union's Membership page for more details. Membership requires a minimum deposit of $25 into your share savings account.
Branches are located in Boston, East Boston, Lowell and Waltham, MA.
The credit union has some strong ratings for soundness: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 5 stars (superior) at Bankrate (based on 3/31/09 data). The credit union is federally insured by the NCUA (Charter # 66593).
Thanks to the reader Scott who mentioned these CD rates and mild early withdrawal penalty in the comments.
Other Competitive Certificate of Deposit Rates
- CD rates at DepositAccounts.com (overview of DepositAccounts.com)
- My weekly list of hot nationwide and local CD deals