New Top 5-Year CD Rate at Melrose Credit Union


Melrose Credit Union just increased the rate of its 5-year CD and IRA CD by 10 basis points to 2.37% APY. Minimum deposit is $5,000 for regular CDs and $4,000 for IRA CDs. The rates of the shorter-term CDs had no change. This is the first rate increase since last March. Thanks to DA member cumulus who reported this rate hike in the DA forum.

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. My first Melrose post was in 2006, and I don’t remember a time since then when Melrose didn’t offer competitive CD rates. Its rates have gone down with the interest rate environment, but they have never dropped to uncompetitive levels.

One important 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 0.50%), 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 2010 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. It now has over $2 billion in assets (up from $1.85 billion early this year).

The credit union continues to have strong financials. Its overall health grade at is an A+ with a Texas Ratio 1.41% (excellent) based on June 30, 2014 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).

How This CD Rate Compares

Melrose Credit Union’s 5-year CD rate is very competitive for nationally available CDs. Only the 5-year CD at Chartway Federal Credit Union has a higher rate. Below is a comparison of the rates:

Interest Rate CD Length Institution
2.52% APY 60-71m Web-Only CD ($10K min) Chartway Federal Credit Union
2.37% APY 5-yr Share Certificate ($5K min) Melrose Credit Union
2.37% APY 5-yr CD ($100K min) Nationwide Bank

These rates are accurate as of 10/30/2014.

To look for the best nationwide CD rates and the best CD rates in your state, please refer to our CD rates table.

Related Pages: CD rates, IRA rates

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