As CD rates continue to fall, there's a new type of CD that some credit unions and banks have introduced that can help you get higher rates. As you might expect, there's a downside. They're not a buy-and-forget CD. To qualify for the top rate, you'll need an active checking account. The latest credit union that I've noticed offering this type of CD is Members Cooperative Credit Union in Minnesota. It's called the MembersPlus Share Certificate, and rates are very competitive. The rates for a $100K minimum deposit are 3.20% APY for a 5-year term, 2.30% APY for a 4-year term and 2.00% APY for a 3-year term. Rates are lower for smaller deposits and for the regular CDs that don't have the active checking requirements. These rates are listed in the credit union's savings rates page as of 7/6/2012.
At the bottom of the rate table, the small print describes how a member can qualify for these MemberPlus CDs:
Requires at least two products, one of which is an active checking account; active checking means a minimum of five debits per month.
This CD is similar to a reward checking account in that it requires debit card usage. The credit union's Share Draft checking account is a free checking account with no monthly fees. There's also a Classic Checking who are at least 50. This offers the same features as the Share Draft with some additional perks such as free electronic or wire transfers.
Credit union membership is open to those who live, work, worship or attend school in Aitkin, Carlton, Cook, Itasca, Koochiching, Lake or St. Louis County, Minnesota. Please refer to the credit union's membership page for more details.
Credit Union Overview
MCCU branches are located in the cities of Duluth, Cloquet, Aitkin and McGregor.
The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 9.46% (above average) based on March 2012 data. Please refer to our financial overview of Members Cooperative Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 60216).
How These CD Rates and Features Compare
The extra work that these CDs require do pay off with higher interest rates. They're much higher than the standard CDs that are nationally available. The highest 5-year CD rate is 2.25% APY at Fort Knox Federal Credit Union (59 month CD). The highest 4-year and 3-year CD rates are 1.96% APY and 1.76% APY at Melrose Credit Union. These rates are accurate as of 7/6/2012.
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.