Patelco Credit Union (CA) Offers 2% APY on 3-Year CD


Deal Summary: 36-47 Month Share Certificate, 2.00% APY, $1k minimum deposit

Availability: Residents of ten Northern California counties and twelve named Northern California cities; employees/retirees of 1,100+ SEGs

At the end of last week, Patelco Credit Union (Patelo CU) significantly raised the rate on its 36-47 month Share Certificate (2.00% APY). The minimum opening deposit is $1k, with no stated balance cap. For the 36-47 month Share Certificate, members can choose any term from 36 to 47 months in one month increments.

Friday’s 65 basis point increase was the first rate change for the 36-47 month Share Certificate in nearly two years, and the new 2.00% APY is highest seen in seven years.

2.00%$1k-Patelco Credit Union36 - 47 Month CD
2.00%$500-Patelco Credit Union36 - 47 Month IRA (Traditional, Roth, CESA)
Accounts mentioned in this post. Rates as of March 1, 2017.

The 36-47 month Share Certificate is also offered as an IRA (Traditional, Roth, CESA) earning the same APY, but with a lower opening deposit of $500.

As stated in Patelco CU’s Ask A Question page, the Early Withdrawal Penalty reads as follows:

The penalty for early withdrawal on a CD is 90 days loss of interest, or less if the CD has been open for less than 90 days.
Certificates that are 48 months or more are subject to a 180 day penalty.

As can be seen using DA's Early Withdrawal Penalty Calculator with a 90-day EWP and a 2% APY, the effective APYs when the 36-47 month share certificate is closed early results in very competitive rates. Two examples include a 1.50% APY when closed after one year and a 1.76% APY when closed after two years.

Thanks to DA reader cumulus for posting news of this CD rate increase in the DA forum.


DA readers may remember that in the past, membership in Patelco Credit Union was open to virtually anyone, but that changed almost two years ago. The field of membership (FOM) is now structured as primarily residency and employment based.

Community: Individuals who live or regularly work in the northern California counties of Alameda, Contra Costa, Marin, Napa, Sacramento, San Francisco, San Mateo, Santa Clara, Solano, or Sonoma are eligible to join.

Residency: Individuals who live, work, worship, or worship in the California cities of Atwater, Auburn, Bakersfield, Eureka, Laguna, Los Banos, McKinleyville, Merced, Rocklin, Roseville, Santa Cruz, or Tracy also qualify.

Employment: Employees and pensioner of any of 1,100+ associations, trade groups, chambers of commerce, or federal government agencies (including AT&T and Walgreens) also qualifying for membership.

Education: Students attending University of California Berkeley, San Francisco State University, and California State University East Bay are eligible to join. Members of the San Francisco State University Association or the California State University East Bay Alumni Association also qualify.

Relationship: Family members or roommates of current Patelco members are eligible to join, as are minor children or surviving spouses of a deceased employee/pensioner eligible for membership.

Joining Patelco and/or opening a Share Certificate can be done online, or by visiting any of 37 California branches located in Berkeley, Brentwood, Campbell, Castro Valley, Citrus Heights, Concord, Daly City, Danville, Dublin, Elk Grove, Fairfield, Folsom, Fremont, Hayward, Lafayette, Livermore, Milpitas, Novato, Oakland (2), Pleasanton (2), Redwood City, Rohnert Park, Roseville, Sacramento, San Bruno, San Francisco, (2) San Jose, San Leandro, San Mateo, San Ramon (2), Santa Clara, Santa Rosa, and Walnut Creek.

Credit Union Overview

Patelco Credit Union has an overall health grade of "A+" at, with a Texas ratio of 3.08% (excellent) based on September 30, 2016 data. In the past year, Patelco has increased its total non-brokered deposits by $721.06 million, an excellent annual growth rate of 18.38%. Please refer to our financial overview of Patelco Credit Union (NCUA Certificate # 68579) for more details.

Patelco Credit Union was established in 1936 with very modest assets of $500 for the benefit of the employees of Pacific Telephone and Telegraph Company (now part of AT&T). Patelco Credit Union has grown to become California’s sixth largest credit union, with more than 305,400 member and assets in excess of $5.6 billion.

How the Share Certificate Compares

When compared to the 246 similar length-of-term CDs tracked by that require a similar minimum deposit and are available with the FOM, Patelco Credit Union’s 36-47 Month Share Certificate APY currently ranks first.

Interest RateCD Length of TermCredit Union/Bank
2.00% APY36-47 Month Share CertificatePatelco Credit Union
1.85% APY37-Month CD SpecialRTN Federal Credit Union
1.81% APY3-Year Share CertificateEverBank

These rates are accurate as of 2/27/2017.

To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table or our Rates Map page.

Kaight   |     |   Comment #1
Ahhhh, Patelco . . . . . . this brings back memories. Patelco is one of only two credit unions ever to have kicked me out. It was years ago. Now mind you, I did nothing wrong, I pilfered no money or any such thing. I did not owe them money. But I did (and do) live several thousand miles away. What I'm unable to recall, with much time having passed, is how I qualified for membership in the first place. And it was so long ago that I did not, at that time, realize the importance of hanging onto CU memberships. So when they booted me I just went along with it and raised no fuss. Pity now that their rates appear to be becoming more competitive.
Carpline   |     |   Comment #2
If memory serves me correct, it was the Community Association for Engaging Youth that anyone could join.
???   |     |   Comment #4
in 2001 is was American Consumer Council
carly   |     |   Comment #3
I'm glad to see that their rates are finally coming up a bit. They're local to me, but they are a bit of a hassle as much has to be done in person. But their 3.00% MMA is still going and is wonderful.
LuvCD   |     |   Comment #5
2k max. on mma
???   |     |   Comment #6
About 2.40% on 5k with adept transferring
Bozo   |     |   Comment #7
For current members (or for those contemplating), the offer seems worthy. In this rate-environment, as I previously noted in other threads, anything longer than three years gets me a bit nervous and jerky. I did a quick-and-dirty calculation of the taxable-equivalent yield of the Five-year Treasury, and this CD is right in the ballpark. I'll be exploring the EWP with the local branch manager and get back to everybody. For after-tax CDs, I can't tell from the members' handbook if partial withdrawals  are permitted. Anybody have any info to share in that regard?

So, anyway, I thought I'd call the toll-free CSR number and ask the question. Dead end. So I called the branch. The branch manager wasn't in, but the lady I spoke to is inquiring of the home office. I didn't realize it was a complicated question (whether partials are permitted on after-tax CDs, and if so, whether the EWP applies only to the partial), but apparently it is. She said she'd call me back. That was an hour ago.

Lesson learned: a "break strategy" is one thing. A "break strategy" for partial withdrawals might be a totally different animal. Before you plop your hard-earned money into that CD, make sure everybody's on the same page.
Bozo   |     |   Comment #8
As it is now officially 5:33 PM local time (and everyone has gone home), I must assume they don't have a clue as to the answer, or they are ducking me. Neither alternative is reassuring.
LuvCD   |     |   Comment #9
As you know...asking for a pre-nupt does not improve relationships...going in is risky business! And, you know it!
Bozo   |     |   Comment #10
LuvCD, I never thought of it that way. A pre-nup for a CD. Hilarious!
Bogey   |     |   Comment #11
I agree. Nervous and jerky about a CD strategy? Why make investing in CDs more complicated than they actually are? If contemplating partial withdrawals, just divide the money among several CDs instead of all in one. Then just break one or two CD contracts if a person is so inclined. EWPs? I don't give them a second thought. CDs were never meant to be traded like stocks and bonds. That is why many financial institutions have raised the EWPs.

Establish a well built CD ladder and sit back and relax. Also hold some reserve money in a more liquid account.
Bozo   |     |   Comment #12
Update alert. Believe it or not, The local branch lady got back to me at precisely 6:33 PM local time. Partial withdrawals are not allowed. I can only assume my query went very far up the flagpole. And as to what to do? See poster Bogey . I will split the after-tax CD into bite-sized pieces. After all, the yield on 10 after-tax $25,000 CDs is exactly the same as the yield on a single $250,000 CD. Many roads to Dublin.
Bozo   |     |   Comment #13
Actually, as a silent protest to this idiotic policy (no partial withdrawals), we could all open multiple CDs in increments of the minimum ($1000). "Yes, Ma'am" says Bozo. "I sure do like that 2% 36-month CD you're offering. I'll take 175 of them at $1000 apiece, if you please. I'll wait."
LuvCD   |     |   Comment #14
When you get "older" breaking ira CDs is a non-issue...just a matter of targeting the tax rate "you" want. And with QCDs it's a piece of cake!
LuvCD   |     |   Comment #15
PS Bozo, in your spare time find out how we can join Gecu for their 2.75 for 5 years
Bozo   |     |   Comment #16
LuvCD, I will be the first to admit I need education on this "QCD". I'm a sucker for the next best thing. Got a link? With my IRA CDs at State Farm, PenFed, and Patelco, I'm protected with partial withdrawals with no EWP. Are "QCDs" better?
LuvCD   |     |   Comment #18
Get to gift $s to many charities that would otherwise require after tax $s and counts toward MQD and does not impact taxable income. Where is the quid pro to join Gecu in Cincinnati,i.e. Not corporate GEcu but the GE engine co. CU?
LuvCD   |     |   Comment #19
PS You need to also look "more" at SPIA in connection qualifying for Medicaid (Medi-Cal where u are).
Frugalson   |     |   Comment #17
I haven't had a Patelco CD in years. For some reason I seem to remember hearing that they put some limits on the amount of money that can be moved in/out via ACH. Is that correct? If I could still easily fund it with a a sizeable ACH ($10k+) from Alliant and then have it ACH'd back when mature that would be worth considering.
Sylvia   |     |   Comment #20
Alliant's daily cap on outbound ACH's is $25K, $100K for inbound, I believe. If you're planning to exceed those limits, there's shared branching of which Patelco is a participant. Can't speak to Patelco's ACH limits as I'm not a member.
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