Patelco CU (CA) Adds 75 Basis Points To 60-Month CD
Deal Summary: 60-Month Certificate, 2.75% APY, $1k minimum deposit
Patelco Credit Union (Patelco CU) started the week by raising the rate on its 60-month Certificate (2.75% APY). The minimum opening deposit is $1k, with no stated balance cap. Monday’s 75 basis point increase was the largest rate change for the 60-month Certificate ever, and the new 2.75% APY is highest in seven years.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 2.00% | $1k | - | Patelco Credit Union | 60 Month CD | |
| 2.00% | $500 | - | Patelco Credit Union | 60 Month IRA (Traditional, Roth, CESA) |
The 60-month Certificate is also offered as an IRA (Traditional, Roth, CESA) earning the same APY, but with an opening deposit of only $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.
DA reader, cumulus, pointed out in his Forum post,
As Ken's EWP calculator will tell you, the effective APY's on these CD's are excellent;
attractive "parking spots" for those awaiting/expecting rate hikes in these time frames.
Here’s what those “excellent” effective yields look like:
2.43% APY, closed at 4 years
2.31% APY, closed at 3 years
2.08% APY, closed at 2 years
1.85% APY, closed at 18 months
1.37% APY, closed at 1 year
In addition to being easy to use, DA’s Early Withdrawal Penalty Calculator, breaks down the effective APYs on a month-by-month basis.
3-Year CD
Patelco CU continues to offer a very competitive 3-year CD (2.00% APY), which I wrote about in this February blog post. Since this 3-year CD has an early withdrawal penalty of only 90 days of interest, the 3-year CD has effective yields that are higher than the 5-year CD, when closed before 14 months.
Availability
Headquartered in Pleasanton, California, Patelco Credit Union’s field of membership (FOM) is primarily residency and employment based.
DA readers may remember that in the past membership in Patelco CU was open to virtually anyone, but that changed almost two years ago. I have to admit that every time I check out Patelco CU’s website, I hope I will be pleasantly surprised to see an easy membership requirement; I’ll keep hoping.
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 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 DepositAccounts.com, with a Texas ratio of 2.86% (excellent) based on December 31, 2016 data. In the past year, Patelco has increased its total non-brokered deposits by $670.16 million, an excellent annual growth rate of 16.44%. Please refer to our financial overview of Patelco Credit Union (NCUA Certificate # 68579) for more details.
Patelco Credit Union was established in 1936 with only $500 in assets. The Credit Union’s name is derived from its original members: 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 307,800 member and assets in excess of $5.4 billion.
How the CD Compares
When compared to the 223 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available within the FOM, Patelco Credit Union’s 60-Month CD APY currently shares the top spot with Mountain America Credit Union’s 60-Month Term Deposit.
*Note: Melrose Credit Union is currently operating under an NCUA conservatorship.
These rates are accurate as of 3/29/2017.
To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table or our Rates Map page.
Very helpful and professional.
As PenFed has continued to eviscerate its 5-yr rate, the "delta" currently is 70 bps, enough to get my attention.
I would like to utilize this rate in my CD ladder. Any way to qualify for membership other than reside/work/worship/school in the specified California areas or employed / pensioner with the listed companies or organizations? Any organizations we can join to be eligible?
Although I could not locate a list of qualifying companies, trade groups, organizations, etc., you can type in a letter or portion of a word within the online application form under Eligibility, and a list will appear of every qualifying organization containing that letter or combination of letters. It will give some idea of who may qualify.
The CSR told me that only employment by the organzation (or presumably being a pensioner) would qualify. However, the inclusion of trade groups and associations causes me to question that. I was able to see that the Sierra Club qualified. Again, employees only? The Sierra Club's website did not tout Patelco Credit Union as a benefit of membership; it was noted, however, as an employment benefit.
The CSR also stated that they change their rates, if at all, on Fridays. So, we may have at least another full week to apply. Was unable to reliably determine at what point in application for an IRA CD that the rate locks. I'm seeking to make a trustee-to-trustee transfer of an IRA from my brokerage, which can be time-consuming and beyond my control. The very inexperienced CSR to whom I spoke said that I would have 10 days to complete the transfer.
Once a member, you could claim the fantastic interest rates allowed you to move to more permanent quarters. After all, "once a member, always a member".
Last I checked, Patelco had no restrictions on potential members being homeless. They merely needed to be "residents".
California has rather loosy-goosy laws on residency. If one really, truly, wants to join Patelco, then grab a sleeping bag, head for a homeless shelter, declare yourself a resident, borrow an on-line connection, and join. A week later, of course, you can un-declare, renounce your residency, and go about your business.
For your joke of the week, California Courts have held that a primary indicator of residency is applying for or obtaining benefits restricted to California residents.
Huh?
For example, did wealthy English noblemen chase foxes in order to eat them? Of course not. They did it because they could, and then to brag they'd treed a fox.
Do DA readers chase rates because they really, truly, need the money to make ends meet? As with the fox-hunters, my suspicion is they don't. The thrill is in the hunt.
Where bragging rights consist of a few bps in an obscure ad in a local newspaper by a credit union with easy membership, we are all fox-hunters.
Is that so bad?
"Only one 60-month Share certificate and only one 60-month IRA Certificate per IRA type."
Beware of this if you were planning on opening multiple certificates.
https://www.patelco.org/growsavings
https://www.patelco.org/Rates/#CDs