Patelco Credit Union (Patelco) recently informed its membership about its newest product: a 3-year Flexible Rising Rate Certificate, earning a blended 3.50% APY that can be opened with a $250 minimum deposit.
The Flexible Rising Rate Certificate is also offered as an IRA (Traditional, Roth, CESA) earning the same APY with the same funding requirements.
According to the fine print on the promotion page, the Flexible Rising Rate Certificate “will receive an automatic interest rate increase once per year on the anniversary date for the term of the certificate.” The fixed APYs are:
- 3.00% APY – Year 1
- 3.50% APY – Year 2
- 4.00% APY – Year 3
The flexibility component is the ability to make penalty-free withdrawals (partial or complete) “for a period of ten (10) calendar days following the anniversary date."
Any withdrawals made outside the approved 10-day period are subjected to the Early Withdrawal Penalty, as stated in Patelco CU’s Member Handbook.
Early withdrawal penalties on certificates with terms up to 47 months will
equal the lesser of dividends earned on the Certificate or 90 days’ dividends.
Thanks to the DA readers who emailed me news of this promotion and those who joined the conversation about the Flexible Rising Rate Certificate in the Forum.
Headquartered in Pleasanton, California, Patelco Credit Union’s field of membership (FOM) is primarily residency- and employment-based.
Membership in Patelco CU used to open to virtually anyone, but that changed more than three years ago. Every time I check out Patelco CU’s website, I hope to see an easy membership requirement. While that hasn’t happened, Patelco did add six additional California counties last year.
Counties: Individuals who live, work, worship, or attend school in the northern California counties of Alameda, Contra Costa, El Dorado, Marin, Merced, Napa, Placer, Sacramento, San Francisco, San Joaquin, San Mateo, Santa Clara, Solano, Sonoma, Stanislaus, or Yolo are eligible to join.
Cities: Individuals who live, work, worship, or attend school in the California cities of Bakersfield, Eureka, McKinleyville, or Santa Cruz also qualify.
Employment: Employees/pensioners of any of more than 1,100 associations, trade groups, chambers of commerce, or federal government agencies also qualifying for membership.
Education: Students/alumni of the University of California Berkeley, San Francisco State University, and California State University East Bay are eligible to join.
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 Flexible Rising Rate 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 2.59% (excellent) based on September 30, 2018 data. In the past year, Patelco has increased its total non-brokered deposits by $466.22 million, an excellent annual growth rate of 9.01%. 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 342,000 member and assets in excess of $6.4 billion.
How the Flexible Rising Rate Certificate Compares
When compared to 262 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 Flexible Rising Rate Certificate blended APY currently ranks first.
These rates are accurate as of 12/24/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.