Black Friday 24-month CD 3.00% APY At Public Service CU (CO)

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UPDATE 11/26/2016: No longer available.

Availability: Colorado residents; Partner Companies and Select Employee Groups.

With Black Friday little more than a week away, Public Service Credit Union (PSCU) is promoting its Black Friday 24-month CD (3.00% APY). The minimum opening deposit is $1k, with a balance cap of $10k.

This year on Black Friday, Public Service Credit Union wants you to earn money instead of spend it.

As the name suggests, the 24-month CD is only available on Black Friday (November 25, 2016) and must be opened in-branch. There is also a limit of one 24-month CD per household.

Branch hours may vary by branch, so check carefully.

According to CSR, the Early Withdrawal Penalty is 180 days interest.

$100 Checking Bonus

For a limited time, PSCU is offering a $100 checking bonus when opening a Free Checking account with Direct Deposit and eStatements.

Requirements

  • Limit of one bonus per new checking account.
  • May not have had a PSCU checking account in the last 12 months.
  • Minimum of $55 is required to open the new checking account.
  • Direct Deposit and eStatements must be established within 60 days of account opening.
  • Promotion must be mentioned when opening checking account.

Availability

Headquartered in Lone Tree, Colorado, Public Service Credit Union’s field of membership (FOM) is primarily residency based, with individuals who live or work in Colorado eligible to join.

Employees and individuals affiliated with a PSCU Partner Company (PC) or Select Employee Group (SEG) qualify for membership.

In addition, family members of current PSCU members are also eligible.

Note: PSCU’s Personal Membership page is rather vague and doesn’t provide much detail, such a list of the PCs or SEGs. I was able to confirm the residency portion of the FOM with CSR, but CSR wasn’t able to provide more specific information about the PCs, SEGs, or what constitutes “family members.”

Joining PSCU can be done online, or done in person at any of 29 Colorado branches located in Arvada, Aurora (3), Brighton, Broomfield, Centennial, Colorado Springs, Denver (7), Fort Collins (4), Greeley, Highlands Ranch, Lakewood, Littleton (2), Lone Tree, Loveland, Parker, Thornton, and Windsor.

As stated above, the Black Friday 24-month CD is only available on November 25, 2016, and must be opened in-branch.

Credit Union Overview

Public Service Credit Union (NCUA Charter # 64778) has an overall health grade of "A+" at DepositAccounts.com, with a Texas ratio of 3.06% (excellent) based on June 30, 2016 data. In the past year, PSCU has increased its total deposits by $199.04 million, an excellent annual growth rate of 14.81%. Please refer to our financial overview of Public Service Credit Union for more details.

Established in 1938, Public Service Credit Union is currently Colorado’s third largest credit union, with more than 190,800 members and assets in excess of $1.7 billion. While the Credit Union’s original FOM was public service employees, it has been expanded over the years to include all Colorado residents. In 2008, PSCU acquired Norlarco Credit Union, following the mismanagement of Norlarco CU’s residential loan program. A March 2008 Credit Union Times article provides some insight into the acquisition:

Demonstrating again what it says is a good faith gesture, Public Service
Credit Union said this week it has rehired more than 90% of the employees
at the now defunct Norlarco Credit Union which it took over last Friday.

How the CD Compares

When compared to the 286 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available to Colorado residents, Public Service Credit Union’s Black Friday 24-Month CD APY currently tops the list.

Interest RateCD Length of TermCredit Union/Bank
3.00% APYBlack Friday 24-Month CD ($1k min/$10k max)Public Service Credit Union
1.55% APY25-Month Special CD ($1k min/no max)Veridian Credit Union
1.51% APY29-Month CD ($1k min/$50k max)Hughes Federal Credit Union

The above rates are accurate as of 11/16/2016.

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

Comments
gregk
gregk (anonymous)   |     |   Comment #1
This Colorado resident is grateful for notice of Public Service CU's 3% 2 year offer.  While the Colorado residency requirement will pre-empt most interest in the CD on DA, for those of us who live here it's a very plausible alternative to Andrews FCU's 7 year offer at the same 3% rate, especially given uncertainty over what might happen with deposit rates in the Age of Trump, and wariness about committing funds for such a long term in light of the unknowns we're facing.  I was just on the brink of making a large investment in the Andrews' CD, - but with a lot of misgivings, - and now this much more immediately attractive (because of the shorter term) offer comes along to scramble the deck (we've not had choices like this in forever, but always ravenously jumped on that rare 3% CD that's come along in isolated fashion over the last 8 years, - Valor(sic), PenFed, & Northwest).  Perversely, my initial relief at PSCU's much shorter term has now been upset by the notion that perhaps 7 years is better after all, - that Trump's policies will provoke a whole new financial crisis, result in another (maybe worse) Great Recession, and put interest rates right back in the dumps just when my 2 year PSCU CD matures, and leave me stranded without any good options.  Sigh.

One wonders now if we'll see many more 3% (or higher?) offers for various terms in the coming months as expectations for higher rates (and higher inflation) increase. 
Anonymous
Anonymous   |     |   Comment #2
Just noticed the 10K balance cap which makes this CD offer an irrelevancy to me.

What a comedown. 

Delete my previous post, Ken.  It was mindless blather.

Andrews or bust.
Anonymous
Anonymous   |     |   Comment #6
Yeah, the $10K cap is pretty tough.  Gotta tell you, though, I'd still open this CD were I eligible.  Valor would be more than competitive with this if the current zero-penalty withdrawal feature were being offered with 30 day notice of rescission.  It is not.
Anonymous
Anonymous   |     |   Comment #3
BTW Ken, - comparing a 10K max CD with other FI's no max offers at the same term is of pretty questionable value (except for small-ball investors).
Anonymous
Anonymous   |     |   Comment #5
Throw 10K at it and treat it like a solid 2yr savings acct
Anonymous
Anonymous   |     |   Comment #4
Many of the higher rate offers have monetary limits or other limitations like geographic or office visit required. I'm going with the Andrews if I can make it through the process. The EWP is low so IF rates go up you can close the CD.
Ed
Ed (anonymous)   |     |   Comment #7
Andrew's FCU wins hands down. The best and highest interest rate long term CD so far.
Anonymous
Anonymous   |     |   Comment #8
"So far" is the key.  How will it look in a year or two (or after 7).  I'm not suggesting there's not a good argument for the Andrews CD, but there are grounds to be wary also.  In the end, whether "we do or we don't" isn't going to be fateful for many of us, - with our principle sure to stay intact no matter if we earn a percent or two more or less over any given term.  Inflation is the more worrisome thing if it reaches high levels. 
jimbeau
jimbeau   |     |   Comment #9
I popped for an Andrews 84 month @ 3% CD earlier in the year.  As far as how it will look in a year or two, use Ken's "EWP Calculator Tool".  If I bail on this thing before maturity, here's how the interest rate equation will pan-out.  After 1 year,  1.5%,  after 2 years, it's 2.27%.   So, unless Andrews changes the EWP, there's not much "interest rate" risk involved here.

The other side of the coin is the actual interest rate loss incurred by not purchasing CD's.  The spread is 2% per year versus a 1% savings account - and, 1% per year versus some of the 3, 4 and 5 year CD's that are out there.   On a million bucks, 1% a year comes-out to 10K per year.  Over 7 years, that's a real loss of 70K.  For the 2% spread that's 140K.

So, like Ken has said numerous times, as long as the EWP isn't onerous, a 5 year CD ladder still makes sense.  Being retired, I keep at least what I need to live-on in a 1-5 year CD ladder.  Beyond 5 years, I want some inflation protection.  So, that's tied-up in TIPS and iBonds.  Since I'm pushing 70, I don't go out further than 10 years with TIPS.

As far as inflation goes, iBonds and TIPS are about the only 100% safe hedge that's out there.  If you buy TIPS under par value at auction, you can't lose principal.  Due to last year's deflation, TIPS actually temporarily lost some principal.  However, if you hold the bond  to maturity, you're guaranteed to receive at least the par value of the bond.

As you may have noticed from Ken's iBond article, they're yielding nearly 3% for the next six months.  Unlike TIPS, they cannot lose principal.   And, after 5 years there's no penalty for cashing them in.  The downside to iBonds is that you can only purchase 20K a year (plus you can purchase I think up to 5K more with your federal tax refund).

The only reason that I purchased the Andrews 7 year CD this year was because TIPS and iBonds have performed so poorly over the last year or so due to deflation.   Basically, I was getting squat on them.   So, that 3% rate looked pretty good in comparison.  With the latest inflation figures, I'm going to buy more iBonds this year.  Maybe some more TIPS next year.

We'll see what happens.  Unless inflation takes-off obscenely, a point or two isn't going to make or break the situation.  However, the mortality tables will.   For my "age cohort" (late 60's), you have an annual mortality rate of 1% (cumulative mortality rate of 16%).   One does have to factor that into the equation when determing the term of one's investments!  
Anonymous
Anonymous   |     |   Comment #10
figured that out already.
don't die rich.
Anonymous
Anonymous   |     |   Comment #12
"Unless they changed EWP"...  you trust them...then.  Or did you do anything to reflect your understanding,e.g. no change to EWP on current CDs?
Anonymous
Anonymous   |     |   Comment #14
Some have spouses...thus 10k each for ibonds
Anonymous
Anonymous   |     |   Comment #11
Low EWP is what influenced me to open a CD with Andrews. I could have put more in this CD but I want some cash to invest if rates go up. I also have some CDs maturing next year. I don't see rates sky rocketing. CDs are just a part of my portfolio which is very diverse but on the conservative side.
Beverly
Beverly (anonymous)   |     |   Comment #15
Broomfield CO branch for new members had limit at $30K instead of $10K
Anonymous
Anonymous   |     |   Comment #16
Useful information had you said so sooner.