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Patelco Credit Union

5.50% 9-Month CD at Patelco Credit Union (Available to All)


Patelco Credit Union has started a new certificate special with a yield of 5.50% APY and a term of 9 months. The minimum deposit is $1,000. It requires direct deposit with a minimum of $150 per month starting within 45 days of the CD. Without direct deposit, the rate will fall to the standard rate for a 9 month term (which is currently 4.76% APY). The funds deposited must be new to Patelco. It's also available as an IRA certificate. Patelco is also offering 5.50% APY on terms of 12 to 23 months for an IRA certificate without the direct deposit requirement.

Although this is a decent deal, it's a letdown compared to their past CD deals. In May they had been offering a 5.75% APY 14-month certificate without a direct deposit requirement (see post). Patelco still has its new-member special with a 7% APY 12-month certificate. Unfortunately, the the maximum deposit is only $1,000 (see post). Also, refer to that previous post for info on Patelco's Treasury Income Account and HSA, both of which are pretty good deals.

Patelco is one of the few credit unions in which anyone can be eligible to join. See this Patelco page for the full eligibility list. Note at the bottom it states that anyone can join the California Association for Older Americans regardless of age or geographic location. You can apply for Patelco membership online. In the Eligibility section of the membership application if you type "Older Americans", in the lookup field, this association should appear in the eligibility list of step 2.

Patelco membership requires a minimum initial deposit of $5 into the savings account. Note, you'll be charged a $3/month fee if your total deposits (the sum of savings, checking, certificate, IRA, and money market balances) is under $150. This fee will also be waived if you have direct deposit or if you have Patelco's Free Checking Account.

An important issue about Patelco is that it is NOT federally insured by the NCUA. It's privately insured by American Share Insurance (ASI) for up to $250K per account. For more discussion on this issue, please see this post.

Thanks to the reader who left the comment about the new Patelco rates.

[Edited 7/10/07: Updated info on $3/month fee.]

Related Pages: Patelco Credit Union, Chicago, San Francisco Bay, Sacramento, CD rates

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Anonymous   |     |   Comment #1
I believe that the monthly fee is waived if your total deposits is more than $150. I have less than $150 in my savings account and was never charged a fee.
Banking Guy
Banking Guy (anonymous)   |     |   Comment #2
Thanks for the clarification. You are correct. I found these details described in their savings/checking account brochure online. I've updated the post with this info.
Rainman (anonymous)   |     |   Comment #3
Evidently Patelco still reports their quarterly financial data to the NCUA. However, the only way to access this data is by entering their Charter Number 97082 at this URL:


Here's the link with their Charter Number already entered:


If you try to search for Patelco on this page, you won't find them:


Reviewing the latest Ratio Analysis, it looks like they are having more delinquent loans and charge-offs than their peers. Something to consider before investing a lot in their CDs.
timorous beastie
timorous beastie (anonymous)   |     |   Comment #4
I spoke with CSR today, regarding the direct deposit requirement. She said that initially this was a requirement, it no longer is. The website of Patelco accurately describes the terms and conditions.
Anonymous   |     |   Comment #5
Thank you, timorous beastie, you saved my "arse" today. I just opened a new CD, printed out the application, and only THEN did I see the monthly ACH requirement, which remains on the application through error. I was very confused, and they are CLOSED today, Christmas Eve. I had not seen this ACH requirement when I looked at their rates page on-line. Though I am unable to contact them, your post has made all clear. Thanks again!!
Anonymous   |     |   Comment #6
I just opened a new CD a few days ago, and cancelled it today - they have a frightfully inadequate security system, compounded by even worse customer service. Unfortunately, I learnt this the hard way, when I saw double ACH debits, have spent 3 hours on the phone with multiple CSRs trying to correct the situation, and they refuse to courtesy refund the overdraft charges I will now have to foot because of their error!