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Saturday Is Last Day for Patelco's 5.50% 9-Month CD


I just called Patelco Credit Union today to ask some questions, and I was told by the Patelco rep that the special 9-month CD is scheduled to end Saturday (1/5/2008) at the end of day (which is 2:00pm PST for Saturday). You should be able to apply for this CD online before then and be guaranteed the rate. I was told this applies to both funding by ACH or check. Also, I was told there's no limit to the amount of the ACH transfer.

Here are some other details about this special 9-month CD that I was told by the CSR:
  • All interest is credited at maturity.
  • There's no direct deposit requirement. It use to have this requirement, but it was dropped.
  • If you have to do an early withdrawal, you'll lose all of the interest. But you won't lose any principal.
  • The grace period at maturity is 10 days
  • At maturity you can call to close the CD and have the funds transfered to your Patelco savings or checking account
  • They'll send you a form 30 days before maturity in which you can instruct them to close it and have the money transfered
  • No paper certificate or receipt will be sent. You'll receive monthly statements that will include the CD and the CDs will show up online.
  • Beneficiaries can be added. They will send you a form.

Note, the interest rate is 5.46% with an APY of 5.50%. Even though there's no compounding, I believe the rate is a little lower than the APY since it's only a 9-month term. APY is a little confusing for terms under one year. It assumes the money will be compounded at the maturity of the sub-year term. You can review the details of the APY formula at this Investopedia article. For this 9-month CD, the periodic rate would be (5.46/100)*(9/12). The number of periods would be 12/9. By using that formula, I got an APY of 5.4969%.

I also asked about membership and savings/checking account questions. As one commenter noted, quirky fees and conditions may come and go. So it's best to speak to a Patelco rep directly (1-800-358-8228).
  • $20 membership is being waived. This is consistent with what I've been told a few times before. Also, I and others have reported not being charged this.
  • $3/month fee may be charged if your total deposits are under $150. This fee will also be waived if you have direct deposit or if you have Patelco's Free Checking Account. This fee is also mentioned on a Patelco page.
  • There's no hard credit inquiry for joining or opening deposit accounts. I was told it's only a soft pull. A hard pull will only be done for loan applications. Note, I just checked my credit report today, and I did only received a SOFT pull via Experian.

For more info for joining Patelco Credit Union and other Patelco details, please refer to this previous Patelco post.

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

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OCEAN (anonymous)   |     |   Comment #1
Hi banking guy.
I applied online,was approved for membership,and the cd promo.Planned on funding it tommorrow thru a local cu center as my cert's come due tommorrow.After a little negotiation my cu offered me 5.15% for 13 months.Ran all the calcs and having a problem on which one to jump on.Hard to say where rates are headed...what do you think?BTW:your site is the best and I really appreciate your hard work.ThANKS
glxpass (anonymous)   |     |   Comment #2
I notice that the web site no longer shows the 9-month CD, even on the specials list. The on-line application allows you to select a 9-month CD, though.

Do you know whether or not the CD is actually available today? Thanks for any information you might have concerning this.
Banking Guy
Banking Guy (anonymous)   |     |   Comment #3
You're right, the 9-month CD special is no longer listed on their rates table but it is still selectable in the online application when you log in. So I would assume what the CSR told me yesterday still holds in that you can apply online until 2:00pm PST (end of day for Patelco). I recommend contacting Patelco for the official info. Things can change quickly, and CSRs are not always right.
SVG (anonymous)   |     |   Comment #4

Banking Guy,

        Thanks for providing this information.


        I opened a 9 month certificate few minutes ago and selected ACH to fund it. It showed up on my 'Balances' screen and also on my 'Account Details' screen. I assume that APY of 5.50% will be given.

        I am with Patelco for a very very long time (so is my family) and we've never had any issues with Patelco.


Anonymous   |     |   Comment #5
Boy this news brings a "tear to the eye", figuratively speaking. It is sad to see this deal die. It's a high rate and the term does not place us at risk, as do so many of the long term CDs. I already have jumped in with everything I had available. Did it even before 1 January. My next CD will not mature until early in February. Had hoped this somehow might have survived. It was a foolish hope. But I certainly am grateful to have the advantage of this CD to the extent I have it. The people, the reps, at Patelco are very nice, too. That's not determinative, but it's a plus. I twice took advantage of the holidays, overnighting a check deposit to arrive on a Friday. Collected lots of sweet double interest. At New Years my check was not paid until the following WEDNESDAY!! Boy that was an unanticipated happy event. But Patelco was great about crediting my deposits without fail on day of receipt (two Fridays), with NO hassle. You just can't ask for better service. And their ten day funding policy gave me lots of cushion. My suggestion is to mail straight to Atwater if you choose the less expensive USPS Express Mail service as I did. They only pick up their Merced PO Box one time each day, in the morning. But the Patelco service center is actually IN Atwater, so your overnight letter can be delivered even if it arrives a little late. Atwater, a small PO, receives two incoming mails, one early morning and the second at roughly 1:00 PM PT. That's it. Patelco's presence in Merced is a PO box only. And the Merced PO will not deliver to Atwater, which is about ten miles distant. As always with the USPS, YMMV. But I had two positive outcomes in a row after doing my homework. Just a few hours remain. Good luck to all!!!
glxpass (anonymous)   |     |   Comment #6
Thanks, Banking Guy and SVG. I just confirmed that the CD is available today and must be applied for by 2pm. It must be funded today by ACH or mailing a check postmarked no later than today.

IMO, they really should have left the promotion on their web site, perhaps with a notice of the expiration date and time, but perhaps they wanted to avoid overfunding it.

I was on hold over 10 minutes, and was told their were a lot of calls, probably with the same exact question I had. :-)
glxpass (anonymous)   |     |   Comment #7
Sigh. How about "there were" instead of "their were." If only I were a better proofreader, or we could edit our posts here!
Anonymous   |     |   Comment #8
Whoop! I just got in! I didn't select the savings account and fund this account. Where does Patelco take the $1 to fund the savings account?

Yes, the maturity dates are all messed up, but I guess I will wait until next week to see if they get fixed.

Banking guy mentioned that Patelco won't send any paper certificate, only monthly statement. Will they send the signature card for me to sign and return???
Anonymous   |     |   Comment #9
The $1 is a gift from Patelco to you. I never received a signature card for my Patelco CD, opened a while back. AFAIK, there are no signature cards.
Anonymous   |     |   Comment #11
What do you mean by your ACH request is being returned?
I opened the member special and the 5.5% 9-month CD last Saturday and I just logged on to my bank and no money has been taken and no transaction is pending. I'm not sure how many days it will take.
Banking Guy
Banking Guy (anonymous)   |     |   Comment #12
So far my CDs show up okay online with the right balances at Patelco. I just checked this morning. I used my CapOne checking as the funding account. After I first applied at Patelco on Tuesday 1/1/08, the CD balances showed as $0 while the ACH transfers were pending. By Friday 1/4/08, the ACH transfers had completed, and the balances at Patelco showed the correct amounts.
Anonymous   |     |   Comment #13
After I signed up for MoneyLink2-4. I got an email stated that the following ACH transfer limits:

* Next Day to transfer funds (up to $2000 daily limit, $5000 monthly limit) within the next business day
* Standard to transfer funds (up to $5000 daily limit, $25000 monthly limit) within 3 business days
* Pay People to pay any third party (up to $500 daily limit, $1000 monthly limit)

Has anyone done ACH from other banks to pull from Patelco before? Does these limits apply to outside transfers as well?
RDH in Houston
RDH in Houston (anonymous)   |     |   Comment #14
On 1/4/08 I opened two Patelco checking accounts, one for me and one for my spouse, plus two $1,000.00 9 month CDs at 5.5%, all with ACH transfers from AmTrust. Tonight, I just checked our Patelco accounts and see that they are all zero (except the $1.00 in each Savings account) with notations that the money has been returned to AmTrust. Please note that these accounts were dated the day before 1/5/08. I have no idea what is going on, but I have sent a very nasty-gram to Patelco for doing this without notifying me.

Meanwhile, I have rolled over one IRA to Patelco and was planning to roll over two more. Unless I get some very good answers tomorrow when I call them, I am going to pull the one IRA (if I can without penalty) and cancel the other two. At my age (74). I don’t have to do business with people that annoy me.

Thanks for such a great blog. You are doing an outstanding job.
Anonymous   |     |   Comment #15
Has anybody else had any trouble with ACH transfers from Amtrust Direct ?

I have experienced gliches in the past and am afraid to use them now due to the hassle to correct them.

Thanks for all your work and great research.
Bozo (anonymous)   |     |   Comment #16
First they raise you up, then they shoot you down. Such is the experience with Patelco. Just after they announce moving to NCUA insurance, they torpedo the rates for "new money". Excuse me, but didn't I suggest that might occur? The teller winked at me on December 31 (when I opened my additional CD with money from Wachovia) as to whether the special rate might be ending soon.

OK, OK, Patelco is a nice organization, but the rates have to be competitive.

This Bozo just keeps shopping his money. Given brother Ben (Bernanke)'s approach to lowering interest rates and tanking the dollar, I might start looking for CDs in other countries. I hate to say that, but it's a fact.