It’s called the 5-5-5 promotion and it’s being offered through People’s Trust Financial Credit Union.
Generally with credit unions, either you’re eligible to join or not, and there’s not much middle ground. However People’s Trust FCU out of Houston, Texas, is allowing anyone to join with a mere $5.00 donation to their foundation (no, this is not part of the 5-5-5 promotion – it just happens to be a coincidence).
Recently we did a report on the best money market accounts in Texas and BankVibe reader Doug posted this amazing deal in the comment section. Thanks Doug!
Here’s how it works:
You 5-5-5 certificate of deposit is a 5 month CD with a 5 percent annual percentage yield requiring a minimum deposit of $500 and a maximum deposit of $5,000. You can make deposits to the account freely up to the $5,000 mark. This yield is almost double the national average for 12 month CD’s, to put this offer in further perspective.
The only real downside to this promotion is that you can only invest $5000 and, depending on where you live, you may not be able to reach a physical branch.
Even though the maximum deposit allowance is relatively low it is still a great product for first time savers. We’ve covered a number of promotional deposit products with fantastic APY’s such as this in the past and their maximum deposits are generally much lower – usually around $1,000.
People’s Trust Credit Union is a rather small institution – just the 33rd largest in Texas by member and asset size. They were established in 1935 and today control roughly $440 million in consumer deposits and service almost $180 million in loans. They have 80 employees and almost 40,000 members.
CD and savings rates should continue to fall as the FED tinkers with key rates (by tinker, we mean continue to lower). And although we think this is a fantastic interest rate associate with this deposit promotion, we would suggest considering a longer term deposit as well to hedge against the continuation of falling rates.
Contact People’s Trust Credit Union at (800-321-2411) or www.peoplestrustfcu.org