[Update 2013 - This 12 month promotional CD by Patelco Credit Union is still available and yielding 5 percent on deposits of up to $1,000. This is a new member promotion only. Current members are not eligible. See all Patelco Credit Unions deposit rates and products here.]
Patelco’s Promotional Offer from Archive:
Patelco Credit Union is offering new customers a 12 month CD yielding 7% for deposits of $1,000. For those of you that want to stash away smaller sums of money in a high interest, FDIC insured investment this credit union may be the way to go. They don’t go into too much detail about the CD offer on their website, but it appears this offer could be somewhat of a teaser (the rest of their rates are very average to sub par). Behind this promotional CD offer their next best rate is a 12-23 month IRA CD yielding 3.04%.
Here are the terms for obtaining the 12 month CD:
This rate is available for a limited time. Funds deposited to this account must come from an institution other than Patelco. Minimum deposit $1,000, maximum deposit $1,000. Account available to new members only-must open a new membership. One certificate per member. Not available as an IRA certificate.
Keep in mind that by opening a new membership you will likely be required to open another account with them in conjunction with the deposit. Usually when credit unions offer these absurdly high rates they are also companied with low maximum deposit amounts and requirements specifying the opening of additional accounts.
Patelco is headquartered in San Francisco, CA and was originally started to serve the financial needs of the employees of Pacific Telephone & Telegraph Company. They were originally founded in 1936 with just $500.
Today they have over 270,000 members and control roughly $3.6 billion in assets. Like most credit unions, Patelco CU is a not for profit institution that is owned by their members. Profits derived from business operations are put back into their products in the form of higher savings rates and lower loan rates.
In general we’ve seen solid reviews from Patelco CU. Occasionally their customers will let us know of bad experiences but they are generally isolated incidents and the credit union has a very responsive customer service support system. You can contact them at (800) 358-8228.