Patelco Credit Union’s New Member Certificate: 7.0% APY!
Warning: The rates featured on this page are likely outdated. Visit our CD Rates Center for updated rates and special offers.
Patelco Credit Union out of San Francisco, California has a very enticing offer for prospective customers. Currently, if you are new to their credit union, they have a 12 month CD (certificate of deposit) yielding an astounding 7.00% APY! Don’t get too excited over this offer if you had planned on investing in a 12 month jumbo CD as this offer has a $1,000 maximum (and minimum) deposit.
Patelco Credit Union’s 12 month new member CD terms and conditions:
- 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.
If you are looking to invest a larger chunk of money (>$1,000) in an FDIC insured investment, then I wouldn’t count on Patelco Credit Union for any great rates. Other than their promotional 12 month new member certificate, their rates are fairly underwhelming. The next best CD rate they offer is a 60 month CD with an APY of 2.55%.
June 8th, 2009 at 10:01 pm
My family bought two of these CDs in May 2008 (curiosity), matured in May 2009, each yielded $1,069 and odd-change. I thought it was a FINE showing for a thousand dollar investment over one year! NO regrets! Thank you, Patelco CU! Had the rollover rates been a bit more attractive, maybe in the 3.00% APY range like Melrose CU, Patelco would still have our money. We need to use our noses to sniff things out and find the best.
June 8th, 2009 at 10:39 pm
Farmer Frank,
Did they try to roll over your account into another 1 year CD with a lower rate?
June 9th, 2009 at 6:29 am
Well there’s always a catch
But an extra $40 with the 7% yield is certainly worth it to open a CD at patelco, vs a comparable 1 year CD at 2.5%-3%.
June 9th, 2009 at 10:00 pm
To Seth: No, they didn’t. Their 1-year rollover rates WERE much lower (but had always been), so it seemed in my family’s best interest to redeem the CDs after one year and look elsewhere. We received notices (mail) several weeks before maturity reminding us of the approaching date. Several days after maturity I contacted them (within their grace period) and asked to redeem the CDs. No arguments, persuasion to the contrary, promotional pitches of other products, etc. In less than a week our checks arrived for the redemption amounts of the CDs. And…we’re still on good terms! We couldn’t be more pleased.
To Blogging Banks: If there was a catch, I never found it. I must summarize their dealings with my family as honest, honorable and open. I believe it (7%) is their way of attracting new customers, many of whom will choose to stay on board for the longer term. The extra $40 is just that; the CD is limited to new customers only, with a $1,000 investment, no MORE and no LESS. How can it hurt to park a grand at Patelco for a year? As today’s young folks would say, ‘It’s a no-brainer.’ By the way, folks, they have a great program for younger (children) savers that pays 8%, but I’m not up on the details. Check their web site for the minutiae.
June 9th, 2009 at 11:07 pm
CORRECTION: I just went to Patelco’s web site and searched the rate tables for reference to the children’s savings program, but found no mention of it. Perhaps they phased it out without much fanfare. My sincerest apologies to the readers for what now appears to be misinformation.
June 10th, 2009 at 10:14 am
I wouldn’t hesitate to pull the trigger on this CD if they had something better than a 1.50% 12 month CD to roll it into after maturity IMO
June 10th, 2009 at 10:49 pm
To Ian:
You can’t in any way go wrong putting a thousand dollars into a 1-year CD at Patelco at 7% interest. Why pass on the 7% based on speculation of what their rates will be a year from now? Remember, $1,000; no more and no less, so we aren’t talking about a great deal of money here. And, what does a 1.50% present day rollover interest rate have to do with a 7% rate, for one year, starting now?
In 12 months you may indeed see much higher interest rates (and can roll it over then). Maybe they’ll be less than 1% and you’ll be glad you spent a year earning 7%! At present, they aren’t promoting rollover rates, only today’s 7% rate, which is a humdinger in my book! In my judgment, future rollover rates aren’t an issue when deciding what to buy (or not buy) today. What matters is the 7%-for-a-year (starting now). When next year BECOMES “today” you can make the decision then. Happy investing!
June 11th, 2009 at 3:48 pm
Thanks for your input FarmerFrank! As always, your investment experience adds tremendous value to our site!