Here’s a pretty stunning new 60-month CD offer: A California credit union will pay savers four-tenths of a percentage point more in interest than the leading nationally available bank deal.
In April, Patelco Credit Union raised its 5-year CD rate by 25 basis points to 2.75 percent APY. A basis point is one-hundredth of a percentage point.
This account is widely available to Northern California residents and anyone who works for one of more than 1,100 companies, including Walgreens and AT&T.
The new deal is among the best available to savers looking for long-term certificates of deposit. It may appeal to anyone with at least $1,000 to invest.
Patelco is one of many financial institutions that raised interest rates after the Fed rate hike in March. Compare this offer with the best CD rates. Then calculate how much interest you’ll earn when your CD matures.
How to join
To become a member you must:
- Be the relative or roommate of a current Patelco member.
- Live or routinely worship, work or take classes in one of 10 counties or 12 cities in California.
- Attend California State University East Bay, the University of California Berkeley or San Francisco State University as a part-time or full-time student.
- Be a member of the California State University East Bay or the San Francisco State University Alumni Associations.
- Be a civilian employee for the U.S. government who works or is headquartered in San Francisco.
- Be the surviving spouse or minor child of a deceased pensioner or employee who qualifies for membership.
- Be the employee or pensioner of the companies, associations, trade groups chambers of commerce or federal government agencies served by the credit union. You can check eligibility here.
Patelco Credit Union has 36 full-service branches in Northern California and more than 300,000 members across the country. It’s one of the largest credit unions in the U.S., and all savings are federally insured.
Opening a 5-year CD
You can open an account online, in person or over the phone. In order to apply, you’ll need a government-issued ID and a Social Security number.
Making an initial deposit is easy. You can transfer money from another account, visit a branch or mail in a cashier’s check or money order.
Generally, you can fund a 5-year CD at Patelco with up to $250,000. To make a larger deposit, you’ll need permission from the credit union. Keep in mind that you’ll lose part of your interest if you make a withdrawal before the CD’s maturity date.
The early withdrawal penalty is up to 180 days of dividends.
Can’t wait five years to access your savings? Try a savings account or a money market account instead.