bank rates

Melrose Credit Union Bumps Its CD Rates

The New York credit union increased rates by a tenth of a percentage pointThis is not an electronic misprint.

Melrose Credit Union has raised its CD rates.

We know it’s kind of silly to get giddy over a rate increase, but good news for savers has been hard to come by lately.

The increase of about a tenth of a percentage point in all terms makes Melrose’s CD rates competitive once again.

In fact, the New York credit union now beats the best nationally available deals on 36- and 60-month CDs on our CD Rates Leaderboard.

With a $5,000 minimum deposit, Melrose Credit Union (www.melrosecu.org) pays:

  • 1.15% APY on 12-month CDs.
  • 1.41% APY on 24-month CDs.
  • 1.91% APY on 36-month CDs.
  • 2.68% APY on 60-month CDs.

Melrose, which used to predictably change its certificate of deposit rates once every three months, has now tinkered with rates twice in August — cutting rates once before this increase.

Its rates are still down about a quarter point from the beginning of 2011.

The increase also makes Melrose more competitive with other credit unions that have nationally available deals.

Here’s a look at the best nationally available credit union CD rates:

  • 60-month CDs: University Federal Credit Union (www.ufcu.org) pays 2.83% APY with a $2,500 minimum deposit.
  • 36-month CDs: University Federal Credit Union pays 2.08% APY.
  • 24-month CDs: Alliant Credit Union (www.alliantcreditunion.org) pays 1.70% APY with a $25,000 minimum deposit and 1.60% APY with a $1,000 minimum deposit.
  • 12-month CDs: Connexus Credit Union (www.connexuscu.org) pays 1.50% APY with a $10,000 minimum deposit.
  • 6-month CDs: Connexus Credit Union pays 1.25% APY.

Credit unions often charge joining fees and place other restrictions on membership that could cut your earning power.

Anyone can join Melrose Credit Union, regardless of where they live or work by paying a $1 membership fee and depositing $25 in a savings account.

Compare these returns with the best CD rates from scores of banks in our database.

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Comments (8)
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8 Existing Comments
  1. Jim S. said:
    on September 1st at 08:43 am

    Hey, maybe the inflows of new money into some of these institutions are drying up! All it would take is a bunch of big CD’s to mature and no new money coming in to start triggering some promotional rates or rate increases! I know, wishful thinking, but one can always hope!

  2. Mike at Bankaholic said:
    on September 1st at 09:11 am

    University Federal Credit Union has cut its rates as of Sept. 1, 2011. It’s now paying 2.25% APY on its 60-month CD and 1.75% APY on its 36-month CD.

  3. Joe George said:
    on September 1st at 10:36 am

    Jim, actually thats not wishful thinking. Right now, banks generally have more cash than they know what to do with; much of it gets arbitraged against short-term instruments that yield little spread over the pathetic rates they are paying to depositors. However, there are some small “niche” banks that are out there making loans and need deposits to fund those loans. These are the banks that are paying the relatively higher deposit rates. Melrose recently lowered their rates, possibly because they saw little need right now for additional funds. However, they may have lowered the rates a bit too much, as likely evidenced by some depositors not renewing their CDs at maturity. Therefore, they tweaked the rates back up a little to try and get some equilibrium.

  4. Joe George said:
    on September 1st at 10:44 am

    One thing to look out for in the coming months. Many banks in the NE may experience a surge in home equity lending by borrowers needing to fund repairs from Hurricane Irene, that are not covered by insurance. Smaller institutions that are not highly leveraged, such as Melrose FCU (NY) and Hudson City Savings (NJ) may increase deposit rates to attract new money. Be on the lookout…not a promise but a perhaps a good possibility!

  5. Jim S. said:
    on September 2nd at 06:04 am

    Joe, I like your thinking. OK everyone, do not renew your CD’s for a few months!!! I need rates to increase before my CD ladder has me buy this Nov. ; P

  6. Kathy at Bankaholic said:
    on September 21st at 09:20 am

    You can still get these rates from Melrose, Alliant and Connexus.

  7. Kathy at Bankaholic said:
    on September 26th at 10:32 am

    These rates are still available from Melrose, Alliant and Connexus.

  8. Kathy at Bankaholic said:
    on October 13th at 12:01 pm

    The rates from Melrose and Alliant are the only ones still available.