- Clearpath Federal Credit Union offers a 12-month CD with a rate of 6.00% APY.
- They also have a 5.50% APY rate on a 18-month CD.
The Fine Print
- Minimum $5,000 to open
- Hard pull to open
- California only
- Must join first with a $5 donation
This is a bit better than what other CDs and savings accounts are offering.
Hat tip to reader Glenn
This expired sometime after 4/18
Is this a hard pull as noted above?
I can confirm that Northern California is now included. Rep sent me an email after confirming that the San Jose area is good to go (and emailed some forms). Approval came from Javier (the Director).
I applied for membership/account opening online, but that was the only online piece. I had to sign all prints and email them back with my DL.
Also submitted hand written applications/checks and mail them in to their Burbank address. No ACH for initial funding.
Painful week and a half, I’d say.
Magically, account opened, wires went thru and CD opened, all on the same day. They even let you give maturity instructions (e.g. balance goes back to checking).
Rep also confirmed that I can open multiple special CDs, no problem as long as promo is active.
If you don’t like to wait endlessly on phone, go for option 3 to dial the extension 5307.
This offer is still active. Multiple CDs are allowed. Just opened another 12 month CD today. I think, the 5307 extn is not manned/womanned. Long wait of an hour on the general line.
Amex funding and how much?
A very small CU with a B health rating and bad yelp reviews. I’ll probably pass even though it does sound enticing. I am also curious how they plan to stay solvent offering 6% on a CD and offering home loans at 5.5%. Sounds like somebody is in distress and struggles to stay liquid.
They’re actually in good shape. Check out https://www.ibanknet.com/scripts/callreports/getbank.aspx?ibnid=usa_80383
Their capital ratio is at 13%, which is really good. I have a feeling that they’re just trying to buy the market and get branding out and pulling a bait and switch type of deal. They’re also NCUA insured, and depending on how the account is structured, insured funds can be as high as $1M.
CDs are FDIC insured.
I bought a bunch of CDs at WaMu back in the day when they were about to fold. Got to keep the super high rates to term, not a bad deal.
That said brokered CDs aren’t much lower than 6% so I wouldn’t open an account just for this for short term.
I’m also not in California but even so.
Deposits are insured by NCUA for upto $250,000. So for most of us health of the CU should not matter I guess.
I’m not seeing anywhere close to 6% on their website. Is there a link?
What’s the risk of buying a CD from one of these smaller banks? I know they the CDs are FDIC insured but if they go under, how long to get your money back? I’m buying a few in my self administered TD Ameritrade account but choosing to buy from the likes of AE, JPM and Schwab. This way I defer taxes until I start withdrawing from the IRA.
I think these are relevant questions. I’ve mixed treasuries, treasury tracking ETFs, new issue brokered CDs, secondary market CDs, and CDs issued directly at the bank for the reason you refer to. That mixed risk profile has given me the ability to build a ladder and return profile that otherwise wouldn’t be possible in asset classes which should in theory all be government backed. Like you, I’ve put the question to myself as I’ve been doing this what the risk profile of every institution is. I haven’t raised my hand to knowingly put money into an entity I feared might be in imminent distress even in cases where I should in theory have a government backstop, but I have knowingly taken a higher yield in some smaller institutions which I don’t currently view as at-risk in order to increase my overall portfolio yield of government-protected return.
Brokered CDs are eligible for FDIC coverage as advertised by Fidelity, Vanguard, etc., but in reality there’s never been a stress on the system at scale to see the traps on that government backing when things really hit the fan (we’re not even close to that stress level with a few banks falling).
Not technically insured by FDIC. Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration (NCUA), a U.S. Government Agency of similar nature to FDIC. I suggest to read reviews: [www.google.com/maps/place/Clearpath+Federal+Credit+Unionfirstname.lastname@example.org,-117.2622822,17z/data=!4m8!3m7!1s0x80dca601f61756c7:0x166d7421562ee82d!8m2!3d33.9366415!4d-117.2622822!9m1!1b1!16s%2Fg%2F12hst78pn]
Hard pull to open?? thx
honestly, unless they are local, or you have a good longstanding relationship with them, it’s hard to lock up a good chunk of change with them, at least without some powerful good reviews.
the hard pull just seals the deal.
I got 4.9% brokered CD for 1 month from PACW (within FDIC limit.)
Look at your brokerage accounts. I saw some today at 4.95% APY for one month.
I’m confused why you feel that’s better than 6% for a year.
Or better than plenty of regular non-brokered savings accounts with no fixed time restrictions.
Its only one-month commitment. And you don’t have to open a new account. I am of course hoping stocks fall down a lot so keeping the funds near-liquid is a good idea.
Given the bank runs I am also predicting that the banks will continue to offer these one-month CDs for at least a few more months until they can fund raise/stabilize their deposits.
Why not do some T-Bills