If you are looking for the highest CD rates being offered today, you won’t find them at your local bank or at any major bank. Most of the highest CD rates are being offered at local credit unions. This makes it almost impossible for the average investor to get ahold of these rates. Reason being, you have to be a member of the credit union offering the rate. Most Credit Unions only allow specific people to join their union, whether it be school teachers, military personnel and family members or employers of major companies. Not only do you have to be a member but also most of the time you have to fulfill a list of requirements to be a member.

Melrose Credit Union has been one of the best credit unions to join who also consistently has the highest CD Rates offered. Here are the rates being offered through Melrose Credit Union:

  • 12 Month CD – 1.31% APY
  • 24 Month CD – 1.56% APY
  • 36 Month CD – 2.07% APY
  • 48 Month CD – 2.32% APY
  • 60 Month CD – 2.83% APY

These CD rates are higher than what you will find at any major bank. One year ago we posted these rates from Melrose, which you can see have dropped about one half of a percentage point.

(Reported August 2010)

  • 12 Month CD Rate – 1.76% APY
  • 2 Year CD Rate – 2.02% APY
  • 3 Year CD Rate – 2.52% APY
  • 5 Year CD Rate – 3.29% APY

To get into the Melrose Credit Union you have to fill out the registration form and pay $1. Once accepted you can then deposit the minimum of $5,000 to start earning the highest rates being offered today. Your earning will be compounded quarterly and if you decide to withdraw your money early, you will end up paying an early withdrawal penalty.

There are other credit unions offering decent CD rates but some will be harder to get into. Some have higher requirements, such as having a specific number of transactions each month using a debit card or having a direct deposit set up to your account. If you do not mind these little hassles then it’s probably better to go with a Credit Union than with a bank for investing in CDs right now. Melrose is also NCUA insured (this is the Credit Union’s FDIC insurance).

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