You may already be aware that opening a certificate of deposit account in credit unions may significantly yield higher interest rates than conventional banks. This is because both differ in their offering policies. Banks generally take higher risks in the money market game, and this is why they tend to hold on more to your money. Credit unions are generally smaller, and they are only able to use your money for other members of the union as well. Thus, they generate higher interest rates.
Ahead of Everyone
If you’re thinking about opening a new certificate of deposit account in a credit union, you might as well go for the institution that offers competitive rates. One such lending institution you can go to is Montauk Credit Union. Currently, they offer a 1.00% growth on your 1-year CD term.
As with other CD services, you can get to choose the type of CD offering. This means you can go either short-term, such as 12 months, or long-term leading up to 7 years. The APY rates for each term, is of course variable.
An 18-month CD yields 1.25% APY, while for a 2-year CD, you get 1.50% APY. For the 3-year, 4-year, and 5-year agreement, you have the following rates in respective order: 1.75%, 2.25%, and 2.50%. Its highest rate offering is at 2.75%, which comes upon opening a 7-year CD account.
Although Montauk Credit Union currently does not lead the CD rates pack, its rates are competitive nonetheless. If we take a look at Melrose Credit Union’s 1-year CD, it has an APY of 1.10%. Another well-credited company is First Jersey Credit Union’s 1.005% APY for the same term. Clearly, Montauk isn’t far behind, and you can still get high return for your money.
To start your account, it is important to maintain a minimum balance and initial deposit of $50,000. Allow your money to grow for the specified period of time, and you’ll be getting more than what you’ve paid for.
Once you decide to open an account with Montauk, you are first assigned a savings account. Membership is for free, but you will be required an initial deposit of $25 in your savings account. After this, you can then proceed to opening your CD account.
About Montauk Credit Union
Montauk Credit Union is primarily base din New York, but it offers membership to anyone, with its “open charter” policy. This allows them to greatly expand their services, giving their consumers more value and greater access when it comes to growing their money.