As stock portfolios get whiplashed by tariff threats, three Southern California credit unions are offering a dash of financial salve for those seeking a safe and modestly lucrative return on their savings.
The trio offers interest rates of 6%-plus on short-term certificates of deposit, which is an eye-catching number in a world where getting anything around 4% is a good deal for federally insured savings.
The catch? Well, there are some quirky rules to be followed in order to earn these lofty returns. Plus, the maximum deposit sizes are relatively modest.
So why the high yields? Well, special rates are one way for credit unions to draw in new business. They know the big banks are nowhere as generous.
But remember, credit unions have membership requirements often tied to where you live, work or pray – so not everyone qualifies. Small membership fees or “donations” may be charged.
Here are the three deals:
California Coastal Credit Union: The San Diego-based institution (877-495-1600) has a Celebration Certificate Account, paying a 9.5% annual rate for five months on savings from $500 to $3,000. Consumers in San Diego, Riverside, Orange, Los Angeles, Ventura, Imperial or San Bernardino counties can apply. To qualify, the saver has to have an active California Coastal checking account, keep $5,000 in another savings account, or take out a consumer loan.
Credit Union of Southern California: The Anaheim-based institution (866-287-6225) offers a 7% annual CD rate for seven months for new members who live, work, attend school or have religious services in Los Angeles, Orange, Riverside or San Bernardino counties. It’s good for savings between $1,000 and $5,000.
Financial Partners Credit Union: The Downey-based institution (800-950-7328) offers a 6% annual CD rate for eight months for new members who live in Los Angeles, Orange, Riverside, or San Diego counties – and South San Francisco or Alameda. It’s good for savings between $1,000 and $5,000.
If you’ve got a larger sum to invest – and want the bonus rate for longer – another local credit union has a noteworthy deal.
Clearpath Credit Union offers a 5% annual rate for 13 months on certificates of $5,000 or more. The North Hollywood-based institution (800-433-7328) offers membership to workers at a lengthy collection of local businesses. If you’re not employed at those places, a $5 donation to the credit union’s charity gets you in.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
Originally Published:
