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rated:
http://www.patelco.org/accounts/treasury.aspx

This an Interesting account. Unlike most liquid accts where rates can change on the banks whim, this rate will be known in the future, as it is based on the avg of the previous 12 weeks auction rate of 6 month t bill

(FW 6 month t bill thread here)

Also interesting is that it appears to be liquid, yet they want to know 6 months in advance of any withdrawals. BUT you can also scedhule monthly payments from the acct. You may be able to schedule a "monthly payment" of 50-100% of acct balance , then redeposit, for max liquidity.

$25k min to open unless its an IRA (only $500 to open IRA).

RATE HISTORY:
1/1 4.81%
4/1 5.20%
7/1 5.56%

current rates
http://www.patelco.org/rates/savings_all_printable.aspx?printable=y

Patelco is not FDIC or NCUA insured (they have only private share insurance to $250,000). This may concern some ppl. They are a huge credit Union and have been in business for decades.


Member Summary
Most Recent Posts
are there any min balance requirements? don't see any t&c info for the treasury income account.

bk2 (Oct. 03, 2006 @ 12:37a) |

25k min for regular account, only $500 for IRA

SUCKISSTAPLES (Oct. 03, 2006 @ 10:17a) |

bump..rate down slightly to 5.64

SUCKISSTAPLES (Dec. 19, 2006 @ 8:53a) |

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New patelco offer - didn't put it in the CD thread as they're not ncua insured.

Nice offer though - www.patelco.org.


5% 12-Month Bump-Up Certificate
Start high and "bump" even higher.

Put yourself in the driver's seat in this rising interest rate environment by opening one of our new 12-Month Bump-Up Certificates. It's like our traditional certificate with one important difference: not only do you start with a great rate, but you can bump up the rate one time if interest rates rise—with no fee or change in the maturity date!

Features

* Open with as little as $1,000**
* Earn monthly dividends
* Plan ahead and start the certificate as a Traditional or Roth IRA, or Coverdell Education Savings Account
* Limited time offer

New updated rates on the Income account, now paying 4.81%!



didYOUsearch said: [Q]http://www.patelco.org/accounts/treasury.aspx
Also interesting is that it appears to be liquid, yet they want to know 6 months in advance of any withdrawals. BUT you can also scedhule monthly payments from the acct. Wonder if you can schedule a monthly payment of 50-100% of acct balance , then redeposit, for max liquidity. Wonder too if that would reduce interest computation.

I have this account among others for short-term funds for a while now and have been treating it like a 6 mos CD. The reason is that you can only schedule monthly payments from the account for 'Patelco loan payments' only not for anything else so it's not liquid in shorter term than 6 months; however, you can schedule withdrawals of the entire balance every 6 months and redeposit or not based on current 6 months CD rates. So far it's been fairly competitive and at times better than most 6 months CDs. You also need to setup a Patelco saving or checking account so that an ACH capable external account can withdraw the fund directly into a high yield account if the rate becomes uncompetitive since apparently there's no ACH capability out of the Treasury Income account.

thanks for posting your experience...

do you know what happens if you absolutely MUST have the cash immediately? can you close the acct with an interest penalty? or will they simply not let you touch your money for six months?

Thats interesting that the only monthly deductions you can setup are to pay patelco loans. None of their literature mentions that.

DYS,
You mentioned this in another thread

http://www.fatwallet.com/forums/messageview.php?catid=52&threadid=469490&highlight_key=y&keyword1=patelco

didYOUsearch said: [Q]Dont know if this will work yet, will visit Patelco to see if this arbitrage opportunity will work:

patelcos treasury income account is paying 4.8%, likely to increase, and can be used as collateral for loans
http://www.fatwallet.com/t/52/562761/

patelcos savings secured loan is 3%.
http://www.patelco.org/rates/loan_rates.aspx

make 1.8%+ for doing nothing

whats particularly nice is you can setup monthly deductions from the treasury income acct to pay the loan payment.

I am a Patelco member and will be happy to investigate this for others, tell me what questions I should ask.


lenders LOVE seeing that cash in the bank.

What looks bad: lots of loans and no cash. What looks good: lots of loans AND lots of cash. Every savvy investor has loans. Using other peoples money to make money is how its done.


Were you able to verify that the treasury account qualified for the secured loan?


nope

Thanks <img src="i/expressions/face-icon-small-smile.gif" border=0>

didYOUsearch said: [Q]thanks for posting your experience...

do you know what happens if you absolutely MUST have the cash immediately? can you close the acct with an interest penalty? or will they simply not let you touch your money for six months?

Thats interesting that the only monthly deductions you can setup are to pay patelco loans. None of their literature mentions that.
The penalty for early withdrawal is 90 days of interest. And yes, I thought it was somewhat misleading the way the monthly payment was stated.

hmm, i got different information when I opened my account yesterday...i AM able to schedule monthly withdrawals into my share account (savings account) - i can funnel the money right back into the account if I want.

I also setup an immediate 6 month WD notice - at the 6 month point, I can choose to WD some, all , or none of the $$...seems pretty flexible.

Interesting. Am probably either not asking the right question or just perhaps getting a different set of CSRs. Asked again and was told again that monthly payment into any kind of internal or external debit account is not possible without the 6 months notice even asked specifically about the tier saving account which what I have. Is this the same as the 'share saving account'? Would have put more money into the Treasury Income acct. if this is the case... Wondering what's going on, would appreciate any help trying to resolve this.

of course i havent received my 1st payment yet (scheduled for 2/1) but they told me they will happen every month.

they will not deposit into external acct, only another patelco acct. so i had $5000 monthly payments scheduled to be deposited into my core share account, i think its called tiered savings or whatever. i was told they can be deposited into any type of patelco acct. seems you can theoretically schedule monthly payments of 25-50% or more, basically getting around the 6 month wd restriction and being able to wd all of it in 2 months, and put it back if you dont need it.

i also scheduled the 6 month wd notice, so on 7/11 i have the option of wd some all or none of the remaining money.

i can also setup another treasury income acct , with a different acct suffix, to have another wd date available

try another rep. dont ask if you "can" do it, just say you want to schedule monthly payments into one of your other patelco accounts per the acct terms

Had this account a few years ago. Never tried the monthly transfer option. But the cool thing was that you could send in a 6 mth notice of withdrawal to set a withdraw date, deposit more funds anytime, and still take out the entire balance when the day comes. So effectively, it acts as a less-than-6 mth CD for these new deposits, with a very high interest rate.

kind of off topic, but wondered if they're owned by indians

indi3 said: [Q]kind of off topic, but wondered if they're owned by indians
PAcific TELecom, or something like that.

Started as a company focused credit union for the AT&T unit - Pacific Telephone & Telegraph Company. Rather obvious where their name comes from.

Blurb from their website:
San Francisco-based Patelco Credit Union is one of the largest and most successful credit unions in the country. An industry leader in convenience and innovation, Patelco delivers service through its 37 branches and nationwide network of ATMs and service centers.
Chartered in 1936 to serve the employees of Pacific Telephone and Telegraph Company, Patelco remained a telephone company credit union until 1983, at which time it expanded its field of membership to companies within the telecommunications and high technology industries, and professional service organizations.
At the time of its chartering, Patelco had just five members with assets of $500. Today, Patelco has over 209,000 members with assets exceeding $3.5 billion.

This subject is quite timely, as I was looking at Patelco last night and noticed that they were not NCUA insured. They are privately insured. Is this something to be concerned about? I was intrigued by the Treasury Income account and was wondering how that worked and it seems to be ok from the comments on this thread. One other curiosity, is the "Patelco.ORG" and "Patelco.COM" one and the same. The websites are identical, at least as far as I could tell. I first connected via Google and got the "Patelco.ORG" and then, opened new browser and out of habit typed "Patelco" and Ctrl+enter and got "Patelco.COM". Strange.

masamfigblu said: [Q]is the "Patelco.ORG" and "Patelco.COM" one and the same..yes they are, just like penfed.org and penfed.com

whether Private Insurance is acceptable to you, or you demand NCUA insurance is a decision you will need to make.

Thank you. It probably is all right with the private insurance, since Patelco has been around for decades. They probably know what they are doing. Just had a quick look at their website again and noticed that they now have a 5% twelve month bump up rate with minimun $1,000.00 coming from another financial institution. Sounds like a good "test" account to see if we like them and how is their customer service.

While trying to fill out the online application, found that one must log on first. And in order to log on, one must be a member. So, went to the member application section and found that they charge $5 for a savings account (which is ok). But then, there is add'l $5 for checking and $20 for membership fee. Does that mean we have to spend $40 to do business with them. Do they charge for opening the other accounts?

they dont "charge" to open accts, those are the min balances.

They are not a good option if you plan on just having some small balance accounts or plan on doing everything online or by phone, as its very difficult to reach a CSR if you have problems.

Oh, so it is best to go in to one of their branches and open an account. So now it is a toss up as to whether to open their Treasury account for six months with $25,000, or the 5% one year for $1,000min as a trial run. Thanks for the info.

treasury account cannot be used as collateral for patelco loans

mshen11 said: [Q]treasury account cannot be used as collateral for patelco loans?? it most certainly can. in fact i was trying to get the 3% savings secured loan, and make 1.8%+ from arbitrage, but they said this account would be linked to the higher certificare-secured rate

<<
?? it most certainly can. in fact i was trying to get the 3% savings secured loan, and make 1.8%+ from arbitrage, but they said this account would be linked to the higher certificare-secured rate
>>

Dear Member,

No, only funds deposit to savings account can be used.

Thank you for contacting Patelco Credit Union.
----------------------------------------------
Sam L
Internet Loan Specialist
Patelco Credit Union



--Original Message--
From: xxx@xxx.com
Date: 1/27/2006 7:05:48 PM
To: ibranch@patelco.org
Subject: PC-24 General E-mail

Account: xxx
Name: xxxxx
Comments:
<<A Savings-secured loan may be made for amounts up to 100% of available funds in a regular Patelco share account. Terms up to 10 years are available. Funds in checking, money market, IRA, and certain other accounts may not be used as collateral.>>

can the treasury account be considered as collateral for the secure loan?

as i said above, this acct doesnt qualify for the 3% "savings secured loan" rate. it can be used as collateral for other patelco loans, including certificate secured loans (which is at a much higher rate)

Looks like you asked the rep about the savings secured loan, and he told you only savings accounts qualify for the 3% savings secured rate, which is correct.

update: I did receive my first "payment" into my share acct exactly as stated below, so you can easily get around the "6 month rule' simply by specifying a monthly payment into your share acct of 25%-50% or more. if you need the money, you get it w/o penalty. if you dont need the money, put it right back into the treasury income acct


didYOUsearch said: [Q]of course i havent received my 1st payment yet (scheduled for 2/1) but they told me they will happen every month.

they will not deposit into external acct, only another patelco acct. so i had $5000 monthly payments scheduled to be deposited into my core share account, i think its called tiered savings or whatever. i was told they can be deposited into any type of patelco acct. seems you can theoretically schedule monthly payments of 25-50% or more, basically getting around the 6 month wd restriction and being able to wd all of it in 2 months, and put it back if you dont need it.\\

DYS - I would be surprised if this account pays tax-advantaged dividends in contrast to buying the T-Bills yourself directly through treasurydirect.gov or a broker. Remember that T-Bills are state/local tax free. Still you might call and confirm this with PatelCo.

bump..rate update to 5.2

didYOUsearch said: [Q]as i said above, this acct doesnt qualify for the 3% "savings secured loan" rate. it can be used as collateral for other patelco loans, including certificate secured loans (which is at a much higher rate)

Looks like you asked the rep about the savings secured loan, and he told you only savings accounts qualify for the 3% savings secured rate, which is correct.

Can you please explain a little more about these certificate secured loans compared to savings secured loans? I'm still a little confused how to make this "free" 1.8%. Thanks.

youre confused bc you did not bother to read this thread at all, including the snippet you quoted. I clearly stated its not possible to use this arbitrage strategy.

they will not link this account to the savings secured loan rates (which used to be a fixed 3%), only the certificate secured loan rates, which are higher than what this account pays.

the savings secured loan rates have increased to 5% as well.

DYS:
Could you clarify the process to request the transfer to the tiered saving acct as I'm in the process of establishing the Treasury Income account. Do you request this after the accounts are opened? Do you specify the 50% monthly or just month by month and is this capability available on-line once you got your accounts or has to be requested via phone? If the 50% transfer results in the Treasury Income Account below 25K before one could replenish it the next day, is that O.K?
Sorry if this is covered before but I couldn't see where from reading previous posts and I'm not getting alot of help from CSRs for some reasons as they seem to be clueless about this capability???!!!! Thanks.

didYOUsearch said: [Q]they dont "charge" to open accts, those are the min balances.

They are not a good option if you plan on just having some small balance accounts or plan on doing everything online or by phone, as its very difficult to reach a CSR if you have problems.

I have had good CSR turnaround times so far. Had to wait on hold for 4-5mins MAX ever. They were not very good at solving complex problems but usual stuff is no biggie..
you can also EMAIL and they respond next day and thats pretty good.

I think in-person service in branches is slow as they have only 3-4 CSR there.

they do come out with good rate promos for CDs a lot! and are getting very creative now.. i notice

stfs said: [Q]DYS:
Could you clarify the process to request the transfer to the tiered saving acct as I'm in the process of establishing the Treasury Income account. Do you request this after the accounts are opened? Do you specify the 50% monthly or just month by month and is this capability available on-line once you got your accounts or has to be requested via phone? If the 50% transfer results in the Treasury Income Account below 25K before one could replenish it the next day, is that O.K?
Sorry if this is covered before but I couldn't see where from reading previous posts and I'm not getting alot of help from CSRs for some reasons as they seem to be clueless about this capability???!!!! Thanks.I did everything in the branch the day I opened the account (setup the monthly payment request, setup the 6 month full withdrawal notice, etc). I recommend you do that too to avoid miscommunication or confusion.

I have no idea what they do if you request a 50% monthly payment and that drops your balance below the $25k...if thats a problem, make your monthly payment smaller.

Once they transfer funds from the Treasury Income acct to another one of your accounts (checking, savings, etc) you CANNOT move the money back into the Treasury Income account online. You might be able to do it over the phone. I do it in person.

I'm a much more "traditional" kind of person when it comes to banking. I like to establish a relationship with the bank employees, have them get to know my face, see my deposits, etc.

This would be great but I've been trying to join Patelco for some time now.
Only way I could do so is join the California Association for Older Americans.
That association will not return my phone calls or email.

Bluezy said: [Q]This would be great but I've been trying to join Patelco for some time now.
Only way I could do so is join the California Association for Older Americans.
That association will not return my phone calls or email.i think patelco can handle that for you, its basically a 'bs' organization just to qualify ppl for cu membership

didYOUsearch said: [Q]Bluezy said: [Q]This would be great but I've been trying to join Patelco for some time now.
Only way I could do so is join the California Association for Older Americans.
That association will not return my phone calls or email.i think patelco can handle that for you, its basically a 'bs' organization just to qualify ppl for cu membership

What I did was to ask Patelco to send me applications both for Patelco accounts and the CA Association for Older Americans. I mailed back to Patelco both applications and as DYS mentioned Patelco can handle it all for you. BTW, I finally found a rep who know about the monthly transfer so I'm finally getting that set up (couldn't come to the branch since I don't live near one). 1st transfer should happen next Monday, going to see if I could transfer it back over the phone if not then I already have it set up to transfer it out to a 4% checking account and then send a check to deposit the money back to Treasury Income.
Also regarding the question from another poster on what happens if the transfer causes the balance to fall below 25K, the answer from the rep that I talked to is that the transfer that causes it would not occur. She also emphasized that you need to call when the 6 month withdrawal comes due since Patelco will not execute the transaction automatically. I called to make the withdrawal the last time but wonder now if I have the option to just ask to 'renew' it if I want to..all in all an interesting account.

i have succesfully transfered the "monthly payment" money back into this account via PHONE, speaking to rep.

Rep was actually surprised you could schedule monthly payments into share account. Seems not everyone at Patelco understands this account (not surprising given that its so unusual).

Patelco is apparently having problems with online system access today but it is operational now. Anyone who has been w/ Patelco for awhile experiencing this before? DYS, did you have the same problem contacting CSR to move the monthly withdrawal fund back to the Treasury Income account assumming that you still have the same transaction scheduled with your accounts? Anyone with concerns regarding this type of IT gliche for a financial organization or am I being overly paranoid?

Skipping 10 Messages...
bump..rate down slightly to 5.64



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