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.

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

didYOUsearch said: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.

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: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?

Thanks

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.

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

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

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.

masamfigblu said: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.