Expired - SECU (Maryland) 7-month CD with an effective yield of approx. 9.36%

SECU (Maryland) credit union is offering a CD promotion similar to the one they had last year. This time they’re calling it the Giving Thanks CD. It has a 7 month term with a 5.00% APY. There is an additional bonus dividend of 2.50% of the initial deposit which they will credit directly into the CD upon opening. This will result in an effective yield of approximately 9.36%. The credit union has a limited field of membership but does allow out of state applicants. Membership requires at least $10 in the share account. If you can finagle membership to SECU, this is a great deal.

Example: $100K CD will earn approximately $5460 after 7 months
($2960 interest + $2500 bonus = $5460)

- ‘new’money required
- can only be opened in branch or by mail (applications can be downloaded from website)
- initial funding by check only
- POD available
- $2K minimum
- $200K maximum
- interest compounded and credited quarterly
- must elect interest payment options at account opening
- seven day grace period
- interest will not be paid on funds withdrawn during grace period
- three months interest early withdrawal penalty
- NCUA insured
- promotion is scheduled for September 29, 2007 – November 30, 2007
-“Offer subject to availability and may be withdrawn at any time.”

secumd.org
field of membership
last year's thread

Just a suggestion, but you may want to add Maryland area to your title.

largeeyes said: Just a suggestion, but you may want to add Maryland area to your title.
Okay.

I don't get it. I thought all CD's were for a fixed rate for a fixed deposit amount. Why don't they just post the effective yield of the CD with interest reinvested?

nice, my dad is University of Maryland alumni, so I can join =)

mnsweeps said: i badly need membership in this cu but not eligible.Read the old thread. I believe you will see people joining UofM alumnui association and backdooring their way into the credit union.

scotto777 said: Did you see this in a branch or online? I dont see this online and my CD from last year is set to expire in less than a month and this could be an excellent option. Thanks.

start 9/29

Anyone tried becoming a member online https://www.secumd.org/html/secu/lower.htm?page=apps.membership and select Alumnus of or Student?

Am I the only one who's suddenly considering registering for an online-only course at a community college in Maryland?

Thanks OP (might have to UN-Cancel my AOR.... was going to wait a bit, but with a deal like this!?!?!)...

Can anyone who is a SECU member become my uncle, aunt, nephew, niece, Grandparent? Please PM me with your member #. Thanks

techie3 said: Has anyone looked into paying membership for University of Maryland alumni association? I believe it is only $55.

I'm weighing out my options for membership. I can't decide if I just want to pay the $55 or see if I can figure another way around it.

mh83 said: - promotion is scheduled for September 29, 2007 – November 30, 2007I doubt it will last that long - seems like last year's promo lasted about 5 days in total.

jairocon said: Seems like if you open a checking account by tomorrow, you might be eligible for the $100 promo (direct deposit, online statements and bill pay requirement). Might offset any alumni assn/online course fees.

" ... members receive $50 for opening a new SECU checking account with Direct Deposit of at least $100 to checking"

But you need to have direct deposit of funds. If I send money transfer from gmac or paypal do?

Why am I not seeing this offer anywhere on their site??

DavidScubadiver said: I don't get it. I thought all CD's were for a fixed rate for a fixed deposit amount.
Not at all.
See counterexample.
There are variable rate CDs. There are indexed CDs (CDs whose yield is tied to an index such as the CPI or the S&P 500). There are step-rate CDs (CDs whose interest rate increases over time).

There are also CDs that let add money and withdraw money during the term of the CD.

And there are various gimmick CDs too numerous to mention.

I just called 1-800-879-SECU and was told the online CD promo will be posted Saturday 9/29. The rep was able to fax it to my work fax today. She also offered to fax membership application.

Minimum = $2000
Maximum = $200000

Her terms of the offer were slightly less than OP: 5.00% + 2.25%.

FYI....Im on my way to the fax now.....

Filled out the online app for membership. It said they had to mail me the signature card.
I assume it will be Monday before I get it (possibly Tuesday).

Here's hoping this all pans out. If so, it could be one of my best fatwallet scores in years!

jackcrawfish said: I just called 1-800-879-SECU and was told the online CD promo will be posted Saturday 9/29. The rep was able to fax it to my work fax today. She also offered to fax membership application.

Minimum = $2000
Maximum = $200000

Her terms of the offer were slightly less than OP: 5.00% + 2.25%.

FYI....Im on my way to the fax now.....
The difference in the terms she gave you is rather disturbing. I hope they’re not revising the offer. I also don’t think the offer will last the full two months.

The membership application is already on the website. No need for faxing. When I spoke to the CSR yesterday, she couldn't tell if the application for the 7-month CD will be the same as the CD application that's currently on the website, so i don't have any information in that regard.

I would definitely read the fine print of this offer before signing up for college classes or joining any association.

The 5.00% APY is what concerns me. The APY is supposed to encompass all fees and bonuses. The fact that the bonus is separate is odd.

Another odd thing is the fact that the CD term is 7 months, with interest compounded and paid quarterly. At the end of the term, do you have to wait two more months for the last payment?

Now, I know some of you got a similar "deal" last year. If you did, did you confirm that you really got all the interest you had coming? I would hate for someone to jump through these hoops just to end up with 5.00% APY which you can get almost anywhere.

That said, I calculate $5459 interest over 7 months on $100K for an effective APY of almost 9.36%.

Edited APY to take into account 2.50% bonus paid at time of deposit, not withdrawal

makeinu said: It bounced. The funds were withdrawn from my account yesterday and the bank told me on Monday that the "check was returned from SECU unpaid".

I have the bottom receipt-portion of the check with the check number and everything which I gave to SECU when I asked them why it wasn't paid and they told me they won't know until they receive the check back from their intermediary bank.

Also, I wasn't expecting the funds to be available on Saturday. The bank just happened to make them available until they got notice that the check was being returned.

The saga continues. I finally got a replacement check which I mailed off for deposit two weeks ago, never to be seen again. I'm going to rip my hair out. Over the last month I have had all of the following methods of deposit result in utter failure:
1. Cashier's check deposited at B&M (returned).
2. Wire transfer on cleared funds (refused due to large amount).
3. Cashier's check mailed for deposit (lost).

Next time I am insisting on cold hard cash.