Thank you for your important post. It would be a kindness for you to share the percentage bonus that AACU paid. That way we all can judge the importance of their bonus program.
Ok, Trader!
Do you find Keeslerās rate options curious? They have a 21 month and 30 month option. The first 2 āstepsā of the 30 month option pay ~2.65% APY - which is essentially identical to the 21-month certificate. Then they tack on another 10 months at 4.1%.
4% seems quite optimistic for 2-year rate projectionsā¦ I think youād agree that it seems well above ācompetitiveā for what rates are likely to be available at the time (20 months from now), let alone for what will at that point be a <1yr term? Itās a fools errand to try to get inside their head, but itās still interesting to speculate on whatās driving their pricing strategy - do they really expect rates to rebound in a year and a half, or is there another angle in play?
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To me, the 4% piece cannot be considered on a stand-alone basis. A member can only access that final step up to 4% by first enduring the lower rates at the front end of the CD. Itās a āpackage dealā.
You want that 4%? Then you must first endure ten long months at a paltry 2% . . . or whatever. In addition, the Keesler structure imposes a severe penalty for early withdrawal. This is because if you close the CD before reaching the juicy part in the final ten months, you end up both paying a penalty ALONG WITH suffering that low interest rate at the front end. That is a proverbial 1-2 punch. Hence my warning all along not to go into the Keesler deal if you might need the funds early.
As for the shorter Keesler offering, I admit not having given it much study or thought. Iām already concerned with CDs as short as 30 or 36 months. I donāt think a 21 month lock-in is a good option at all.
I made a huge commitment of funds to NFCU back with their five year CD at 3.5% APY. So far, so good, and no concerns yet that I went too long on the term. I do have concerns that my ongoing PSECU 34 month CD escapade, even at 3.25%, might be too short a term.
Note the above observations are just my opinion. I could be totally in error and it would not be the first time, I assure you. I could be so full of prunes! We will only know in the fullness of time.
Thatās normally what Iād say as well. However, in this case the 30month and 21 month certificates are virtually identical; you arent getting a paltry low rate for the first 20 months to offset the high back end, youāre getting virtually the same rate as the 21 month term is getting anyways. Then a bonus 4% tacked on the end for a few extra months.
This isnt about making the best choice as a customer, itās about understanding the pricing strategy from the CUās perspective. What are they gaining by paying up so much to lock people in for an extra 9 months 2 years from now? Random promo rates I get, but this is one of their standard products.
Well, I have worked as a manager . . . but never of any sort of financial institution; nothing even remotely close. So I have no clue as to their thinking or strategy. I can offer wild speculation:
Perhaps they are banking on higher penalty income from members who, as it might turn out, need their money back after all during that third year . . . an outcome the unfortunate yield-hungry member was unable to foresee two years in advance. Or possibly they (unlike yours truly) believe interest rates are headed north in the intermediate term.
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Thatās exactly what I was thinking, too. Seems rather shady, though.
Frankly, though, Iām wondering if management has been happy with their monthly interest expenses, and simply hasnt remembered the fact that all these certificates currently costing 2% is going to jump to 4% in less than two years. And thus why they havent adjusted the rate at all - 2% is perfectly sustainable these days, so why changeā¦
Thank you, but no apology necessary. I had never heard it used regarding interest rates and my memory is too poor to recall having heard it regarding stock prices.
And whatās next, gelt, or the leaf (common in talk among bovines, and possibly in tulip mania pamphlets)? 
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I think of it more like the very generous 0% balance transfer come-ons that were so plentiful just after the turn of the century. Banks offered them because they expected people to not pay them off before the 0% period ended.
You may also consider that shady, but the entire cc industry could fall under that cloud.
I added my second Keesler āpackage dealā this morning. 30 mo- 3.21%, I guess this rate is as good as it gets in todayās climate.
Shinobiwan, thanks for mentioning this CD. After a comedy of not-exactly errors, I finally got my CDs opened. For the most part, the Keesler folks are quite competent, and everyone that I dealt with was friendly.
Again thanks for the eagle eye on decent (relatively) CD rates.
I do not see anyway to open Keesler step CD online. Do you have to call to open the step CD?
You need to get the funds in your share savings account, then you call to open the CD.
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Happy participants here are having success at Keesler. Will be interesting to see if rate remains available tomorrow (Wednesday).
Ken has posted a good CD deal, but it is for IRA funds only. Here is a link to Kenās deal:
Just a brief comment pursuant to this:
Kudos to Ken for mentioning the way in to which he points, namely joining the alumni association. I have done this elsewhere and it worked for me. Several years ago I joined the Fresno State (go Bulldogs!!) alumni association in order to gain entry into a local CU there. I did not attend Fresno State. I have never visited Fresno, California. I was nevertheless welcomed with open arms since I was willing to pay the entry fee (it was a really good CD there in Fresno).
So just in general, joining an alumni association is a can opener you should bear in mind, should the opportunity present itself, as you pursue great CD rates going forward.
Keesler step CD is still available for new members? Can i open a saving and then a CD if the rate remains available tomorrow?
Sure, why not? But why wait for tomorrow?
Keesler is one of those credit unions where āyou just gotta be a memberā. So CD or not you should join now. Even if the step CD is gone tomorrow, they likely will have another CD deal coming along soon. Do you remember their 5% APY CD deal? It was not all that long ago. And the Keesler CC is great, too (2% reward).
Iām a Keesler member even though I do not own a Keesler CD . . . . yet. Am sure itās only a matter of time. And I do have a Keesler CC.
First become a Keesler member online. As I recall I mailed a check with instructions to open the CD with the check. They opened the CD immediately on receipt of the check.
I also opened a savings account with the membership. But I thought by the time I arranged the ACH connection to the savings I could mail them a check & the CD would open quicker. Of course now that I have the ACH savings sit up itās easy to get funds into savings to open a second CD.
Looks like a 0.53% drop for the Keesler CDs.
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Gosh. With the death of the Keesler CD deal things are REALLY becoming difficult out there.
Iām losing hope. Where else are we gonna turn?
For first time Iām thinking about cashing in some CDās early, and paying the penalty, to be certain of being able to exercise my add-on options.
For the record I did not think the Keesler deal would die. I was wrong, and thatās not the only time.
Say it aināt so, Joe. 
I believe Keesler saw significant inflows over the last 10 days, and figured they could take a short breather. If they want another influx of cash, they know how to do it.