Melrose Credit Union Review: Checking, Savings, CD and IRA Rates

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Updated on Tuesday, September 1, 2020

Melrose Credit Union’s checking accounts

Melrose Credit Union E-Z Checking Account

Melrose Credit Union’s E-Z Checking Account is a basic checking option with no monthly fees or minimum balance requirements.

APY

Minimum balance amount to Earn APY

0.10%

$500

  • Minimum opening deposit: $25, plus a one-time $1 membership fee
  • Monthly account maintenance fee: None
  • ATM fee: $1 plus any additional fees charged by the bank operator for balance inquiries and transactions at non-CO-OP ATMs
  • ATM fee refund: None
  • Overdraft fee: $30, or $5 if funds are available to be transferred from savings

Melrose Credit Union’s E-Z Checking Account is a great option for individuals who want to avoid having to keep track of balance and deposit amounts in an effort to avoid fees. While there are no general monthly balance requirements to keep the account open, account holders can only earn interest if they maintain a daily balance of at least $500.

This account also comes with free starter checks and the account’s online platform allows users to complete tasks like paying bills, transferring funds and executing direct deposits with ease. Although the credit union welcomes anyone to apply for membership, if you are applying to open its checking account from outside the state of New York, you will be required to also open one of its share certificates (the credit union equivalent of a certificate of deposit) or IRA products.

How to get Melrose Credit Union’s E-Z Checking Account

You have to either apply by mail or in person to become a member and open an account at Melrose Credit Union. To open an account, you’ll need to provide personal information such as your name, address and date of birth, as well as documentation including a valid photo ID, proof of address (such as a utility bill) and your Social Security number. Providing this information to successfully open an account can end up being difficult if you don’t live near the credit union’s headquarters, though. However, you can complete and print out an application on Melrose Credit Union’s website before mailing it to Melrose Credit Union, ATTN: Member Services, 139-30 Queens Blvd, Briarwood, NY 11435.

SEE DETAILS Secured

on Melrose Credit Union’s secure website

NCUA Insured

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How Melrose Credit Union’s checking account compares

While we love that Melrose Credit Union’s E-Z Checking Account gives users the peace of mind of basic checking services with no regular fees or balance requirements, there are still better checking account options out there with higher APY rates and added perks like no ATM fees and out-of-network ATM fee reimbursements. The fact that the credit union only has one physical location could be a problem for non-local members wishing to take care of transactions or account issues in person.

Melrose Credit Union’s savings accounts

Melrose Credit Union Basic Share savings account

A basic, no-frills savings account with no fees and minimal opening costs.

APY

Minimum balance amount to Earn APY

0.10%

None

  • Minimum opening deposit: $25, plus a one-time membership fee of $1, or $2 for joint membership
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: $1 plus any additional fees charged by the bank operator for balance inquiries and transactions at non-CO-OP ATMs
  • ATM fee refund: None
  • Overdraft fee: $30

If you’re looking for a basic savings account that will simply provide you with a safe and secure place to store your funds with no fees, but not much more, Melrose’s Share Savings Account may be a good option. While there is no set balance requirement to earn the APY, the ability to earn dividends depends on the deposit amount and interest rate. (FYI, dividends are similar to interest in the credit union industry.)

Although Melrose welcomes anyone to apply for membership, if you are applying to open this savings account from outside the state of New York, you will be required to also open one of its share certificate or IRA products.

In compliance with Federal Reserve Regulation D, Melrose Credit Union limits certain savings account transactions to just six per month. This includes electronic payments, online transfers and automatic payments. Unlimited transactions that aren’t subject to this rule include ATM transactions and transfer payments made to a Melrose Credit Union loan.

How to get Melrose Credit Union’s Basic Share Savings Account

You have to either apply by mail or in person to become a member and open an account at Melrose Credit Union. To open an account, you’ll need to provide personal information such as your name, address and date of birth, as well as documentation including a valid government-issued photo ID, proof of address (such as a utility bill) and your Social Security number. You can complete and print out an application on Melrose Credit Union’s website before mailing it to Melrose Credit Union, ATTN: Member Services, 139-30 Queens Blvd, Briarwood, NY 11435

SEE DETAILS Secured

on Melrose Credit Union’s secure website

NCUA Insured

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How Melrose Credit Union’s savings account compares

While we do like that the minimum deposit to open this account is so minimal ($25 is pretty hard to beat), when you look at the account’s APY, you’ll see that you can definitely get much better rates on other savings accounts elsewhere.

Melrose Credit Union’s share certificate rates

Melrose Credit Union share certificates

High rates and various term options make these a great choice.

Term

APY

1 year

2.10%

2 year

2.35%

3 year

2.35%

4 year

2.40%

5 year

2.70%

  • Minimum opening deposit: $5,000
  • Minimum balance to earn APY: $5,000
  • Early withdrawal penalty: For the 1 year certificate, 90 days’ worth of interest on the amount withdrawn plus reduction to the share rate at time of purchase. For the 2  to 5 year certificates, it’s 180 days dividend penalty plus a reduction to share rate at the time of purchase.

A share certificate account is similar to a certificate of deposit (CD), but it is issued by a credit union rather than a bank. Share certificates are federally insured by the National Credit Union Administration (NCUA). Each account is federally insured up to $250,000.

Melrose Credit Union’s share certificate options are available in terms ranging from 12 to 60 months with a minimum opening deposit of $5,000. Its share certificates’ rates have been consistently highlighted as some of the best out there by DepositAccounts.com, another LendingTree company. Dividends on these share certificates are compounded quarterly.

How to get Melrose Credit Union’s share certificates

To purchase one of Melrose Credit Union’s share certificates, you’ll need to either call the credit union at 718-658-9800 (or 800-235-0118), or send an email to [email protected] for a certificate disclosure and application.

SEE DETAILS Secured

on Melrose Credit Union’s secure website

NCUA Insured

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How Melrose Credit Union’s share certificates compare

Compared with other CD rates, Melrose Credit Union’s share certificates definitely stand out as competitive, which makes them a great option for people looking for a solid CD equivalent from a credit union. Its minimum deposit requirements also fall in line with many of the best offerings out there.

Melrose Credit Union’s IRA account options

Melrose Credit Union IRA share certificates

Competitive rates make these share certificates a great option to store retirement funds for a specific period of time.

Term

APY

1 year

2.10%

2 year

2.35%

3 year

2.35%

4 year

2.40%

5 year

2.70%

  • Minimum opening deposit: $4,000
  • Minimum balance to earn APY: $4,000
  • Early withdrawal penalty: For the 1 year certificate, 90 days’ worth of interest on the amount withdrawn plus reduction to the share rate at time of purchase. For the 2 to 5 year certificates, it’s 180 days dividend penalty plus a reduction to share rate at the time of purchase.

Melrose Credit Union’s IRA share certificates are a great option for those seeking a safe way to store retirement funds for a set amount of time, all while reaping competitive rates. The credit union’s IRA share certificate rates are virtually the same as its regular share certificate options, though the IRAs require a smaller minimum deposit of $4,000. Similar to the regular certificate options, the IRA share certificates don’t require a specific balance higher than the minimum deposit to earn the APY. Melrose also offers members the option of transferring their quarterly dividend to another share account.

How to get Melrose Credit Union’s IRA share certificates

To get a Melrose Credit Union IRA share certificate, you will need to call or email the credit union at 718-658-9800 or 800-235-0118 or [email protected] for the certificate disclosure and application

SEE DETAILS Secured

on Melrose Credit Union’s secure website

NCUA Insured

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How Melrose Credit Union’s IRA share certificate rates compare

As with its standout share certificates offerings, Melrose Credit Union’s IRA share certificate rates are on par with the best IRA CD rates out there, and its minimum deposit requirement falls somewhere in the middle compared with other options with similar rates. Melrose’s IRA share certificates also provide the same tax benefit (and contribution limits) as a traditional IRA. The IRAs are available for both traditional and Roth plans.

As an added bonus, Melrose Credit Union also offers members free certified financial planning to help with retirement and other money-related decisions.

Traditional IRA savings account

A flexible way to save without being taxed until you reach retirement.

APY

Minimum balance amount to Earn APY

0.50%

None

  • Minimum opening deposit: None, though a deposit of any amount is required.
  • Minimum balance to earn APY: None
  • Early withdrawal penalty: 10% additional tax if withdrawing before you reach age 59½.

Melrose Credit Union’s Traditional IRA savings account is a great option for those looking for a flexible and convenient option to save for retirement without being taxed on your contributions until then. This account allows you to contribute any amount up to $5,000 total per year. Melrose Credit Union also offers members free certified financial planning to help with retirement and other money-related decisions. You can also consult with a tax adviser to determine if your contributions are tax-deductible.

In compliance with Federal Reserve Regulation D, Melrose Credit Union limits certain IRA savings account transactions to just six per month. This includes electronic payments, online transfers and automatic payments. Unlimited transactions that aren’t subject to this rule include ATM transactions and transfer payments made to a Melrose Credit Union loan.

SEE DETAILS Secured

on Melrose Credit Union’s secure website

NCUA Insured

Roth IRA savings account

APY

Minimum balance amount to Earn APY

0.50%

None

  • Minimum opening deposit: None, though a deposit of any amount is required.
  • Minimum balance to earn APY: None
  • Early withdrawal penalty: 10% additional tax if withdrawing before you reach age 59½.

The credit union’s Roth IRA allows you to reap competitive rates on tax-free earnings while you save for retirement. Since the funds you’re contributing have already been taxed prior to moving them into the account, qualified distributions are exempt from taxes and penalties. A tax adviser may also be able to help you determine if you’re eligible to withdraw funds from your Roth IRA to put toward a first-time home purchase.

How to get Melrose Credit Union’s IRA savings accounts

To open and contribute to one of Melrose Credit Union’s IRA products, you’ll need to speak to a credit union representative either by calling 718-656-9800 or visiting its headquarters in person.

SEE DETAILS Secured

on Melrose Credit Union’s secure website

NCUA Insured

Overall review of Melrose Credit Union’s banking products

While it’s hard to beat the absence of regular fees on all of Melrose Credit Union’s financial products, its competitive CD-equivalent share certificate and IRA share certificate rates are what truly make it stand out. At first glance, the fact that out-of-state members need to open one of these products (or one of its IRA offerings) in order to be able to open a checking or savings account might seem like a drawback, but because the checking and savings account don’t offer any perks beyond not having any fees, we say don’t bother opening those unless you’re specifically joining Melrose Credit Union for one of its share certificate products and happen to also need to open one of those additional accounts in general.

However, the fact that you can only apply to join the credit union either by mail or in person is likely to deter many potential members who don’t live in the Queens, N.Y. area. Considering how easy it is to apply to open an account online at other institutions, we won’t blame you if you decide not to bother because of that added hassle alone. Lastly, it’s also important to note that while Melrose Credit Union doesn’t charge a fee on its own ATMs, they are only available in the Queens, N.Y. region where its headquarters is located, which means non-local members will be hit with fees often if they need to make regular cash withdrawals.

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