5.75% Long-Term Annuity CDs at a Missouri CU (Alliance)

Alliance Credit Union is offering a special type of certificate of deposit called a Fixed-Term Annuity CD. Unlike most annuities sold, this one is more like a CD. It's offered through the credit union and not through any insurance company, so funds are federally insured by the NCUA.

This Annuity CD acts like a CD except that monthly payments consist of both interest and principal so the payments are a fixed amount for the entire term. When the term is over, all of the CD balance and interest have been paid. Terms range from 5 years to 20 years. The current rate and APY is 5.75% (see rate table). The minimum deposit is $10K. The early withdrawal penalty is 180 days of interest.

The credit union's FAQ on these CDs has many of the details. One note about this Annuity CD is that you can transfer an existing IRA into this CD.

The field of membership includes those who reside or work in St. Charles or St. Louis County of Missouri. You may also be eligible via work or family. See site for details.

The credit union is federally insured by the NCUA. It has $117 million in assets and 18,373 members.