America First Credit Union has an add-on type of CD called Dedicated Savings. Most of the rates are below average except for the 60-month term which has a 3.00% APY as of 5/10/2010. Dedicated Savings require an automatic transfer of at least $10/month. You can make additional contributions up to $10,000 per month. The total deposits in Dedicated Savings are not allowed to exceed $100,000 per account.
The nice thing about add-on CDs is that they can provide a hedge against an extended low-interest rate environment. If rates stay low, you can always fall back on the add-on CD. The credit union lists some members' reviews at the Dedicated Savings page. Here's one that describes how additional deposits can be made:
I can make a simple phone call to member services and they can transfer the payment in less than 5 minutes.
The full details of the Dedicated Savings CD are listed in the rate and fee disclosure (pdf). According to the disclosure, CDs with terms of over 12 months have an early withdrawal penalty of 90 days of dividends. That's below average, and is another nice feature.
Membership eligibility has expanded since my last post on America First. Those in Clark County, Nevada are now eligible to join. This is probably due to America First's acquisition of Community One FCU that was liquidated by the NCUA in August 2009. Most of the other eligible counties are in Utah and include Salt Lake County, Utah County and Juab County. Please refer to the credit union's application for the full details.
America First Credit Union's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial, 2 stars (below peer group) at Bankrate.com and an overall health score of 2 out of 5 at DepositAccounts.com (see our rates and reviews page for America First CU). The credit union is federally insured by the NCUA (Charter # 24694). It's a large credit union with over $5 billion in assets.
Thanks to the reader who emailed me info on this Dedicated Savings CD.
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