Mountain America Credit Union (MACU) has just recently come out with a special 5-year CD rate that’s very competitive. It has a 2.20% APY with a $500 minimum deposit. MACU calls these Term Deposits, and they’re available in IRAs. This special term deposit is listed in MACU’s promotions page as of 3/3/2014. According to this page, this is a limited time special. Thanks to DA member OldGuy who posted on this news in the forum.
Some of the term deposit details are listed in the credit union's membership agreement. However, it doesn't appear to list the early withdrawal penalty. MACU has details of its early withdrawal penalty in its Q&A database. Here’s what it says:
Terms of 12 months and shorter are assessed a 30-day interest penalty. Terms of 12-48 months are assessed a 90-day interest penalty. Terms greater than 48 months are assessed 180 days of interest penalty. All penalties assessed are based on the full balance of the term. Early withdrawals terminate the entire term and the remainder must be reinvested in a new term, transferred to another share or loan, or withdrawn.
As you can see, the 5-year CD has an EWP of 180 days of interest. It’s also important to note, that you can’t do partial withdrawals of principal. If you withdraw any principal, the entire CD will be closed.
Credit Union Membership
Credit union membership is open to members of the American Consumer Council. According to the ACC website:
if you currently use or have used a major consumer product or service in the past 12 months, you can join ACC or your state consumer council for $5.00!
There used to be a free option for those who wanted to use ACC to join a credit union, but I don’t see that option any more.
ACC is listed in the credit union's SEG Affiliated Associations page. For more ways to qualify for membership, please refer to MACU’s Eligibility page. In my email to this credit union a couple of years ago, I mentioned that I was interested in becoming a member via this council. Here's the reply I received:
We would be happy to take a membership application for you. If you have a branch near you please visit them with your picture ID. They will need $25.00 to get the account open and going. If you plan on opening a checking account that will require a minimum of $100.00.
If you are not near a branch location you can apply online or call us at 1-800-748-4302.
Large Branch Network
Mountain America Credit Union branches are located in Utah, Arizona, Nevada, Idaho and New Mexico. Some of the major cities with branches include Boise, Phoenix, Las Vegas, Albuquerque, Provo and Salt Lake City.
MACU also belongs to a shared branching network as well as several ATM networks, including the CO-OP Network, which allows members to complete surcharge-free transactions at more than 25,000 ATMs nationwide.
Mountain America Credit Union Overview
MACU is a large credit union with $3.64 billion in assets. It has an overall health grade at DepositAccounts.com of an A with a Texas Ratio of 8.94% (excellent) based on September 2013 data. Please refer to our financial overview of MACU for more details. The credit union is federally insured by the NCUA (Charter # 24692).
How This CD Rate Compares
The highest 5-year CD rate that’s available nationwide is 2.30% APY at Navy Federal Credit Union. This requires a $100K minimum deposit. Membership into Navy Federal has limitations. In addition to MACU, CIT Bank also offers a 2.20% APY, but this requires a $100K minimum deposit. Barclays has a 2.15% APY with no minimum deposit.
The above rates are accurate as of 3/3/2014.
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.