Advantage Credit Union (IA) Offers 6% APY 12-Month CD Special
Advantage Credit Union (Advantage CU) is starting 2023 off with a “New Year Savings Spectacular” – a limited-time 12-month CD earning 6.00% APY. (This is definitely a rate milestone: the last time I wrote about a 6% APY was 2008 and it was offered on a 60-month CD.)
The minimum opening deposit is $10k. The maximum deposit is $250k. According to the Account Disclosures page,
$10,000 minimum to open with at least $10,000 in new money to Advantage Credit Union.
As stated on the Account Disclosures page, the Early Withdrawal Penalty (EWP) reads as follows:
Penalties for early withdrawal are equivalent of 90 days dividends on the amount withdrawn (except the 30 and 36 month term has 180 days interest penalty). Partial withdrawals are allowed provided the balance does not fall below the minimum balance of the tier as set at time of opening.
Thanks to DA reader, numberten, for the New Year’s Day Forum post about this very hot deal.
Availability
Headquartered in Newton, Iowa, Advantage Credit Union’s field of membership (FOM) is community-based, with U.S. citizens and resident aliens (18 years or older) who live or work in any of the following 19 Central Iowa counties eligible to join:
Appanoose, Benton, Boone, Davis, Iowa, Jasper, Keokuk, Lucas, Mahska, Marion, Marshall, Monroe, Polk, Poweshiek, Story, Tama, Wapello, Warren, or Wayne.
Account Opening
Advantage CU does not have an online application and according to CSR, the 12-month CD can only be opened in-branch. As stated on the Account Disclosures page, “This offer is not eligible to be opened via online banking” and is “Not eligible for business accounts, public funds or financial institutions.”
Joining Advantage CU and/or opening a 12-month CD can be done at the sole Iowa branch located in on W 3rd Street N. Appointments are available and can be scheduled online.
Credit Union membership is required for any credit union accounts. Minimum balance of $25.00 in prime shares required for membership.
Funding and Other Details
The following information is from a conversation with CSR this morning.
- Funding – ACH, wire ($3.50 fee), or shared branch transfer.
- CO-OP Shared Branch Participant – Yes.
- Dividends – Compounded daily/credited monthly and can be transferred to a Advantage CU savings/checking account.
- Maturing Funds – Wire ($15 fee), cashier’s check, or internal transfer.
- Beneficiaries – Unlimited, percentages can be assigned, Social Security number required.
- Grace Period – 10 calendar days before automatic renewal.
- Credit Check – Hard pull when joining.
Credit Union Overview
Advantage Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 5.48% (excellent), based on September 30, 2022 data. In the past year, Advantage CU has increased its total non-brokered deposits by $4.78 million, an excellent annual growth rate of 5.78%. Please refer to our financial overview of Advantage Credit Union (NCUA Charter #64030) for more details.
Advantage Credit Union is currently Iowa’s 25th largest credit union, with more than 6,500 members and assets in excess of $102 million. Founded in 1937 by 14 Maytag plant employees, the credit union was originally known as Local 1116 UERMWA Credit Union. In the early 20th century, Newton, Iowa was the “Washing Machine Capital of the World,” thanks to Frederick Louis Maytag, the founder of the Maytag Washing Machine Company. The 2006 acquisition of the Maytag Corporation by the Whirlpool Corporation resulted in the end of all Maytag operations in Newton.
How the 12-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $10k or less, no banks or credit unions have higher rates than currently offered on the Advantage Credit Union 12-month CD. The following table compares the 12-month CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above rates and information are accurate as of 1/3/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.