Advantage One Credit Union (Advantage One) has added a 15-month CD Special, earning a competitive 5.25% APY. The minimum opening deposit is $1k, with no stated balance cap.
”Special” doesn’t fully describe all the bells and whistles this limited-time 15-month CD offers. As stated on the landing page,
Enjoy delicious savings with our 15 Month Certificate at 5.25% APY! With no withdrawal penalty, and only $1,000 minimum to open, this is a sweet deal! Bonus, you can even add additional money to your certificate whenever you'd like.
The quote needs a bit of clarification: “no withdrawal penalty” literally means no penalty whatsoever. According to CSR, the 15-month CD Special offers unlimited no-penalty withdrawals. The add-on feature requires a $500 minimum for each additional deposit.
The Elusive Add-On CD
“Searching for the Elusive Add-On CD,” authored by DA reader and guest blogger, Charles Rechlin, does an excellent article explaining Add-On CDs. As Charles stated,
To my mind, an ideal add-on CD possesses the following features:
- a multi-year term (three or more years)
- a fixed or minimum rate that is reasonably competitive with rates offered on CDs of identical maturity that don’t carry add-on rights
- a low opening balance requirement
- an unlimited right to make additional deposits from time to time, with no maximum balance
It’s extremely difficult, if not impossible, to locate a CD combining all of these features. You’re fortunate if you can find one with a couple of them.
The 15-month CD Special has at least two of the features mentioned above. The relatively short 15-month term is definitely a shortcoming for an add-on CD, but the unlimited penalty-free withdrawals might make up for term-length. Nevertheless, if you have a CD maturing in the near future, opening a 15-month CD Special with a minimum $1k deposit would ensure a safe place for those maturing funds, particularly if rates should fall any time in the next year.
A potential downside to any add-on CD is that a bank or credit union might change the terms on existing CDs. The fine print on the landing page contains the following caveat, which could certainly be used as a justification for any changes.
Limited time offer and subject to change without notice.
DA readers may remember that in October 2019, GTE Financial made changes to the terms of existing promotional share certificates opened in 2018 and 2019. While GTE Financial quickly reversed its decision after a general outcry by its members, there’s no guarantee that another credit union would be as accommodating.
Headquartered in Brownstone, Michigan, Advantage One Credit Union’s field of membership (FOM) recently expanded and now includes anyone who lives, works, worship, or attend school in any of Michigan’s 83 counties.
Immediate family members of current Advantage One members are welcome to apply, “Immediate family” is defined as children, parents, and siblings and includes “stepchildren, stepparents, step siblings, and adopted children.”
Open a Primary Savings account with a $5 minimum deposit establishes an Advantage One membership. A $50 minimum average balance is required to start earning dividends.
Existing members can open a CD Special using the Advantage One online platform or at either full-service branch location.
FYI – Advantage One Credit Union is a small credit union, with assets in excess of $234 million, about 60 employees, and only two branches. It is not unusual for the capabilities of a small financial institution to be overwhelmed when offering a competitive product to a newly expanded market area.
Funding and Other Details
The following information is from a conversation with CSR.
- Funding – ACH, check, internal transfer, Shared Branch transaction.
- CO-OP Shared Branch Participate – Yes.
- Ownership – Individual or joint.
- Dividends – Compounded/credited quarterly and can be withdrawn at any time penalty-free.
- Maturing Funds –Cashier’s check to address on file or transferred to a Primary Savings account.
- Penalty-Free Withdrawal –Cashier’s check to address on file or transferred to a Primary Savings account.
- Beneficiaries – Unlimited and percentages can be assigned. Social Security numbers are not required.
- Grace Period – 10 calendar days.
- Credit Check – Soft pull when joining.
Credit Union Overview
Advantage One Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 6.31% (excellent) based on December 31, 2022 data. In the past year, Advantage One has increased its total non-brokered deposits by $8.16 million, an excellent annual growth rate of 4.02%. Please refer to our financial overview of Advantage One Credit Union (NCUA Charter # 68679) for more details.
Established in 1952 as the McLouth Employees Federal Credit Union (MEFCU), the original FOM was exclusive to employees of McLouth Steel Corporation. Thirty years later, MEFCU rebranded as Southgate Community Federal Credit Union as the FOM was expanded to include those living or working in Southgate. The FOM was expanded in 2001, 2007, and 2016 (adding more Downriver and SouthEast Michigan communities), with the new statewide FOM in place for only a short time.
How the 15-Month CD Special 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, only one credit union has a higher rate than currently offered on the Advantage One Credit Union 15-month CD Special. The following table compares the 15-month CD Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
How the 15-Month CD Special Compares as an Add-On CD
When compared to the nationally available Add-On CDs tracked by DepositAccounts.com, the Advantage One Credit Union 15-month CD Special APY currently ranks first, regardless of term length or required minimum deposit.
How the 15-Month CD Special Compares as a No-Penalty CD
When compared to other nationally available no-penalty CDs tracked by DepositAccounts.com that have a term of at least 11 months, no banks or credit unions have a higher rate than the rate offered on the Advantage One Credit Union 15-month CD Special. The following table compares the 15-month CD Special APY to the four highest-rate No Penalty CD APYs that are available nationwide.
The above information and rates are accurate as of 6/9/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our Best CD Rates Table page.