In April, I wrote about Alaska USA Federal Credit Union’s (Alaska USA) 60-month CD. At that time, Alaska USA offered three deposit levels on its CDs – $500, $100k, and $250k. The CD product line has been revamped and now offers six deposit levels – $500, $10k, $25k, $50k, $100k, and $250k.
Following a 35 bps increase, the 60-month CD now has a top rate of 3.70% APY ($250k). While not as competitive as the 60-month, the 48- and 36-month CDs also have attractive rates.
The CDs are also available as IRAs (Traditional, Roth, and SEP) earning the same tiered APYs, with the same funding requirements.
In the past nine months, the 60-month CD has gained 135 bps in four rate increases. The current 3.70% is the 60-month CD’s highest APY since DA began tracking it in March 2010.
As stated in the Share Account Statement Disclosure, the Early Withdrawal Penalty reads as follows:
If the maturity period (term) of the Certificate is 730 days or more, the Certificate owner shall forfeit an amount equal to the lesser of:
365 days of dividends on the amount withdrawn, or all dividends on the amount withdrawn since the date of issuance or renewal.
In addition, withdrawals are subject to minimum balance requirements.
Partial withdrawals from a Certificate or IRA Certificate are not allowed
if the withdrawal would lower the balance below the required minimum.
Headquartered in Anchorage, Alaska USA Federal Credit Union’s field of membership (FOM) is residency-based, with individuals who live, work, worship, or attend school in Alaska, Washington, San Bernardino County (California), and Maricopa County (Arizona) eligible to join.
Joining Alaska USA can be done at any of 84 branches located in Alaska (34), Arizona (8), southern California (8), and Washington (34) or by calling the 24-hour Member Service Center (800.525.9094).
Opening a CD can be done at any of the above-mentioned branches. Existing Alaska USA members who are enrolled in the Credit Union’s online banking system, UltraBranch, are able to open a CD online.
For such a large credit union, it’s surprising Alaska USA doesn’t have an online membership application, or even a PDF of the membership application available for download.
Credit Union Overview
Alaska USA Federal Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 10.60% (excellent) based on September 30, 2018 data. In the past year, Alaska USA has increased its total non-brokered deposits by $434.33 million, an excellent annual growth rate of 6.94%. Please refer to our financial overview of Alaska USA Federal Credit Union (NCUA Charter # 5913) for more details.
Alaska USA was originally charted in 1948 as the Alaskan Air Depot Federal Credit Union, serving military personnel and federal employees stationed in pre-statehood Alaska. The Credit Union’s name was changed 1975 as its FOM diversified, including the addition of ten Alaska Regional Native Corporations. Between 1983 and 2010, Alaska USA merged or acquired six credit unions in Washington and California, and in 2014, opened its first Arizona branch. Alaska USA is currently the largest credit union headquartered in Alaska, with more than 662,000 members and assets in excess of $7.5 billion.
How the CD Compares
When I wrote about Alaska USA’s 60-month CD in April, the lowest deposit tier ($500) offered an APY that ranked at the top of the length-of-term category. A lot has changed in the rates race in the last eight months, and while the 60-month CD still has a top APY, this time a minimum $250k deposit is required. The "rising tide lifts all boats" aphorism comes to mind.
Given that Alaska USA's FOM includes four separate and disparate states, the following comparison only includes nationally available 5-year CDs.
The above rates are accurate as of 12/19/2018.
To look for the best nationwide CD rates and the best CD rates in your state, please refer to our CD Rates Table page.