In the beginning of April, Massachusetts-based Alltrust Credit Union (Alltrust) unveiled a 16-month Special Certificate (1.50% APY), which can be opened with a $2.5k minimum deposit of new money. New money is defined as “money not currently on deposit at Alltrust Credit Union.” This Special Certificate is actually an “add-on” CD that allows for unlimited additional deposits ($2.5k minimum of new money) throughout the term.
The 16-month Special Certificate is also available as a IRA Special Certificate (Traditional and Roth), earning the same APY with the funding requirements.
15-Month Growth CD
Alltrust’s 15-month Growth CD (1.00% APY), which also an add-on CD, is still being offered. Added to the product line in early 2019, the 15-month Growth can be opened with a $500 minimum deposit (new money). Unlimited additional deposits ($100 minimum of new money) are allowed throughout the term.
The 15-month Growth CD is also available as a Growth IRA CD (Traditional and Roth), earning the same APY with the funding requirements.
According to CSR, the Early Withdrawal Penalty for both the 15-month and 16-month CDs is 180 days of dividends, with partial withdrawals allowed.
Only one beneficiary can be designated, with full legal name, address, and Social Security number required.
The Elusive Add-On CD
One of the valuable contributions from DA reader and guest blogger, Charles Rechlin, is “Searching for the Elusive Add-On CD,” an excellent resource when considering an add-on CD. 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 Growth CD definitely puts savers in the “fortunate” category, having three of the features mentioned above, while the 16-month Special Certificate isn’t as fortunate, only having two of the four features. If you have a CD that’s maturing in the next few months, opening either one of these add-on CDs would ensure a safe place for those maturing funds in the near future.
A possible downside is that a credit union might change the add-on terms on existing CDs. 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 won't be more contrary.
Massachusetts Share Insurance
In addition to the NCUA insurance, funds in excess of $250k on deposit with Alltrust are also covered by the Massachusetts Share Insurance Corporation.
Massachusetts Credit Union Share Insurance Corporation insures all excess deposits.
Many thanks to DA reader, Carpline, for his Forum post about the 16-month Special Certificate.
Headquartered in Fairhaven, Massachusetts, Alltrust Credit Union’s field of membership (FOM) is community-based, with individuals who live, work, or attend school in the Massachusetts counties of Barnstable, Bristol, Dukes, Nantucket, Norfolk, or Plymouth, or in any Rhode Island county eligible to join.
”All family members” of current members are also welcome to apply.
Note: the online application does not currently list the 16-month Special Certificate. According to CSR, the online application doesn’t actually open a CD. She stated that choosing any CD would indicate your interest in opening a CD. After application submission, you will be contacted by an Alltrust representative to finalize the transaction, at which point you would indicate your preference for the 16-month Special Certificate.
To join, simply deposit $5 in a Regular Savings Account.
Credit Union Overview
Alltrust Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 1.94% (excellent) based on December 31, 2021 data. In the past year, Alltrust CU has increased its total non-brokered deposits by $3.8 million, an above average annual growth rate of 1.62%. Please refer to our financial overview of Alltrust Credit Union (NCUA Charter # 67481) for more details.
Established in 1922, Alltrust Credit Union was originally known as the Southern Massachusetts Telephone Workers Credit Union. The name was changed to Southern Mass Credit Union (SMCU) in 2003, following an expansion in the FOM. According to an April 2021 press release, SMCU announced the Alltrust re-brand.
“The Alltrust name better expresses our focus on being a trusted financial partner for all our members, at every stage of life,” said Carmen Sylvester, President and CEO of SMCU. “Our new brand identity more accurately reflects our credit union’s core values and culture, as well as our mission to help our members create brighter futures for themselves and their loved ones.”
Alltrust Credit Union is currently the 35th largest credit union headquartered in Massachusetts, with nearly 14,000 members and assets in excess of $299 million.
How the 16-Month Special Certificate Compares
When compared to the similar length of term Add On CDs tracked by DepositAccounts.com, which require a similar minimum deposit ($5k or less) and are not limited by a low balance cap, Alltrust Credit Union’s 16-month Special Certificate APY currently ranks first. The unlimited number of deposits allowed throughout the term makes the 16-month Special Certificate quite competitive.
The above information and rates are accurate as of 4/16/2022.
To look for the best CD rates, either nationwide or state-specific, please refer to our CD Rates Table page.