America First Credit Union Has Competitive Bump-Rate CDs
Last week, Utah-based America First Credit Union (America First CU) unveiled two Bump-Rate Certificate Specials: 12-month (5.25% APY) and 24-month (5.15% APY). Either can be opened with a $500 minimum deposit, with no stated balance cap.
|5.25%||$500||-||America First Credit Union||12 Month Bump-Rate Certificate Special|
|5.15%||$500||-||America First Credit Union||24 Month Bump-Rate Certificate Special|
According to the Bump-Rate Certificate landing page,
Bump-rate Certificate Accounts give you a one-time increase in your rate. You decide when to bump the rate and you can choose any of our terms (rates vary according to term).
CSR pointed out that the responsibility for requesting a rate bump belongs to the Certificate owner: America First CU will not inform you if the rate has been increased.
Note: While America First CU currently offers the same APYs on its 12-month and 24-month Certificate Specials, there’s no real advantage in opening a non-bump-rate Certificate.
|5.25%||$500||-||America First Credit Union||12 Month Certificate Special|
|5.15%||$500||-||America First Credit Union||24 Month Certificate Special|
As stated in the Truth-In-Savings disclosure, Early Withdrawal Penalty reads as follows:
The penalty schedule is as follows: Terms of twelve (12) months or less–sixty (60) days of dividend; terms over twelve (12) months–one hundred eighty (180) days of dividend. Minimum penalty is $5.00.
If the account has not yet earned enough dividends or if the dividend has already been paid, the penalty will be deducted from the principal.
Headquartered in Riverdale, Utah, America First Credit Union’s field of membership (FOM) is primarily community-based, with individuals who live, work (or regularly conduct business), worship, attend school, or volunteer in counties (or portions of) in Arizona (3), Idaho (16), Nevada (11), New Mexico (12), Oregon (1), and Utah (9) eligible for membership. A detailed explanation is included on the Become a Member page to help determine eligibility.
Employment: Owners, employees, or suppliers involved in the food industry in Utah qualify for membership.
Family Relationship: Members of the immediate family (Parent, Spouse, Sibling/Step, Child/Step, Grandparent, Grandchild) or household of current America First CU members or those eligible for membership are welcome to apply.
Joining America First CU and/or opening a Bump-Rate Certificate Special can be done online or at any of 112 Utah branches, located in the greater Salt Lake City area and the southwest corner of the state, or 16 southeast Nevada branches. There are also six Arizona branches (from the 2018 merger with Altier Credit Union), two Idaho branches (Boise and Rexburg), and a single branch in Albuquerque, New Mexico.
A Share Savings Account establishes a America First membership and can be opened with a $1 minimum deposit.
Funding and Other Details
The following information is from a conversation with CSR and from TIS disclosure.
- Funding – ACH, wire ($10 fee), debit card ($2.5k max online), or internal transfer.
- CO-OP Shared Branch Participant – No.
- Dividends – Compounded/credited monthly and can be “paid into Savings, Checking, Money Market Savings, or reinvested in your Certificate.”
- Maturing Funds – Automatically transferred into a Share Savings Account, then can be distributed by wire ($15 fee) or cashier’s check to address on file.
- Beneficiaries – Unlimited, equal shares, Social Security numbers are not required.
- Grace Period – 10 calendar days before renewal as a regular Certificate.
- Credit Check – Soft pull.
Credit Union Overview
America First Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.17% (excellent) based on September 30, 2022 data. In the past year, America First CU has increased its total deposits by $1.06 billion, an excellent annual growth rate of 7.23%. Please refer to our financial overview of America First Credit Union (NCUA Charter # 24694) for more details.
America First Credit Union was founded in 1939 as the Fort Douglas Civilian Employees Credit Union. (Closed in 1991, Fort Douglas was originally established in 1862 to protect the Central Overland Route telegraph lines and mail route.) The Credit Union’s first home was a small office in Fort Douglas that was only open for 30 minutes every Friday afternoon. In 1939, there were 79 members and total assets of $788; 84 years later, America First CU is the eighth largest credit union in the country, with more than 1,300,000 members and assets in excess of $17.6 billion.
How the 12-Month Bump-Rate Certificate Special Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, no bank or credit union has a higher rate than currently offered on the America First Credit Union 12-Month Bump-Rate Certificate Special. The following table compares the 12-Month Bump-Rate Certificate Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
How the 24-Month Bump-Rate Certificate Special Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, no bank or credit union has a higher rate than currently offered on the America First Credit Union 24-Month Bump-Rate Certificate Special. The following table compares the 24-Month Bump-Rate Certificate Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 2/21/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.
Also, after reading the TIS, it appears that both of these bump-rate certificates are also available in IRA's. Here is the specific wording from the first paragraph: "This schedule sets forth conditions, rates, fees and charges applicable to member Savings, Checking, Certificate Accounts, Individual Retirement Accounts (IRAs), Coverdell Education Savings Accounts (CESAs), and Health Savings Accounts (HSAs) at America First Federal Credit Union." (Bold Added)
Furthermore, the 12- and 24-month specials are clearly included in the list of bump-rate certificates. And, I see no language in the TIS that excludes IRA's from holding regular certificates or bump-rate certificates. Lastly, there is no separate list of IRA Certificates listed. So, it seems logical to assume these are the certificates that are held in an IRA.
I wish I qualified. I would jump on a 5.15% 24-Month IRA certificate with a bump option. And the 12-month, 5.25% certificate with one-time bump and a tiny 60-day early withdrawal penalty might even convince me to shift a bit of my Treasury bill investment since Treasury bills don't even offer a bump option.
I would say this credit union has gotten creative AND aggressive with two products in the sweet spot of the certificate market.
BTW, what’s your own inflation loss avoidance strategy, PD?
That's exactly the way the government calculates the inflation rate too. GMTA.
Now, for 7%, I would do unimaginable things! Then after i lock in the CD, I would call Fox News and broadcast that this CD is DISCRIMINATING! lol