American 1 Credit Union 5-Year IRA CD Is A Rate Leader
American 1 Credit Union’s (American 1) 5-year IRA CD has been at the top of the bi-weekly CD Rates Summary for the past three months. Currently earning 2.27% APY, the 5-year IRA CD (Traditional, Roth, CESA) can be opened with a $50 deposit.
The 5-year CD has a lower rate of 2.00% APY and can be opened with a $500 minimum deposit, with no stated balance cap.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 4.06% | $50 | - | American 1 Credit Union | 5 Year IRA (Traditional, Roth, CESA) | |
| 4.00% | $500 | - | American 1 Credit Union | 5 Year CD |
As stated in the Truth-in-Savings disclosure, the Early Withdrawal Penalty reads as follows:
The penalty we may impose will equal 90 days dividends on the amount withdrawn plus the amount of dividends earned on the amount withdrawn in excess of the amount of dividends that would have been earned at the Savings/Share account rate.
Funding can be done through ACH, wire transfer, or check. There is no rate lock when the application is submitted: the APY in effect when the funding is received by American 1 is the rate the CD will earn. Maturing funds can be distributed through a cashier’s check or transferred into an American 1 savings account. CDs automatically renew after a 7-day grace period.
Availability
Headquartered in Jackson, Michigan, American 1 Credit Union’s field of membership (FOM) includes a way for almost any U.S. citizen or legal resident to join.
Easy membership – Joining the Community 1 Cooperative ($3 fee) qualifies for American 1 membership.
Residency – Individuals who live in the Michigan counties of Calhoun, Hillsdale, Jackson, Lenawee, Washtenaw, or Wayne are also eligible for membership.
American 1 Credit Union has no online membership application, but joining and/or opening a CD/IRA can be done over the phone (517.787.6510 or 888.213.2848). American 1 has closed the lobbies of its 18 Michigan branches to walk-in traffic. Drive-thru service continues to be available.
Just $5 in your savings account makes you a member of
the area's most convenient and member-friendly credit union.
American 1 participates in both the CO-OP Shared Branching and ATM networks.
Credit Union Overview
American 1 Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 7.37% (excellent), based on December 31, 2019 data. In the past year, American 1 has increased its total non-brokered deposits by $29.6 million, an excellent annual growth rate of 11%. Please refer to our financial overview of American 1 Credit Union (NCUA Charter # 65595) for more details.
Established in 1950, the credit union was originally known as the Jackson Co-Op Federal Credit Union as a service to the members of the Jackson (Michigan) Co-Op. In 1987, the name was changed to American 1 Federal Credit Union, with the American 1 Credit Union rebrand occurring in 2011 following the adoption of a state charter. American 1 is currently Michigan’s 40th largest credit union, with more than 57,500 members and assets in excess of $421 million.
How the IRA CD Compares
When compared to 148 similar length-of-term IRA CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, American 1 Credit Union’s 5-year IRA CD APY currently ranks first.
To search for the best IRA rates, both nationwide and state specific, please refer to our IRA Rates Table page.
How the CD Compares
When compared to 185 similar length-of-term CDs tracked by DepositAccounts.com that require a minimum deposit of $10k or less and are nationally available, American 1 Credit Union’s 5-year CD APY currently ranks third.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
The above rates are accurate as of 5/21/2020.
Transaction Limitations: You may make unlimited additions into your account only up to the amount allowed for that year. There are no limitations on the frequency or timing of additions, except that no additions can be made in the last seven days before maturity.
p. 4 of PDF at https://www.american1cu.org/files/amerone/1/file/TruthInSavings.pdf
(bold in original)
(According to the Disclosure, additional deposits may not be made to non-IRA CDs. See p. 3 of above PDF.)
I do not believe add-ons would be permitted in the form of custodian-to-custodian transfers, or as rollover contributions made directly by the IRA account owner.
But that's just how I read it.
The rub in my view, especially if you are doing a direct transfer. I have done several over the past two months and have several more in progress. None of them are taking less than 2 weeks and some have taken 5. What are the chances this rate will still be in effect when they receive the funds? You have no idea. It's a crap shoot. And in this slow processing rapid rate declining environment the odds are not in your favor. And I don't consider the bank deposit portion of my portfolio to be something I want to play craps with.
We selected Schwab to acquire USAA wealth management services, brokerage accounts and investment management solutions. We selected Victory Capital to acquire the USAA Mutual Funds, USAA 529 College Savings Plan and USAA ETF businesses. Through these agreements we will deliver more value to members by providing greater access to highly competitive investment products, services and capabilities.
Other rates lowered substantially as well.