American 1 Credit Union Offers Competitive 2-Year and 3-Year CDs


Deal Summary: 2-year CD (2.50% APY), 3-year CD (2.75% APY), $500 minimum deposit. 5-year IRA Certificate (3.03% APY), $50 minimum deposit.

Availability: Easy membership requirement.

Two of the CDs offered by Michigan-based American 1 Credit Union (American 1) have become competitive in the last month. The rates on the 2-year CD (2.50% APY) and 3-year CD (2.75% APY) were raised in late July and have been in effect since that time. With so many CD rates falling, the 2- and 3-year CDs are now within reach of becoming rate leaders in their respective term category. Either CD can be opened with a $500 minimum deposit and there is no stated balance cap.

American 1 also has a very competitive 5-year IRA (Traditional, Roth, CESA), which earns 3.03% APY. It can be opened with as little as a $50 minimum deposit.

Funding can be done through ACH, wire transfer, or check. Maturing funds can be distributed through a cashier’s check or transferred into an American 1 savings account. There’s a 7-day grace period before a CD automatically renews.

Important Disclosure Details

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The penalty we may impose will equal 90 days dividends on the amount withdrawn plus the amount of dividends earned on the amount withdrawn in excess of the amount of dividends that would have been earned at the Savings/Share account rate.

This Early Withdrawal Penalty is small for long-term CDs, but there is a gotcha. Technically, no withdrawal of principal is allowed from CDs. As stated in the disclosure, the CD transaction limitations read as follows:

After the account is opened, you may not make additions into the account until the maturity date stated on the account. You may not make withdrawals of principal from your account before maturity. You can only withdraw dividends before maturity if you make arrangements with us for periodic payments of dividends in lieu of crediting.

The disclosure lists different transaction limitations for IRA CDs. In those limitations, early withdrawal of principal is allowed, although it requires the consent of the credit union. Also unlike the regular CDs, add-on deposits are allowed for IRA CDs. As stated in the disclosure, the IRA CD transaction limitations read as follows:

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. You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty. You can only withdraw dividends credited in the term before maturity of that term. You can withdraw dividends during the term of crediting after they are credited to your account. Withdrawal of dividends may be subject to an early withdrawal penalty.

It's important to be cautious of add-on features on CDs or IRA CDs. There have been a few credit unions that didn’t fully honor the add-on feature of their add-on CDs. This almost occurred in a recent case.


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. Joining American 1 and/or opening a CD/IRA can be done over the phone (517.787.6510 or 888.213.2848) or at any of 16 Michigan branches, located in Adrian, Battle Creek, Brooklyn, Canton, Chelsea, Clinton Township, Hillsdale, Jackson (5), Manchester, Melvindale, Michigan Center, and Milan.

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 the CO-OP Shared Branching and ATM networks, but according to CSR, “new members are not able to use shared branching for at least a year,” because of security concerns.

Credit Union Overview

American 1 Credit Union has an overall health grade of "A" at, with a Texas Ratio of 6.55% (excellent), based on June 30, 2019 data. In the past year, American 1 has increased its total non-brokered deposits by $20.23 million, an excellent annual growth rate of 7.62%. 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. 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 41st largest credit union, with more than 59,200 members and assets in excess of $390 million.

How the CDs Compare

When compared to 212 similar length-of-term CDs tracked by that require a similar minimum deposit and are nationally available, American 1 Credit Union’s 2-year CD APY currently ranks second, tied with 3 institutions (Home Loan Investment Bank, USALLIANCE Financial and Wheelhouse Credit Union).

When compared to 208 similar length-of-term CDs tracked by that require a similar minimum deposit and are nationally available, American 1 Credit Union’s 3-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.

How the IRA Compares

When compared to 145 similar length-of-term IRA CDs tracked by that require a similar minimum deposit and are available nationwide, American 1 Credit Union’s 5-year IRA APY currently ranks second.

The above rates are accurate as of 10/31/2019.

To search for the best IRA rates, both nationwide and state specific, please refer to our IRA Rates Table page.

Related Pages: Detroit CD rates, Toledo CD rates, Lansing CD rates, Grand Rapids CD rates, 5-year CD rates, IRA CD rates, nationwide deals

Bat Masterson
  |     |   Comment #1
The 3.19% APY at SDFCU is no more. Rate this morning appears to be 2.88% APY. Welcome to November. :-(

Three handle CD APYs have become scarce as hen's teeth.

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