American 1 Credit Union 5-Year IRA CD Is A Rate Leader

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Deal Summary: 5-year IRA CD, 2.27% APY, $50 min deposit; 5-year CD, 2.00% APY, $500 min deposit.

Availability: Easy membership requirement.

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.26%$50-American 1 Credit Union5 Year IRA (Traditional, Roth, CESA)
1.00%$500-American 1 Credit Union5 Year CD
Rates as of July 3, 2020.

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The penalty we may impose will equal 90 days dividends on the amount withdrawn plus the amount of dividends earned on the amount withdrawn in excess of the amount of dividends that would have been earned at the Savings/Share account rate.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

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

Comments
Kaight
  |     |   Comment #1
Am I correct in assuming this IRA CD is an add-on CD requiring $50 to get going, similar to the old (now expired) NFCU IRA CD deal?
alan1
  |     |   Comment #2
The add-on provision re the IRA CD, according to the credit union's Truth in Savings Disclosure, is as follows:

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.)
Kaight
  |     |   Comment #3
Good catch, alan 1. The way I plan to use my NFCU IRA add-on CD is, when my existing IRA CD (not at NFCU) matures, to move all funds to NFCU. This is unrelated to any kind of "yearly allowed" add on. It appears this sort of "funds dump transfer" would not be allowed at American 1 CU. But it's difficult to be certain. Am happy to be with NFCU.
alan1
  |     |   Comment #4
re #3 -- I agree with your reading of the add-on clause. An "amount allowed for that year" would seem to refer to the annual maximum IRA contribution.

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.
P_D
  |     |   Comment #5
"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."

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.
kcfield
  |     |   Comment #9
I agree. Craps should be reserved for the casino. One should be able to lock in rates immediately, rather than having to worry about a rate reduction when the funds are actually received. I wonder if they are trying to discourage out of area investments.
P_D
  |     |   Comment #6
I've just been told that USAA is closing out all of its IRA accounts. Is this OT? Trying to provide timely information to those who read the blogs.
Choice
  |     |   Comment #7
USAA WEB

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.
kcfield
  |     |   Comment #8
One of the important things to note here is that while banks and credit unions usually have the same rates for regular and IRA CDs, that is not always the case; sometimes IRA rates are higher as they are here. So, it is always worth checking both rates if one is open to either.
Rob5TCP
  |     |   Comment #10
5 year rates DROPPED IN HALF last night.
Other rates lowered substantially as well.
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...

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