Deal Summary: 36-month Share Certificate, 2.00% APY base, $500 minimum deposit; one-time Bump Option or up-front additional 0.10% rate increase.
American United Federal Credit Union (America United) started out the month by raising the rate on its 36-month Share Certificate (2.00% APY) by 50 basis points. The minimum opening deposit is $500, with no stated balance cap. The 36-month Share Certificate offers a Bump Option or an up-front 0.10% rate increase.
I wrote about American United’s 60-month Share Certificate (2.30% APY) last July; the current APY has been in effect from more than a year. The 60-month Share Certificate also offers the same Bump Option/0.10% rate increase.
As stated on American United’s Deposit Rates page,
36 to 60 months regular certificates have a “Bump Option,” allowing a
one-time rate change (to current published rates) during the life of the certificate.
The bump can be waived up front in exchange for an additional 0.10% rate increase.
Bump Option? Up-front additional 0.10% rate increase? If you’re not sure which to choose, you may find DA guest contributor, Charles Rechlin’s blog post on Step-Up and Step Rates CDs helpful.
The 36-month Share Certificate is also available as an IRA (Traditional, Roth, CESA, and SEP), earning the same APY with the same funding requirements.
As stated in the Truth In Savings document (attached to online application), the Early Withdrawal Penalty reads as follows:
The penalty we may impose will equal 180 days
dividends on the amount withdrawn subject to penalty.
Headquartered in West Jordan, Utah, American United Federal Credit Union’s field of membership (FOM) is primarily residency based.
Residency: Individuals who live, work, worship, volunteer, attend school, or “associate” in Salt Lake and Tooele Counties are eligible to join.
Employment: Employees, volunteers, and relatives of employees of more than 20 SEGs qualify for membership. A complete list of these SEGs is on the first page of the online application.
Other: Members, tribal administrators, and employees of the Morongo Band of Mission Indians qualify for membership.
Joining American United and/or opening a CD can be done online, or at any of eight Utah branches located in Draper, Kearns, Salt Lake City (4), Sandy, and West Jordan, or the sole California branch in Cabazon.
Credit Union Overview
American United Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 5.41% (excellent) based on September 30, 2016 data. In the past year, American United has increased its total non-brokered assets by $15.97 million, an excellent annual growth rate of 10.69%. Please refer to our financial overview of American United Federal Credit Union (NCUA Charter # 8187) for more details.
American United Federal Credit Union is currently Utah’s 13th largest credit union, with more than 19,100 members and assets in excess of $190 million. Founded in 1952 as the Fort Douglas VA Hospital Federal Credit Union, American United has grown to become a “Family of Credit Unions,” through seven mergers that occurred between 2007 and 2014. The credit unions that have joined American United are Blues Plus FCU, First Californian, Big Valley FCU, VAF FCU, Credit Union One, Newspaper Employees CU, and Deseret New Employees CU.
How the Share Certificate Compares
When compared to the 247 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available within the FOM, American United Federal Credit Union's 36-month Share Certificate APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.10% APY||36-Month Share Certificate (w/0.10% increase)||American United Federal Credit Union|
|1.85% APY||37-Month CD Special||RTN Federal Credit Union|
|1.81% APY||3-Year Yield Pledge CD||EverBank|
The above rates are accurate as of 3/6/2017.