Luso American Union (Luso American) has two very competitive long-term CDs – 4-year CD (1.41% APY) and 5-year CD (1.61% APY). The minimum opening deposit is $500, with no stated balance cap.
Both CDs are also offered as IRA CDs (Traditional and Roth), earning the same APYs with the same deposit requirements.
Luso American’s Savings Rates page concerned me because of the following statement:
The Annual Percentage Yield (APY) and the interest
rates quoted are accurate as of January 01, 2019.
CSR assured me that the rates listed are up-to-date. The “accurate as of” date on the Savings Rates page reads “January 02, 2019” simply because the most recent rate changes occurred about two years ago. To say that the 4- and 5-year CD rates have remained steady doesn’t adequately describe the APY longevity: the long-term CD rates haven’t changed in more than seven years.
According to CSR, the Early Withdrawal Penalty for the 4- and 5-year CDs is quite mild: 6-months of dividends on the amount being withdrawn, with partial withdrawal allowed.
Massachusetts Share Insurance
Luso American Credit Union also maintains excess share and deposit insurance through Massachusetts Share Insurance Corporation (MSIC) fully insuring deposits in excess of the NCUA limits.
MSIC now fully insures excess shares and deposits above the federal insurance limit
of $250,000 at ALL of member credit unions. As a result of the new law, MSIC will now
fully insure excess shares and deposits without limits that exceed NCUSIF coverage.
Headquartered in Peabody, Massachusetts, Luso American Credit Union’s field of membership (FOM) is residency-based, with individuals (18 years or older) who live or work in Essex County eligible for membership.
According to the COVID-19 Update page,
In order to enter the credit union, you MUST wear a mask. Any member, employee or person who is entering the credit union must have a protective face covering over their nose and mouth or they will not be allowed entry into the building.
CSR stated the only one customer is allowed inside a branch lobby at a time. She suggested calling ahead to set an appointment would be helpful.
A minimum opening deposit of $25 in a Regular Savings account is required to established a Luso American membership.
CDs cannot be opened online. CSR suggested that once an online application has been approved and the Regular Savings account has been funded, opening a CD can be done over the phone. CDs can also be opened in-branch by appointment.
Credit Union Overview
Luso American Credit Union has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 1.95% (excellent) based on September 30, 2020 data. In the past year, Luso American has increased its total non-brokered deposits by $11.56 million, an excellent annual growth rate of 14.45%. Please refer to our financial overview of Luso American Credit Union (NCUA Charter # 67890) for more details.
Founded in 1960, Luso American Credit Union is a relatively small credit union, having about 8,000 members and $106+ million in assets. Unfamiliar with the term “Luso American?” Portuguese immigrants who settled along the New England coast in the late 19th century were known as "Luso-Americans." Why? Portugal was called “Lusitania” when it was part of the Roman Empire (circa 2nd century BC).
Massachusetts was a choice location for Portuguese immigrants because of the availability of low-skill jobs. With little education and even less knowledge of the English language, Portuguese immigrants took advantage of the many jobs available in the textile industry. Portuguese-Americans are currently the eighth largest ethnic group in Massachusetts, with nearly 300,000 residents claiming Portuguese ancestry.
How the CDs Compare
When compared to the similar length-of-term CDs tracked by DepositAccounts.com, which are available within the FOM and require a similar minimum deposit, Luso American Credit Union's 4-year CD APY currently ranks first.
When compared to the similar length-of-term CDs tracked by DepositAccounts.com, which are available within the FOM and require a similar minimum deposit, Luso American Credit Union's 5-year CD APY currently ranks first.
The above rates are accurate as of 2/5/2021.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.