UPDATE 12/16/17: The rates for the 5-year Term Deposit and Term Deposit Plus have fallen to 2.60% APY.All other features are the same. This is according to a MIDFLORIDA representative.
As DA reader, cumulus, noted in a recent Forum post, Utah-based Mountain America Credit Union (MACU) has raised the rate on its 5-year Term Deposit to 2.80% APY. The minimum deposit is $500, with no stated balance cap.
The Term Deposits are also available as IRAs, earning the same APYs with the same funding requirements.
DA readers who follow the bi-weekly CD Rates Summary have seen MACU’s 5-year Term Deposit at or near the top of the 5-year Nationally Available CDs category for more than two years. This past August, MACU expanded their product line to include Term Deposit Plus accounts (TDP), which are essentially an add-on version of their Term Deposit accounts.
The TDPs earn the same APYs as the Term Deposits, but "make saving for long-term goals easy." The TDP promo page outlines how these new accounts work.
Only $5 to open account Higher dividends earnings than a traditional savings account Funds can be added at any time Terms from 6 months to 5 years Automated monthly deposit of at least $10 required
The minimum $10 automatic monthly deposit can come from another MACU account or from an outside source, such as a direct deposit or a transfer from another financial institution. The operative phrase is “automatic monthly deposit,” with the source of the deposit not a determinant.
Just to be sure, I confirmed with CSR that the $5 opening deposit listed is not a typo. Funds, in any amount, can be added at any time, but,
Each member is limited to $100,000 in any one or combination of Term Deposit Plus accounts.
The TDPs are subject to the same Early Withdrawal Penaltie (EWP) as the regular Term Deposits. While I’ve cited the EWPs in the past, I've never focused on the potential severity. For example,
If your term deposit has an original maturity of 48 months or greater, the
penalty may equal 365 days dividends on the full amount of the term deposit.
That's right - a penalty not on the amount being withdrawn, but on the full amount of the term deposit. It certainly makes a partial withdrawal, particularly a small one, rather expensive.
Many thanks to cumulus for his continued Forum posts.
Headquartered in West Jordan, Utah, Mountain America Credit Union's field of membership (FOM) is based on residency, family relationships, or a relationship with an SEG or Affiliated Association, providing a way for almost anyone with a valid Social Security number to join.
Easy Membership: The American Consumer Council, one of MACU’s Affiliated Associations, can be joined by anyone with a $5 membership fee, and qualifies for MACU membership.
Residency: Residents of Salt Lake County, Suchesne County, Wasatch County (census tract 940300), or Unitah County (census tract 940100 or 940200) are eligible to join.
Relationship: Family members (parent, child, spouse, sibling, grandparent, grandchild, including step- and adopted) of an existing member are membership eligible.
Affiliation: Employees or volunteers of an MACU SEG or Affiliated Association also qualify.
Joining Mountain American Credit Union and/or opening a Term Deposit or Term Deposit Plus Account can be done online, or at any of 92 full-service branches located in Arizona (3), Idaho (15), New Mexico (2), Nevada (4) and Utah (68).
Credit Union Overview
Mountain America Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 5.42% (excellent) based on June 30, 2017 data. In the past year, MACU has increased its total non-brokered deposits by $879.74 million, an excellent annual growth rate of 19.44%. Please refer to our financial overview of Mountain America Credit Union (NCUA Charter #24692) for more details.
Mountain America Credit Union was originally founded in 1934 as the Salt Lake Telephone Employees Credit Union. Following the 1984 merger with the Postal Workers Credit Union, the name was changed to Mountain America Credit Union. In 1988, MACU merged with the Utah State Credit Union and became the second largest credit union in Utah. The most recent merger occurred in February 2015, when Idaho-based Les Boise Credit Union joined forces with MACU, extending the Credit Union’s footprint into the Boise area. Mountain America Credit Union currently has more than 703,000 members with assets in excess of $6.7 billion.
How the Term Deposit Compares
When compared to the 182 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Mountain America Credit Union's 5-year Term Deposit APY currently ranks first.
How the Term Deposit Plus Compares
Comparing the 5-year Term Deposit Plus (TDP) to other similar length-of-term CDs is just stating the obvious: the 2.80% APY is an excellent rate. The TDP’s add-on option transforms this account into a savings account/CD hybrid, which offers a higher rate than any other traditional savings (or money market) account on one hand, but severely limits any withdrawals on the other.
Last year, DA contributor, Charles Rechlin described the ideal features of an add-on CD in his article, Searching for the Elusive Add-On CD. MACU’s TDP has three out of the four features of an ideal add-on CD. The one missing feature is an absence of a maximum balance.
The above rates are accurate as of 11/20/2017.