Over the weekend, Mountain America Credit Union (MACU) raised the rate on its 5-year Term Deposit (3.25% APY). The latest 10 bps increase has put the 5-year Term Deposit’s APY near the top, once again. The minimum deposit is $500, with no stated balance cap.
Thanks to DA reader, alan1, for his Forum post about MACU.
Term Deposit Plus
Last August, MACU introduced Term Deposit Plus (TDP) accounts, 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 important.
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 Penalty (EWP) as the regular Term Deposits, but the potential severity of MACU's EWP should not be overlooked.
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That's right - the penalty is not based on the amount being withdrawn, but on the full amount of the term deposit.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.
Headquartered in West Jordan, Utah, Mountain America Credit Union's field of membership (FOM) provides 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 the Utah counties of Salt Lake, Suchesne, Wasatch (census tract 940300), or Unitah (census tract 940100 or 940200) are eligible to join. Since I last wrote about MACU, the FOM has expanded and the residents of Boise, Elmore, Gem, Owyhee, and Valley Counties in Idaho also qualify for membership.
Relationship: Family members (parent, child, spouse, sibling, grandparent, grandchild, including step- and adopted) of an existing member are membership eligible. Individuals “living with or under the same roof” with current MACU membership are now also welcome to apply.
Affiliation: Employees or volunteers of an MACU SEG or Affiliated Association also qualify.
Joining Mountain American Credit Union and/or opening a Term Deposit can be done online, or at any of 93 full-service branches located in Arizona (4), Idaho (15), New Mexico (2), Nevada (4) and Utah (68).
Opening a Term Deposit Plus account is a little more time consuming. DA reader, PeterLindstrom, noted in a comment on an earlier blog post,
I remembered reading here on DepositAccounts that Term Deposit Plus accounts couldn't be opened online, so I called them (normal business hours during the week). It was fairly painless to open the account that way. Now that I'm a member with a login, I could use their online chat support to create the second account.
Credit Union Overview
Mountain America Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.35% (excellent) based on March 31, 2018 data. In the past year, MACU has increased its total non-brokered deposits by $828.08 million, an excellent annual growth rate of 15.8%. 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. In February 2015, Idaho-based Les Boise Credit Union joined forces with MACU, extending the Credit Union’s footprint into the Boise area. The latest merger occurred in April, when Dugway Federal Credit Union (Utah) became part of the MACU family. Mountain America Credit Union is currently the 18th largest credit union in the country, with more than 746,500 members and assets in excess of $7.5 billion.
How the Term Deposit Compares
When compared to the 174 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 second.
How the Term Deposit Plus Compares
The 5-year Term Deposit Plus (TDP) 3.25% APY is an excellent rate, although the $100k balance cap tempers its competitiveness. 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.
In 2016, 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. If the TDP didn't have a maximum deposit of $100k per member, it would be a perfect add-on CD.
The above rates are accurate as of 7/2/2018.
To look for the best CD rates, both nationwide and state-specific, please refer to our CD Rates Table page.