Mountain America CU Unveils Term Deposit Plus With Add-On Feature


Deal Summary: Term Deposit Plus Accounts (an add-on version of the regular Term Deposits earning the same APYs), $5 min/$100k max, minimum $10 automatic monthly deposit.

Availability: Easy membership requirement.

Utah-based Mountain America Credit Union (MACU) has expanded their product line to include Term Deposit Plus accounts (TDP), which are essentially an add-on version of their Term Deposit accounts.

2.60%-$100kMountain America Credit Union5 Year Term Deposit Plus
2.10%-$100kMountain America Credit Union4 Year Term Deposit Plus
1.80%-$100kMountain America Credit Union3 Year Term Deposit Plus
1.40%-$100kMountain America Credit Union24 Month Term Deposit Plus
1.30%-$100kMountain America Credit Union18 Month Term Deposit Plus
1.25%-$100kMountain America Credit Union12 Month Term Deposit Plus
Accounts mentioned in this post. Rates as of October 23, 2017.

The TDPs earn the same APYs as the Term Deposits, but "makes 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 anytime
  • 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 limited.

    CSR confirmed 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 Penalties (EWP) as the regular Term Deposit accounts. While I’ve cited the EWPs in the past, I've never pointed out 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    That's right - a penalty not on the amount being withdrawn, but on the full amount of the term deposit. That certainly puts a damper on a partial withdrawal, particularly a small one.

    Thanks to DA reader, alan1, for his Forum post about MACU’s new Term Deposit Plus accounts.


    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 Credit 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 Plus Account can be done online, or at any of 91 full-service branches located in Arizona (3), Idaho (15), New Mexico (2), Nevada (4) and Utah (67).

    Credit Union Overview

    Mountain America Credit Union has an overall health grade of "A" at, with a Texas ratio of 4.90% (excellent) based on March 31, 2017 data. In the past year, MACU has increased its total non-brokered deposits by $772.45 million, an excellent annual growth rate of 17.29%. 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. Today, Mountain America Credit Union has nearly 680,000 members with assets in excess of $6.4 billion.

    How the Term Deposit Plus Accounts Compare

    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 quite some time. Comparing the 5-year Term Deposit Plus to other similar length-of-term CDs is just stating the obvious: the 2.60% APY is a very good rate. The TDP’s add-on option transforms this account into a savings account/CD hybrid that 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, 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 feature it doesn’t have is the absence of a maximum balance.

    The above rates are accurate as of 8/16/2017.

    Related Pages: Phoenix CD rates, Boise CD rates, Idaho Falls CD rates, Twin Falls CD rates, Salt Lake City CD rates, Albuquerque CD rates, Reno CD rates, Las Vegas CD rates, 5-year CD rates, nationwide deals

    aaa   |     |   Comment #2
    Looks like they are careful to set a maximum limit, unlike the fools of "Valor".
    bbb   |     |   Comment #4
    Valor wasn't alone in not having a cap (though with their very small size, it wasn't a good idea). Darby Bank's Add-On didn't have a limit (they went under, but for reasons caused well before their CD, Inter National Bank's (Texas) Add-On didn't have a limit, nor did Wamu, Fremont Savings, and most others. I realize this list has a lot of banks that have gone under, but again, unlike Valor, the no-cap Add On CD wasn't the cause of it (where it was with Valor). If I remember right, 10 years ago, Add-On CDs were somewhat common, and most places never put caps until recently. Instead, over the last couple years they've been very rare, and those offered (Navy, NWFCU, here) have caps.
    bbb   |     |   Comment #3
    I do not believe Term Deposit Plus Account can be opened on-line. I am member and walked thru the application pages. There is no option to open Term Deposit Plus Account on web-site.
    Ken Tumin
    Ken Tumin   |     |   Comment #6
    According to a MACU CSR, existing members should be able to open a TDP via in-branch, online, or by phone. If you don’t see it in the online application, I recommend calling MACU and try to open it by phone.
    MACU Member
    MACU Member   |     |   Comment #11
    I did not see the option either. I was able to open a 3 year and a 5 year account through chat after I had enough money in my savings to fund the initial deposits.
    jennifer   |     |   Comment #5
    I've never been so confused.
    Jon   |     |   Comment #7
    " This is at the bottom of the website..."Each member is limited to $100,000 in any one or combination of Term Deposit Plus accounts." When I called the service rep he told me I could open as many as I want but I can't open it for more than $100k but then I can add up to a limit of $250k. I asked him if he is sure and he said he was reading it from their policy that he was given, I then asked him if he had seen what is written on the website and he said he was looking at it while we were talking and making a notification to see if it can be changed. Also website states have to have an automated monthly deposit of $10, I asked him if the monthly dividend added to the CD would count and he said yes.
    NOTLIKELY   |     |   Comment #8
    Not sure whether they mean that if you do an automated monthly add on, it is required to be at least a $10 minimum amount or you are required each month to make an automated add on of at least $10? Anyway, where would these automated payments be drawn from since they do not accept ACH transfers from outside accounts?
    jennifer   |     |   Comment #9
    So what happens if you open one of these certificates and then stop the automated monthly deposit before the term is up?
    I mean, what on earth would they do?
    Kaight   |     |   Comment #10
    It's anyone's guess at this point. I mean, conjure your most draconian penalty, multiply by ten, and you're there!! The entire deal seems to me rather a mess considering there is a $100k maximum anyway; lots of smoke . . . only a tiny fire. Much ado about not a whole heck of a lot.
    Luvcd   |     |   Comment #12
    And, of course you asked and then documented it?
    Jon   |     |   Comment #13
    I opened a regular 5 year CD with them today for the 2.6%, no add on. Then my wife and I both opened a 5 year deposit plus where you can add on to it but only up to $100k and I had to set up an automatic monthly deposit from my share account, couldn't do my Chase account. Just opened those 2 with $5k so that leaves $94,600 more I can put in to each of them if rates drop when I have more CDs coming in. $10 a month for 60 months is $600 so the most you can deposit other that that is $99,400.00... still might come in handy, might not. The service center rep was wrong, you can not use your monthly interest from the CD as an automated deposits. Btw, they weren't totally sure at the branch I went to but they found out.
    NOTLIKELY   |     |   Comment #14
    5 years of $10 per month automatic deposits is a total of $600. So did you just put $600 in your share account to feed the automatic deposits each month?
    Jon   |     |   Comment #15
    2 CDs so $1200 not $ can do it anyway you want, send a check, make a deposit at a shared branch, transfer from another account in any time frame you want so that the money is in your share account when they pull can add it monthly, yearly or whenever but yes I just put it all in my share account. Only pays .10% but I have money laying around at a couple places that earn .10% so no biggie.
    bbb   |     |   Comment #16
    Looks like the interest rates will keep rising slowly for next few years, but one never knows, so opening with minimum is sort of hedge against sustained drop in interest rates or very very very slow rise. If such a thing were to occur one can max out and at least have some funds earning a better rate.

    Its a hassle for a small limit they have put, but we all know what happens when limitless deposits are permitted!
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