Mountain America Hikes 5-Year Term Deposit

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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.

Deal Summary: 5-year Term Deposit, 2.80% APY, $500 minimum deposit. 5-year Term Deposit Plus, 2.80% APY, $5 min/$100k max, minimum $10 automatic monthly deposit.

Availability: Easy membership requirement

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    That's right - a penalty not on the amount being withdrawn, but on the full amount of the term deposit.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.

    Availability

    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.

    To look for the best CD rates, both nationwide and state-specific, please refer to our CD rates table or our Rates Map page.

    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

    Comments
    thowellIII
    thowellIII   |     |   Comment #1
    A heads up: If you already have an account with Mountain America (and possibly if you don't; I did not ask about that possibility), you will need to call to open a Term Deposit Plus account. The online application does not support that account type (presumably because the CU needs to set up the automatic monthly deposit).
    Chickenfoots
    Chickenfoots   |     |   Comment #2
    3% or bust!
    MACU Me Thinks Not
    MACU Me Thinks Not   |     |   Comment #3
    If you ever plan on opening an IRA with this place, do it when you first become a member. If you don't, they make you jump thru the vetting hoops again. The first story I got was that they were going to do another credit check thru their loan department! When I pointed-out that IRA's aren't loans, another CSR said that they'd just have to go thru the Chex System. To get an IRA? When I've been a member for over 5 years? That's just nuts.

    Another thing, whenever you talk to a CSR about your account, they want your full SS#. Say what? I've NEVER had any other place ask for that from an established customer. That's even in a chat session! Yup, like I want to do that. I know that credit unions sometimes have strange procedures. But this place is a special kind of crazy!

    Even with that 2.8% offer, I'll probably be taking my money elsewhere just because they are so insanely hard to deal with.

    Also, if you don't live in Utah, don't use the number that Ken has posted. It's not a toll-free number.
    They're toll-free number is 1-800-748-4302.
    Anonymous
    Anonymous   |     |   Comment #4
    Correction: Association to join for eligibility is the American Consumer Council (not American Credit Council, as above).
    Ann
    Ann   |     |   Comment #6
    Oh, good! That's the one I already joined for free for another credit union, and you can too: use promo code 'consumer'.
    Ken Tumin
    Ken Tumin   |     |   Comment #8
    Thanks. The post has been corrected.
    Easy
    Easy   |     |   Comment #5
    I had a term deposit plus a few months old with only a little money, just converted to the higher rate. Took 5 min, nice people there
    Anonymous
    Anonymous   |     |   Comment #10
    How did you do the conversion? Did you have to pay a penalty, or did they just increase your rate for free?
    Jim Davis
    Jim Davis   |     |   Comment #7
    Ken , you might appreciate this. I was reading this post, and saw the link to Charles Rechlin article, so I pulled it up.

    In there he talks about the Live Oak 5 year CD. I opened one, on 3/16/15, and probably because of the confusion in the documents he speaks of (or maybe just creeping senility) , I was not aware of the grandfathered add on feature. So I've missed out on 2 years of 2.5 on quite a bit of cash.

    Have about 2.5 years to go , so I'll probably take advantage of it now , but show's to go ya, even the savviest among us are prone to hiccups.
    deplorable 1
    deplorable 1   |     |   Comment #9
    Check out the youth 5 year CD @ 2.85%. Strange terms as it automatically renews until the age of 28. This could be a way to stop your kids from impulsively blowing all their savings when they turn 18 and are still young and dumb. Looks like a pretty good rate as well as being a add-on CD to boot. This looks interesting as a teaching tool about delayed gratification from a parents perspective.
    astroval
    astroval   |     |   Comment #11
    Kudos for MACU. I just joined via phone and opened the 5 year Term Deposit Plus. The CSR couldn't have been nicer or knowledgeable. Very patient and answered every question in detail.
    For those who aren't aware there are several easy ways to do the $10 automatic monthly deposit. I decided on having them pull $180 from my local bank and park it in my Share Savings. They will automatically pull the required monthly $10 and transfer to my TDP. In 12 months I will have them pull another $180 from my local bank for the following year.
    I also learned that once your interest accrues over the $100K limit you must move that interest (no penalties for that). I will probably have them transfer into my Share Savings. This was good to know as my old 3.04% add-on cd from NWFCU has different rules upon reaching maximum (also 100k).. NWFCU allows for keeping any extra interest in (at least) that original CD.
    Hope this helps someone.
    astroval
    astroval   |     |   Comment #12
    FYI in case anyone asks Re: NWFCU -- that add-on cd was from several years ago. Mine will expire in late 2018.
    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.

    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.

    Continue Reading
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    Availability: Easy membership requirement.

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    Residents of Salt Lake and Duchesne counties, and portions of Wasatch and Uintah counties, Utah. Also, employees and volunteers of hundreds of SEG (including the ACC).

    Mountain America Credit Union (MACU) has raised the rate on its 5-year Term Deposit (2.30% APY). The minimum deposit is $500, with no maximum balance cap, and the Early Withdrawal Penalty (EWP) is 365 days interest.

    The 5-year Term Deposit (CD) is also being offered as an IRA (Traditional and Roth) at the same APY and with the same funding...

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