I was notified this morning that Mountain America Credit Union (MACU) will be lowering the rates on some of its Term Deposits (MACU’s version of CDs) tomorrow. The Term Deposits affected by the rate changes are:
Youth Term Deposit
Youth Term Deposits (YTD) are for members aged 27 and younger. The YTDs have historically had higher APYs than their TD counterparts, and currently offer an additional 24-25 bps. The YTDs only require a $5 (yes, five) minimum opening deposit and additional deposits up to $10k per year are allowed. On the account owner’s 28th birthday, the YTD “automatically renews as a normal term deposit.”
Term Deposit Plus
About 18 months ago, MACU unveiled its 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 a determinant.
Funds can be added at any time, in any amount but,
Each member is limited to $100,000 in any one or combination of Term Deposit Plus accounts.
Early Withdrawal Penalty
The TDPs and YTDs 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 more than 12 months and less than 48 months, the penalty may equal 180 days dividends on the full amount of the term deposit.
The bolded “on the full amount” is an edit on my part to ensure it’s not ignored. The penalty is not based on the amount being withdrawn, but on the full amount of the term deposit.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. In the past year, the FOM has expanded, with the residents of Boise, Elmore, Gem, Owyhee, and Valley Counties in Idaho also qualifying 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 97 full-service branches located in Arizona (5), Idaho (15), New Mexico (2), Nevada (4) and Utah (71).
Credit Union Overview
Mountain America Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.30% (excellent) based on December 31, 2018 data. In the past year, MACU has increased its total non-brokered deposits by $984.61 million, an excellent annual growth rate of 17.518%. Please refer to our financial overview of Mountain America Credit Union (NCUA Charter #24692) for more details.
Founded in 19934, Mountain America Credit Union was originally known 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. MACU merged with the Utah State Credit Union in 1988, becoming 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 2018, when Dugway Federal Credit Union (Utah) became part of the MACU family. Mountain America Credit Union is currently the 17th largest credit union in the country, with more than 796,000 members and assets in excess of $8.2 billion.