It’s a new month, which always translates into new rates and new deals. Mountain America Credit Union (MACU) is following the new rates path by increasing the APYs on several of its Term Deposits (MACU’s version of a CD). In early October, MACU boosted the rate on its 3-year Term Deposit (TD) by 50 bps, giving it an APY that equaled that of the 5-year TD. This month, it’s the 5-year TD’s turn to shine with a new 3.51% APY. Yesterday’s increase of 16 bps makes the 5-year TD a rate leader, once again. Any TD can be opened with a $500 minimum deposit, and there is no balance cap specified.
Youth Term Deposit
MACU also offers Youth Term Deposits (YTD) for members aged 27 and younger. The YTDs have historically had higher APYs than their TD counterparts, and currently offer an additional 25-26 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
More than a year 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, in any amount, can be added at any time, but there is a major add-on deposit limitation:
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 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That's right - the penalty is not based on the amount being withdrawn, but on the full amount of the term deposit.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.
Thanks to DA reader, alan1, for his continued Forum posts about MACU.
Headquartered in West Jordan, Utah, Mountain America Credit Union's field of membership (FOM) includes 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 95 full-service branches located in Arizona (5), Idaho (15), New Mexico (2), Nevada (4) and Utah (69).
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 4.72% (excellent) based on June 30, 2018 data. In the past year, MACU has increased its total non-brokered deposits by $802.43 million, an excellent annual growth rate of 14.85%. 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. 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, 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 754,400 members and assets in excess of $7.7 billion.
How the Term Deposits Compare
When compared to 191 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, Mountain America Credit Union's 5-year Term Deposit APY currently shares the top spot with United States Senate Federal Credit Union’s 60-month Share Certificate.
When compared to 215 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, Mountain America Credit Union's 3-year Term Deposit APY currently ranks first.
How the Term Deposit Plus Compares
Although limited by the $100k balance cap, the 5-year (3.51% APY) and 3-year (3.35% APY) TDP accounts still offer excellent rates. The TDP’s add-on option transforms it 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 withdrawals on the other.
In Searching for the Elusive Add-On CD, DA contributor, Charles Rechlin described the ideal features of an add-on CD, and MACU’s TDP possesses three out of the four features. If the TDP wasn't limited by the $100k maximum deposit, it would be a perfect add-on CD.
The above rates are accurate as of 11/2/2018.
To look for the best CD rates, both nationwide and state-specific, please refer to our CD Rates Table page.