At the end of March, USALLIANCE Financial (USALLIANCE) raised the rates on its 9- and 18-month Certificates, making both the top nationally available APYs in their respective length-of-term categories.
Good news – the 9-month Certificate has increased to 2.12% APY. Not so good news – the 18-month Certificate has fallen to 2.32% APY. The 9-month added 10 bps, while the 18-month dropped by 21 bps. The minimum opening deposit is $500, with no stated balance cap.
|2.32%||$500||-||USALLIANCE Financial||18 Month CD|
|2.12%||$500||-||USALLIANCE Financial||9 Month CD|
As stated in USALLIANCE’s Certificate Accounts Disclosure, the Early Withdrawal Penalty reads as follows:
If your Certificate Account has an original maturity date of less than 18 months,
the early withdrawal penalty will equal 180 days dividends on the amount withdrawn.
If your Certificate Account has an original maturity date of 18 months or longer,
the penalty amount will equal 360 days of dividends on the amount withdrawn.
According to the Certificate Accounts Disclosure, the ability to withdrawn principal before maturity is not necessarily a given.
You may make withdrawals of principal on a Certificate Account
at the discretion and approval of USALLIANCE Financial.
Accessing Maturing Funds
USALLIANCE Certificates have a grace period of seven calendar days, beginning on the maturity date. While seven days is on the short side, USALLIANCE has provided an easy method for accessing maturing funds.
Transfer Upon Maturity: If prior to maturity you elect to redeem your Certificate Account or the Credit Union does not automatically renew your account, the entire balance will be automatically transferred to your Share Management Checking, Share Management Savings, STAR Account or MyLife Account (Checking or Savings) for easy access. Please note: Jumbo Certificates do not renew automatically.
Once the funds are in a checking or savings account, an ACH transfer can be initiated from another bank.
Right To Call
In previous blog posts, I have cited USALLIANCE’s “right to call” any of its Certificates early, which according to USALLIANCE, has never been exercised. Nonetheless, the “right to call” is spelled out in the Certificate Accounts Disclosure, and reads as follows:
The Credit Union has the right to call or redeem Certificate Accounts early. To call or redeem your Certificate Account early, the Credit Union will provide 60 days written notice to you. Should the Credit Union exercise this option, your Certificate Account will be redeemed without penalty on the day specified in the notice, and the entire balance, including earned dividends, will be automatically transferred to your Share Management Checking, Share Management Savings, STAR Account or MyLife Account (Checking or Savings) for easy access.
Headquartered in Rye (Westchester County), New York, USALLIANCE Financial's field of membership (FOM) is wide and varied, providing almost any U.S. citizen or resident alien, with a valid Social Security number, a way to join.
The first page of USALLIANCE's online application details the various ways to join.
Easy Membership Requirement: The ninth option (associations or charitable organizations) listed under "I Qualify For Membership Because," lists eleven organizations and associations that can be joined by anyone.
- American Consumer Council (ACC)
- Arc of Westchester
- Council of Community Service
- New York Historical Society Museum and Library
- The Rye Arts Center
- St. Thomas Orchestra of Mamaroneck
- Sullivan ARC (Sullivan County residents only)
- The Bill Fish Foundation
- Tread Lightly!
- Unite Here
The tenth option allows you to join USALLIANCE and any of five named associations, including ACC, simultaneously.
By selecting one of the associational membership options below, which entitles me to membership with USAlliance Financial, I authorize USAlliance to submit my membership request to my chosen association.
Residency: Individuals who live, work, or worship in the Massachusetts counties of Barnstable, Essex, Middlesex, Norfolk, Plymouth, Suffolk, or Worcester are eligible for membership. In addition, individuals who live, work, or worship in the city of West Haven, Connecticut, and qualifying districts in Manhattan, Mount Vernon, and The Bronx, also qualify.
Employment: Employees of over 175 companies are eligible to join, including employees or retirees of the state or local government in the New York counties of Columbia, Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster, or Westchester.
Education: Registered students, staff, and faculty members of Columbia University and Manhattanville College (both in NYC) qualify for membership, as do members of Columbia University’s Alumni Association.
Religious Affiliation: Members of ten named houses of worship in the New York counties of Bronx, Sullivan, and Westchester are eligible to join.
- Connecticut – West Haven (2)
- Massachusetts – Cambridge, Danvers, Malden, and Medford
- New York – Bronx, Ferndale, Napanoch (2), New York City (2), Otisville, Port Chester, Purchase, Rye, Somers, Wallkill, White Plains, and Woodbourne
Credit Union Overview
USALLIANCE Financial has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 7.46% (excellent) based on December 31, 2017 data. USALLIANCE has an average capitalization level (8.37%), the result of holding $1.38 billion in assets with $115.3 million in equity. Please refer to our financial overview of USALLIANCE Financial (NCUA Charter # 17587) for more details.
USALLIANCE Financial was chartered in 1966 as a credit union for IBM employees. Formerly known as USAlliance Federal Credit Union, the Credit Union did a rebrand in September 2015 to "help drive home all that we have to offer to potential members." From humble beginnings in the company's basement cafeteria, USALLIANCE is currently the 15th largest credit union headquartered in New York State, with more than 101,700 members and assets in excess of $1.3 billion.
How the Certificates Compare
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are nationally available, USALLIANCE Financial’s 9-month Certificate Account APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.12% APY||9-Month Certificate Account||USALLIANCE Financial|
|1.96% APY||9-Month CD||Melrose Credit Union*|
|1.80% APY||High Yield 9-Month CD||Ally Bank|
*Note: Melrose Credit Union is currently operating under an NCUA conservatorship.
When compared to the 166 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are nationally available, USALLIANCE Financial’s 18-month Certificate Account APY currently ranks fourth.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.45% APY||18-Months Online Time Deposit||My eBanc|
|2.40% APY||18-Month CD||Live Oak Bank|
|2.36% APY||18-Month CD||Colorado Federal Savings Bank|
|2.32% APY||18-Month Certificate Account||USALLIANCE Financial|
The above rates are accurate as of 4/17/2018.
To look for the best CD rates, both nationwide in state specific, please refer to our CD Rates Table page.