USALLIANCE Financial 24-Month CD Special Jumps To 3.00% APY

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Deal Summary: Certificate Specials – 24-month (3.00% APY), 36-month (3.25% APY), $500 minimum deposit.

Availability: Easy membership requirement.

In early April, USALLIANCE Financial (USALLIANCE) broke a two-year rates ceiling when it added a 48-month Certificate Special earning 2.00% APY. While I thought there would probably be some rate changes next week, I didn’t expect to see any dramatic rate changes going into the Memorial Holiday weekend; I was wrong.

USALLIANCE has just boosted the 24-month Certificate Special rate to 3.00% APY, more than doubling the previous 1.25% APY. (The last time we saw a nationally available 2-year CD earning 3.00% was in June 2019.)

The other USALLIANCE eye-catching rate belongs to the 36-month Certificate Special, which now earns 3.25% APY. The 36-Certificate Special previously earned 1.25% APY when it was part of the product line in November 2020.

The Certificate Specials can be opened with a $500 minimum deposit, with no stated balance cap.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.50%$500-USALLIANCE Financial24 Month Certificate Special
2.25%$500-USALLIANCE Financial36 Month Certificate Special
Rates as of June 24, 2022.

USALLIANCE Certificate Specials are limited-time offerings, usually available for at least a month, with different term lengths cycling in and out of the product line during the year. In mid-2021, USALLIANCE offered six different Certificate Specials, but the USALLIANCE website currently lists four Certificate Specials. The other two Certificate Specials are the 18-month (1.95% APY, up by 70 bps) and the 11-month No Penalty CD (1.00% APY, down by 25 bps).

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.95%$500-USALLIANCE Financial18 Month Certificate Special
1.00%$500-USALLIANCE Financial11 Month No Penalty CD
Rates as of June 24, 2022.

As stated in USALLIANCE’s Certificate Accounts Disclosure, the Early Withdrawal Penalty (EWP) 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early withdrawal penalty will equal 180 days dividends on the amount withdrawn.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the penalty amount will equal 360 days of dividends on the amount withdrawn.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 withdraw any of the principal before maturity is not necessarily guaranteed.

You may make withdrawals of principal on a Certificate
Account at the discretion and approval of USALLIANCE Financial.

Things You Need To Know

The following information has become standard in USALLIANCE blog posts. It is definitely worth the read, whether you regularly read USALLIANCE blog posts or are a casual browser.

    POD Beneficiary

    USALLIANCE allows unlimited POD beneficiaries to be named, but Social Security numbers are required for each named beneficiary, which can be problematic for some investors. While not requiring Social Security numbers was more common in the past, asking for a beneficiary's Social Security number seems to have become the norm. In some states, like Ohio, requiring an SS# for beneficiaries is proscribed by state law.

    Accessing Maturing Funds

    USALLIANCE Certificates have a grace period of seven calendar days, beginning on the maturity date, although “all term accounts are available for a range of maturity days to permit you to schedule redemption for a business day.” 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

    With rates bounding upward, it’s important to mention USALLIANCE’s “right to call” any of its Certificates before maturity. While that may sound a bit worrying, USALLIANCE states that option 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.

Availability

Headquartered in Rye (Westchester County), New York, USALLIANCE Financial's field of membership (FOM) provides a way for almost any U.S. citizen or resident alien (with a valid Social Security number) to join.

While USALLIANCE didn’t provide membership eligibility anywhere on its website (other than part of the online application), the Membership Acknowledgement and Certification document provides detailed information.

Easy Membership Requirement: Joining any of five partner associations/charitable organizations qualifies for USALLIANCE membership.

I want to become a member of one of the following USALLIANCE partner
associations and authorize USALLIANCE to submit my membership request to:

  • Tread Lightly!
  • Council of Community Service
  • WARC
  • New-York Historical Society
  • SullivanArc

Residency: Individuals who live, work, worship, or regularly conduct business in the Massachusetts counties of Barnstable, Essex, Middlesex, Norfolk, Plymouth, Suffolk, or Worcester are eligible for membership. In addition, individuals who live, work, worship, or regularly conduct business in the city of West Haven, Connecticut, and qualifying districts in Manhattan, Mount Vernon, and The Bronx, are welcome to join. Following the 2018 assumption of First Jersey Credit Union, individuals who live, work, worship, or regularly conduct in the New Jersey counties of Bergan and Passaic qualify for membership.

Employment: Employees of more than 175 companies are eligible to join, including employees or retirees of the state or local government in the New York counties of Columbia, Dutchess, Green, 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.

Joining USALLIANCE and/or opening a Certificate Special can be done online. While opening a Certificate Special can also be done in-branch, the COVID-19 Updates page states that the Cambridge, Massachusetts branch location continues to be temporarily closed, but the following branch lobbies are open to walk-in traffic (without an appointment):

  • VA Hospital, West Haven, Connecticut
  • Atwood Place, West Haven, Connecticut
  • Station Landing, Medford, Massachusetts
  • Corporate Drive, Wayne, New Jersey
  • East 179th Street, Bronx, New York
  • Route 52, Hopewell Junction, New York
  • Boston Post Road, Port Chester, New York
  • Route 52, Woodbourne, New York
  • Walmart, 7500 Route 209, Napanoch, NY

Unlike the vast majority of credit unions, USALLIANCE does not have a Share Account that must be opened with a small deposit to establish membership. The only deposit requirement is a minimum $1 deposit in the account you wish to open, but having either a checking or savings account is required for membership.

USALLIANCE participates in the CO-OP Shared Branching network, providing members access to more than 5,600 branches throughout the country.

Credit Union Overview

USALLIANCE Financial has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.49% (excellent) based on December 31, 2021 data. In the past year, USALLIANCE has increased its total non-brokered deposits by $144.49 million, an excellent annual growth rate of 10.98%. Please refer to our financial overview of USALLIANCE Financial (NCUA Charter # 17587) for more details.

Chartered in 1966 as USAlliance Federal Credit Union, the original FOM was exclusive to IBM employees. The USALLIANCE Financial rebrand occurred 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 has grown to be the 14th largest credit union headquartered in New York State, with more than 133,000 members and assets in excess of $2.2 billion.

How the 24-Month Certificate Special Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, no other credit union or bank currently has a higher rate than offered on the USALLIANCE 24-month Certificate Special APY. The following table compares the 24-Month Certificate Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.

APYCD Term (Early Withdrawal Penalty)Credit Union/Bank
3.00%36-Month Certificate Special (EWP=360 days)USALLIANCE Financial
2.86%24-Month Certificate (EWP=180 days)Connexus Credit Union
2.42%24-35 Month CD (EWP=180 days)Department of Commerce Federal Credit Union
2.30%24-Month CD (EWP=180 days)CFSB
2.30%2-Year Popular Direct CD (EWP=270 days)Popular Direct

How the 36-Month Certificate Special Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, no other credit union or bank currently has a higher rate than offered on the USALLIANCE 36-month Certificate Special APY. The following table compares the 36-Month Certificate Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.

APYCD Term (Early Withdrawal Penalty)Credit Union/Bank
3.25%36-Month Certificate Special (EWP=360 days)USALLIANCE Financial
3.01%36-Month Certificate (EWP=180 days)Connexus Credit Union
2.75%3-Year Money Market Certificate (EWP=30% of maturity dividends)PenFed Credit Union
2.50%3-Year Term CD (EWP=180 days)Rising Bank
2.50%36-Month CD (EWP=180 days)Limelight Bank

The above information and rates are accurate as of 5/27/2022.

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

Related Pages: New York CD rates, Boston CD rates, Hartford CD rates, 1-year CD rates, 5-year CD rates, nationwide deals

Comments
deplorable_1
  |     |   Comment #1
These are worth considering if you didn't already have the add-on CD's from MACU and GTE already due to the short term and high rate. For comparison purposes all my add-on CD's mature in March 2024 which is in 22 months. GTE = 3.04% APY, MACU Growth CD 3.51%, MACU Mountain climber CD 3.75% APY.
h_meister
  |     |   Comment #2
Are you limited to 100K total for the two MACU CDs?
deplorable_1
  |     |   Comment #6
No I have 3 accounts with a total limit of $250,000 plus interest. 100k limit x 2 for me and the wife and 50k limit for my daughter in the mountain climber CD(Got to watch out for that kiddie tax in this one though ;0).
milty
  |     |   Comment #5
These are certainly attractive, an opportunity to go from 1% to 3.25%, but is it still a little premature before jumping in with too much? It still seems early yet for rates to have been put to bed, and so he may wish to wait while visions of 4% danced in his head.
Mak
  |     |   Comment #8
milty, I agree, I have a bunch of CDs maturing over the next 2 years so the 2 year one is a little too short a term for me, the 3 year one isn't bad if you need to fill a ladder but don't use it all.
hank
  |     |   Comment #10
I don't like that it's only 3 years. I would be more likely to do it if ir were 5 year. The fed will be meeting in 2 weeks and will hopefully raise rates at least 50bps.So I am thinking rates will go higher so I will wait at least until the fed meeting on this but it's possible I'll pull the trigger
rateshopper
  |     |   Comment #3
Any idea if a "hard pull" credit check is performed?
Sylvia
  |     |   Comment #4
I seem to remember a hard pull when I joined years ago.  I applied online.  It may be different at a branch.
jimdog
  |     |   Comment #7
Appears lots of fees and red tape from comments. See they even charge $3 per month fee for an IRA, I'll pass on this NY CU.
FirstNation
  |     |   Comment #9
jimdog, you're right about the fees.
I had to use their virtual assistant to find them.
One of my favorites is a $30 fee to do an IRA/HSA transfer to another institution.
Another is overnight mail for $50.
However, the extra interest earned might mitigate these fees.
I've had add-on CD's that had IRA fees for transferring out.
But, the rate that I was geting and the add-on feature made it worthwhile.
jimdog
  |     |   Comment #11
NY is often a highly regulated financial state that makes it tough to do business. Since I'm from the south, I prefer to do my CD shopping in the south, even if it cost's me a few bucks.
Ratesaver
  |     |   Comment #12
Jimdog, For yrs. its been this way in the North East.. I am going after these cd. even though I have reservations of some kind o drawback form this credit union... I do know that the cds are callable... In the Poconos , Pa. is from I am from the rates in the banks are like nothing. .03% Too many bank and credit unions . There are 2 in every block in Scranton , Pa. where president Joe Biden is from...
P_D
  |     |   Comment #13
I think the call option greatly diminishes the value of these CDs to the depositor and the market premium is insufficient to compensate in this volatile rate environment.

One of the main attractions of bank CDs is that they give you an opportunity to lock in a rate regardless of market rates with minimal risk. Take that away and you've got a derivative instrument of unknown value. It's kind of like tricking risk averse consumers into options trading.
jack12
  |     |   Comment #14
I bought a 2 year brokered CD with the call option because with rising rates I just don't see that as very likely and it gave me a 5-10 basis point premium over the non callable's

This deal was not yet available and I am trying not to open new accounts if I can help it
Unless something irresistible comes down the pike
P_D
  |     |   Comment #15
Depends on the term. If you buy a short term CD, the call option is less important. But if you buy a longer term one with a call option, the chances of it being called against your interest at some point in the term increase. I think rates are particularly volatile right now and it is not possible to even make a short term forecast let alone a long term one. Are we headed for recession? Severe recession? Depression? If any of those scenarios unfold, what will happen to rates and how fast? The Feds control is limited. I think we are in uncharted territory now with rogue fiscal management and a helpless Fed. Who knows what is going to happen to rates.

Nothing wrong with your gamble, but it is a completely different kind of investment when you buy a CD with a call option. It adds additional risk that many do not understand. And in this rate environment it's very hard to value. 
jack12
  |     |   Comment #16
If a 1 year pays 2% and a 2 year pays 3% and mine gets called in a year then in effect, I got a 1 year that paid me 3%
Thats a benefit to me and calling it a "gamble" is greatly magnifying the real risk that rates somehow massively decline over the next year
There is about a 98% chance that is not going to happen

A gamble is betting on the 2% not the 98%

You make it sound like we are in a casino betting it all on red or black
Choice
  |     |   Comment #17
And where are you going to put those funds in/for year 2? 0% or …averaged with 3% = 1.5%
111
  |     |   Comment #21
Posted for posterity - as of 5/29/22 6:40 PM CST Choice posted in comment #17 -

“And where are you going to put those funds in/for year 2? 0% or …averaged with 3% = 1.5% “

Why post this? No other reason than to protect against” reality being changed” later. (Truth, facts and history are real, and not just a choice.)
P_D
  |     |   Comment #18
#16

As I said, it depends on the terms involved of the investments you are comparing. Of course you can give examples where there is a case to invest in a callable CD. That was the reason I said there is nothing wrong with your gamble. You can debate the terminology if you like, but either way when risk is involved you are placing a bet regardless of what you think the odds of losing are.

The important downside in the case you gave that you left out of your analysis is the potential opportunity cost. If they call it, the interest rates could be so much lower that you missed the opportunity to get a longer term CD at the higher rates and will lose your upfront advantage on the back end. You can speculate about the odds of that happening, but it is speculative nonetheless.

I also think there is a difference between a broker offering callable CDs and a bank or credit union offering them as I think most people who deposit money in the latter will probably not even be aware they are callable. I don’t go as far as saying they should not be permitted to do it though. 
deplorable_1
  |     |   Comment #19
I believe the odds would be in your favor jack12 for the 2 year CD in particular. Yes if they were to call it in year 2 you could roll it into a higher yielding CD. Right now the short term is a safer bet as rates rise quickly. I guess everything is a gamble depending on how you look at it. Even the timing and duration of CD's can be a gamble. Lock in 5-7 year CD's at the wrong time you may miss the good rates. Fail to lock in 5-7 year CD's at a good rate and you miss out.
Mak
  |     |   Comment #20
I bought a callable relationship long term CD from MidFirst bank once, the rate was high and I couldn't find anything else even close at that time. That being said I wouldn't buy another one unless it was under the same circumstances, the rate would have to be much higher than anything else. After I bought it rates dropped quite a bit and I could never figure out why they didn't call it but they never did, I was worried the whole time that they would.

I  wasn't really paying attention to the article and didn't see the call option, definitely not for me because of that, not high enough of a rate for me to give the bank or credit union that much of an advantage. 

I just bought a brokered 3 year CD and I'm trying to buy more brokered CDs now, hardly ever did before. Easier to put brokered CDs in my Vanguard trust account than trying to open trusts at a bunch of individual banks or credit unions, sometimes it just can't be done. Also tired of being a member of so many credit unions where you have to watch for dormant fees every 3-6 months..
P_D
  |     |   Comment #22
A question I would like a definitive answer to is whether or not brokered CDs purchased in a brokerage account titled to a formal trust can have deposit insurance coverage greater than $250k if the terms of the trust would otherwise qualify for higher insurance limits if the CDs were purchased directly.

Until getting that answer of course the safe assumption is that brokered CDs are limited to $250k coverage per bank.    
Mak
  |     |   Comment #23
If I understand what you are asking and I'm not sure I do....I would assume that any CDs that are opened in my brokered formal revocable living trust account at Vanguard would be titled as the the trust is titled, however when I look at the CDs in my trust account it does not tell me how each CD is actually titled. I'll give Vanguard and the FDIC a call tomorrow to see if they can give me an answer that matches. Until I can figure that out probably best to keep everything under limits and just open more at different banks.

The insurance rules can be hard to understand sometimes. For instance, I was told by someone at the NCUA that if I have a joint account with POD, both people listed on the CD have to be members of the credit union for it to payoff fully. Didn't make sense to me but I joined my wife up at any of the credit unions where she is joint on CDs with me just in case.
Also if you have a CD in a joint trust account with a beneficiary and then also open a CD in a regular joint account and name the same beneficiary those accounts are not considered different as far a s insurance limits go.
P_D
  |     |   Comment #24
"For instance, I was told by someone at the NCUA that if I have a joint account with POD, both people listed on the CD have to be members of the credit union for it to payoff fully."

I'm quite certain that is correct under NCUA rules.

"Also if you have a CD in a joint trust account with a beneficiary and then also open a CD in a regular joint account and name the same beneficiary those accounts are not considered different as far a s insurance limits go."

That is also correct. Coverage for the same beneficiary is limited to $250k.

Yes, NCUA and FDIC rules can be very complex. And the problem is that you can get conflicting answers depending on who you ask even if you get the nuance of your question correct (which can also be a challenge).

The whole insurance system needs to be replaced with a system that requires the FI to certify that your funds are insured rather than the depositor having to navigate the arcane insurance system themselves. But it will likely never happen. Instead you just have to keep your fingers crossed and pray you are insured, never finding out with certainty until it is too late. Some insurance!

By the way NCUA and FDIC rules differ. And FDIC is in the process of changing their rules in a year or two to ostensibly make them less complex (HA!) so stay informed.

I'd be interested in what you learn from your calls. I am not certain how Vanguard actually holds your brokered CDs, whether in the name of the trust or some kind of street name system. Having said that I will wait for your info. to see if it sheds light on my original question.  Thank you. 
Mak
  |     |   Comment #25
I saw that one about them changing the rules in 2024, they really need to make it simpler.
_________
"For instance, I was told by someone at the NCUA that if I have a joint account with POD, both people listed on the CD have to be members of the credit union for it to pay off fully."
This one really surprised me because I was thinking banks where you don't have to be a member, didn't have my wife as a member on all the credit unions but I do now. I'd be willing to bet that not many people are aware of that one.

That's why I said I'll see if Vanguard and the FDICs answer match...;)
P_D
  |     |   Comment #26
I don't keep trust funds I manage at credit unions because the trusts are complicated and there are too many complications.

For example, I believe that in order for beneficiaries to qualify for increasing the NCUA coverage above $250k, that all beneficiaries must also be members. And in most cases you must provide the CUs with SS#s and other confidential information for each beneficiary as well. I manage several trusts including revocable and irrevocable. They all have a long list of beneficiaries and there is no way I would provide that information to a CU. There is some question though about whether contingent beneficiaries need to be members too. I never got that far since I already ruled CUs out for trust accounts.

The entire insurance process needs a renovation.  It is far more complex than it appears and you can spend a career trying to get complete and accurate information.

"I'd be willing to bet that not many people are aware of that one."

They certainly wouldn't know without doing a lot more research than they should have to do.  
P_D
  |     |   Comment #27
Mak
This may give a subtle clue as to the answer.

"Co-owners on joint accounts with no beneficiaries are provided insurance coverage regardless of whether they are a member. However, co-owners on revocable trust accounts must be members of the credit union for their portion of the funds to be federally insured."

My guess was that the reason the answer you got is correct is that if beneficiaries are added to a jointly owned account it changes it to an informal trust and therefore must follow the same rules as a formal trust as above i.e, all joint owners must be members.

I agree that few would ever figure that out without considerable effort.

https://www.mycreditunion.gov/share-insurance-estimator-faq#:~:text=Co%2Downers%20on%20joint%20accounts,funds%20to%20be%20federally%20insured 
Mak
  |     |   Comment #29
P_D.....we only have one beneficiary so not a big deal for me as long as I keep them under $250k but I would like to know anyways. Most of my CDs are not in a trust but scattered over at least 10 different credit unions which is a pain..I know how difficult is to handle what I have myself, can't imagine handling multiple accounts and trying to find where to put the funds.
Sylvia
  |     |   Comment #28
#22, Fidelity goes over this subject in its CD disclosure, https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fixed-income/cddisclosure.pdf. Page 7 explains FDIC coverage for various types of trust accounts. Vanguard has a similar document, https://personal.vanguard.com/pdf/vbscddisc.pdf. See page 4.
Mak
  |     |   Comment #30
Thanks Sylvia
P_D
  |     |   Comment #31
Thank you Sylvia, great information. But having read both of the sections regarding insurance coverage on revocable trusts on the pages you referenced in isolation from the rest of the document, I find my question still open.

The Fidelity disclosure seems to make it quite clear in that section that coverage follows the same rules as FDIC including coverage in excess of $250k if certain conditions are met.

The Vanguard disclosure however is less specific and is not clear at all whether the CDs they broker have coverage subject to the same rules as FDIC and therefore can have coverage beyond $250k (1). I think the likely answer is that they will have the same coverage, but that is just speculation. I think the main issue is whether or not the CD they sell you is in fact titled in the name of the trust. My guess is that it is, but the convoluted verbiage in this section of their disclosure gives me pause. Perhaps if I read the rest of the document it would make the answer more clear. As I often do with Vanguard I find their communication obtuse compared to other financial institutions. I have been dealing with them for many years both professionally and personally and I have some ideas as to why it has evolved that way. But that's a different subject. Thanks again for the info.

(1) The Vanguard disclosure says only this about living trusts:

"Living trusts are subject to special rules, which should be carefully reviewed in order to determine the available deposit insurance coverage."    
Mak
  |     |   Comment #32
Vanguard said that it would be the same as if you opened an individual CD at a bank, if I open the CD in a trust account at Vanguard it is insured as it is titled in my trust. Joint trust account with 3 beneficiaries would be insured up to $1,250,000 is what she said.
Sylvia
  |     |   Comment #33
Thanks for your report, Mak. That's the gist I get from skimming these disclosures (I took a look at Schwab's as well.): buying CD through broker is no different than direct from issuing bank; there's no risk of some loss in insurance coverage by using broker as intermediary.
Mak
  |     |   Comment #34
Sylvia... I just got off the phone with the FDIC and they gave me a different answer.... she said that Vanguard needs to put the name of the trust on the CD at the bank when they open it, she also said that a joint trust account with 3 beneficiaries would be insured up to $1,500,000. Now I'm going to have to call Vanguard back and see what their answer to that is.
Mak
  |     |   Comment #35
She also said if one of the trust owners dies than the insurance on the $1,500,000 would be good for a 6 month period and then drop to $750k
Sylvia
  |     |   Comment #36
Mak, the $1.5M initially surprised me. Looking at FDIC rules, I guess it's 2 X (3 X $250K), not (2 X $250K) + (3 X $250K). "If a trust has more than one owner, each owner's insurance coverage is calculated separately." https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits/

Keep us posted. Is insurance coverage through broker inferior to direct from bank, or just the communications of same?
Mak
  |     |   Comment #37
So this time I got a different person at tVanguard and he said that they are opened in the name of the trust at the bank and that if something were to happen such as the bank failing Vanguard is the firm and they take care of getting the insurance money and as long as it is in a trust account it would be insured.
I also asked him if one of us passed and because of that the surviving spouse could then be over the limit, for example $500k in the trust between 2 owners, one dies the other now has the $500k in their name and that is over the insurance limit.
If that happens then the serving spouse has a 6 month grace period but the surviving spouse can sell the whole CD back to the bank at that time and get par, even if it is below par at the time, if the surviving spouse wanted to sell half of the CD to bring it back into the insurance limits then Vanguard would sell half but on the secondary market so you might lose money in that case.
Mak
  |     |   Comment #38
I had read about the bank buying back the CD at par in the case of one of the owners passing away, that is why I asked him.
P_D
  |     |   Comment #39
"I had read about the bank buying back the CD at par in the case of one of the owners passing away"

Mak thanks for sharing the info from your calls. I am not surprised by the mess, it happens regularly. I had an issue with Vanguard this morning when different CSRs gave me conflicting answers.

Regarding the feature I quoted, it's called a "conditional Put" with the condition being the death of an owner. Some CDs come with this feature which allows redemption of the CD at par if the owner dies with no penalty.

I am not sure about what happens in the case of joint owners as that can be complicated. So you will want to be clear on that if that is a feature of your CD(s).

As much as you can be clear on anything that is!

Have more to say about the results of your calls but pressed for time. Will try to post again. Thanks again.  
Sylvia
  |     |   Comment #40
Mak (#37), a much better answer! By the way, the 6 month-grace period is automatically provided by FDIC, https://www.fdic.gov/deposit/diguidebankers/death-account-owner.html.
P_D
  |     |   Comment #41
Yes, you can actually make money on a conditional put with a brokered CD.

The downside is that you can only do that trade once because it requires you to die in order to exercise the put. Not recommended. There are better trades.
QuickSilver
  |     |   Comment #42
Even though USAlliance has never exercised such a call, I have no interest in being subjected to it without higher compensation.

Two year Treasury notes currently yield ~2.65%. You get ultimate safety, ultimate liquidity, and exemption from state income taxes. And, it cannot be called away from you.

Between the two, I'd go for the Treasury note.
garyh1961
  |     |   Comment #43
The CU must be very busy. Applied online says approved and a rep would call to complete. No one has called. So i wonder how long other people are waiting to get these accounts opened
RickNP
  |     |   Comment #44
I came here this AM wondering if my delay was unique. Seeing your comment assures me it's not. I am an existing member funding the certificate with funds from my USA savings account, and it's still been 3 days without the promised rep contact.
Ratesaver
  |     |   Comment #45
Hay guys I did not listen to all of the comments above and I opened in branch a large cd, yesterday with no problems. don't worry about anything go get it... 3.25% is right in the ballpark of upwords to 5% Can't get them all.
Sylvia
  |     |   Comment #46
I think the delay is for them to get your e-signature on their "Consent Agreement to Electronic Delivery of eDocuments," which is sent via DocuSign. As an existing member, I had to do this last year, after going awhile without opening any new accounts. No delay when I opened another CD a few months later. I would call to follow up.
Sylvia
  |     |   Comment #49
UPDATE: I just tried opening another CD through online banking. This time, I was not instantly approved. The rep I got on the phone after a bit of a wait completed the process for me. Failing to find any missing info, she concluded the system must have froze up due to high demand.

From that conversation, I'd like to pass along some tips. The online form for adding a new account is very clunky. It asks for entry and confirmation of info that the CU should already have or is extraneous. You can bypass the redundancies and wait by calling instead of using online form, which, the rep agrees, makes little distinction between new and existing members.

I elected ACH funding. Limit on this funding method is a generous $200K. CD now appears as opened with 0 balance. From previous experience, balance will show funding amount when they initiate pull from outside FI, before $$s have even arrived at CU.

Finally, if you're still on hold, do call. It will expedite things. Good luck!
interested
  |     |   Comment #48
same with me. No one ever called however check your email. The only contact I got was via email and they sent docs to sign. Verify the CD interest rate on your forms, they had mine wrong but they quickly fixed that w/ a ;phone call.
RichReg
  |     |   Comment #47
Wonder how long USAlliance will keep these rates around? Last time (June 2019),
less than 2 weeks....hmmmmm.
USALLIANCE Financial Boosts High Dividend Savings Rate
Deal Summary: High Dividend Savings, 1.00% APY on balances of $500 and above.

Availability: Easy membership requirement.

More than three years ago, New York-based USALLIANCE Financial (USALLIANCE) introduced the High Dividend Savings (HDS) account with an initial 2.30% APY. The HDS offered a competitive rate for about seven months before the APY began dropping. Between March 2020 and February 2022, the APY was anything but competitive. A recent increase of 35 bps boosted the rate to 1.00% APY, once again putting the HDS in good company....

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USALLIANCE Financial Nearly Doubles 11-Month No Penalty CD Rate
Deal Summary: 11-Month No-Penalty Certificate, 1.25% APY, $500 minimum deposit.

Availability: Easy membership requirement.

As DA reader, thowellIII, noted in a Forum post over the weekend, USALLIANCE Financial (USALLIANCE) has nearly doubled the rate on its 11-month No Penalty CD. With a new 1.25% APY, the 11-month No Penalty CD has the highest rate for any nationally available short-term no penalty CD. The minimum opening deposit is $500, with no stated balance cap.

While the No Penalty CD no longer has its own landing page, the...

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USALLIANCE Financial 48-Month CD Special Is A Rate Leader
Deal Summary: 48-month Certificate Special, 2.00% APY, $500 minimum deposit.

Availability: Easy membership requirement.

For the first time in two years, a nationally available 4-year direct CD with a small minimum has broken the 2.00% APY ceiling. USALLIANCE Financial (USALLIANCE) has added a 48-month Certificate Special earning 2.00% APY, which can be opened with a $500 minimum deposit, with no stated balance cap.

USALLIANCE Certificate Specials are limited-time offerings, usually available for at least a month, with different term lengths cycling in and out of the product...

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USALLIANCE Financial 18-Month CD Special Is A Rate Leader
Deal Summary: 18-month Certificate Special, 1.50% APY, $500 minimum deposit.

Availability: Easy membership requirement.

As DA reader, alan1, noted in a Forum post yesterday, USALLIANCE Financial (USALLIANCE) hiked the rate of its 18-month Certificate Special to 1.50% APY. With an increase of 45 bps, the 18-month Certificate Special now offers the highest rate for nationally available 18-month CDs. The minimum opening deposit is $500, with no stated balance cap.

USALLIANCE Certificate Specials are limited-time offerings, usually available for at least a month, with different term lengths...

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USALLIANCE Financial Substantially Boosts 24-Month CD Special Rate
Deal Summary: 24-month Certificate Special, 1.25% APY, $500 minimum deposit.

Availability: Easy membership requirement.

DA reader, cumulus, posted some good news in the DA Forum post: USALLIANCE Financial (USALLIANCE) is now offering 1.25% APY on its 24-month Certificate Special. With a substantial increase of 65 bps, the 24-month Certificate Special now offers one of the highest rates offered on a nationally available 2-year CD. The minimum opening deposit is $500, with no stated balance cap.

USALLIANCE Certificate Specials are limited-time offerings, usually available for at least...

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