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.
|2.50%||$500||-||USALLIANCE Financial||24 Month Certificate Special|
|2.25%||$500||-||USALLIANCE Financial||36 Month Certificate Special|
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).
|1.95%||$500||-||USALLIANCE Financial||18 Month Certificate Special|
|1.00%||$500||-||USALLIANCE Financial||11 Month No Penalty CD|
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early withdrawal penalty will equal 180 days dividends on the amount withdrawn.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the penalty amount will equal 360 days of dividends on the amount withdrawn.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.
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.
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
- New-York Historical Society
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.
|APY||CD 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.
|APY||CD 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.