USALLIANCE Financial No Penalty CD Has Pre-Black Friday Rate Boost


Deal Summary: 11-Month No-Penalty Certificate, 4.00% APY, $500 minimum deposit.

Availability: Easy membership requirement.

Don’t miss this Black Friday Rate Jump!

That was the lede in an email I received from USALLIANCE Financial (USALLIANCE) yesterday. By the time you read this blog post, USALLIANCE will have raised the 11-month No Penalty CD rate to 4.00% APY. The minimum opening deposit is $500, with no stated balance cap.

The new 4.00% APY is the 11-month No Penalty CD’s highest rate this year and is also the highest rate offered on any non-brokered nationally available short-term no penalty CD.

Thanks to DA reader, Rickny, for announcing USALLIANCE’s good news in a Forum post.

While the No Penalty CD no longer has its own landing page, the Certificate Accounts Disclosure, lists the following no-penalty features:

An early withdrawal of principal requested prior to the maturity date will be processed as an account closeout for the entire balance with no early withdrawal penalty imposed.

A withdrawal prior to maturity will reduce earnings and therefore your APY will be lower than the disclosed yield.

Withdrawals and account closeouts are not permitted to be made within the first 7 calendar days of opening the account, beginning on the date of deposit.

Partial early withdrawals are not permitted during the term of this certificate.

The No Penalty CD is not available for Individual Retirement Accounts (IRA), Health Savings Accounts (HSA), or Coverdell Education Savings Accounts (Coverdell ESA).

The following is from a Live Chat with a very helpful CSR. (FYI – the Chat started out with a not-so-helpful bot.) My main concern is how to request an early closure, how to receive the funds, and how quickly the funds would be released. If any of those conditions are difficult and/or time-consuming, the no-penalty CD becomes much less liquid. Luckily, it looks like a fairly easy and fast process:

[CSR]: Hello, you are talking to [CSR]. How can I help you today?

    You: Hello! I have a question about your 11-month No Penalty Certificate.

[CSR]: What is your question?

    You: Once the No Penalty Certificate is opened and 7 days have passed, how can a member request an early closure?

[CSR]: You would request an early closure by calling in to the credit union, provide the necessary verification information that the representative is asking for (member #, over the phone pin, etc) and then inform you would like to close the CD.

    You: okay, thanks! And how can the member receive the funds from the closed CD? Is a transfer to a member's existing USALLIANCE checking or savings account an option?

[CSR]: The funds from the closed CD will be placed in either the USAlliance checking acct or savings acct of the member's choice.

    You: Okay, thanks! And how long would it normally take to request a no-penalty CD closure and to receive the funds in your USAlliance checking or savings account?

[CSR]: The request to close the CD is done instantly once you call in with this request. The funds are then made available immediately as well upon the account closing.

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 casually browse.

    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

    DA readers who follow USALLIANCE blog posts are probably familiar with USALLIANCE’s “right to call” any of its Certificates before maturity. While that may sound somewhat ominous, 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.

The “Membership Acknowledgement and Certification” document outlines the various ways to qualify for USALLIANCE membership.

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 No Penalty CD can be done online or at any of the 11 branch locations in Connecticut (2), Massachusetts (1), New Jersey (1), and New York (5). FYI – according to the Visiting Our Cambridge page, the branch/ATM on Massachusetts Avenue in Cambridge is “currently closed until further notice.”

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, with a Texas Ratio of 3.68% (excellent) based on June 30, 2022 data. In the past year, USALLIANCE has increased its total non-brokered deposits by $292.38 million, an excellent annual growth rate of 21.14%. 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 IBM basement cafeteria, USALLIANCE has grown to be the 14th largest credit union headquartered in New York State, with more than 141,000 members and assets in excess of $2.5 billion.

How the No Penalty Certificate Compares

As I have mentioned in previous blog posts, no-penalty CDs are not commonplace, and the longer the term, the more competitive the CD. When compared to other nationally available no-penalty CDs, USALLIANCE Financial’s 11-month No-Penalty CD APY currently ranks second.

The above information and rates are accurate as of 11/22/2022.

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, nationwide deals

  |     |   Comment #1
This is a GARBAGE credit union, stay away please
  |     |   Comment #12
What problems did you encounter. They are a A rated institution. I only know of long hold times. Many banks have that when online banking. I can name a few if we need to. But you posted 2 x with no details
  |     |   Comment #28
They pulled a Chex on me without asking me or without any kind of permission. I filed a complaint with NCUA and they responded on the 60th day (the last day) and flat out lied in their response.
Now NCUA has escalated this to an investigation.
  |     |   Comment #2
Why not just call it a savings account with a 11 month rate guarantee ?
  |     |   Comment #14
#2 They are similar but with a savings account you can make deposits and partial withdrawals. With this no penalty you must close the CD and withdrawal all the funds.
  |     |   Comment #3
Good rate for np/cd, I hope my bank sees this.
  |     |   Comment #4
Why do all my local credit unions and banks pay only .1% interest?
  |     |   Comment #9
boston61: Why does that matter ? Bank elsewhere.
  |     |   Comment #5
Remeber- they have a low ach daily/monthly limit- you tyhen need to wire to get your money out in excess of those limits--
  |     |   Comment #7
#5 You can initiate the transfer from an outside institution.
  |     |   Comment #8
dale26s: Shared banking members is different - you can withdraw/ transfer larger amount.
  |     |   Comment #17
Or you can simply write yourself a check (after transferring funds into your checking account)
  |     |   Comment #6
I can only compare this to getting a few chips of coal in my stocking at Christmas it's slap in the face
  |     |   Comment #10
Duck: How do you figure ? Who else is paying 5% savings guaranteed 11 months ?
  |     |   Comment #11
Ummm... that's 4%.
If you want 5% go to the SkyOne FCU article from the 15th.
22 months plus other perks.
And speaking of 4% without penalty, you can get that from a
Liquid Money Market @ Brilliant Bank.  4.01% APY, to be exact...
  |     |   Comment #15
Right --4%. This is guaranty 11 months , a mm or savings isn't.
  |     |   Comment #16
You really think rates are headed the other direction?
Not in these next 11 months they ain't....highly unlikely.
  |     |   Comment #13
How do you figure. Its no penalty you dont like it take it out to the next higher paying CU
  |     |   Comment #18
12 month TBill at 4.79% on Schwab, 9 Month TBill at 4.71%. Why take 11 months at 4.0% when u you have these other much better options?
  |     |   Comment #19
Yes Mals except i can close the NP CD with no losses. I can not on the Tbill
  |     |   Comment #20
Simple procedure
Took out last one cancelled in full and money wired to me that day
Easy to work with
  |     |   Comment #25
I'll sacrifice that for the extra 70-80 bps all day long, especially if its only 9-12 month commitment.
  |     |   Comment #21
How is interest paid ? ...daily, monthly or at maturity ? If you close before maturity is interest still paid to date of closure ?
  |     |   Comment #22
USAlliance CDs pay monthly.
Whatever day you close it, yes, they would accrue through the day before and pay it out with the principal.
  |     |   Comment #23
I have been told by another cu that if it pays monthly and you close the account b4 end of month(25th for example) , you will not receive that months' interest.
  |     |   Comment #24
Well gee, ...that's really generous of that other CU.
But USAlliance doesn't penalize you for closing in the middle of the month.
And certainly not on a No Penalty CD.
  |     |   Comment #27
I tried to open a savings account a few days ago and my application was received, but just checked on it and it says the app was declined??? I'm in my 70's and it's the first time I've ever been declined. My credit score is about 830 and have nothing derogatory. No explanation either.
  |     |   Comment #29
Consider yourself lucky you dont have to deal with this garbage CU

They pulled a Chex on me without asking me or without any kind of permission. I filed a complaint with NCUA and they responded on the 60th day (the last day) and flat out lied in their response.
Now NCUA has escalated this to an investigation.
  |     |   Comment #30
@fdic #29 - any further update from NCUA ? Has your issue been resolved by NCUA ?
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