4/27/2017 Live Chat Highlights
Live Chat: All our CDs are available as retirement CDs. Even CD Specials.
Member: So what I saw yesterday was an error?
Live Chat: Must have been we do not limit what CDs are used as retirement accounts.
Member: Okay. What about the 36-month CD I see listed under Fixed Rate Certificates? It also lists the option to "Raise any CD rate by .25%" Is that correct?
Live Chat: I am reaching out on the about the Rate under fixed CDs because this is special and should not be listed there. The 2.20% rate is only new money and it is listed in error on the rates page we are updating that page now.
Member: And is there a limit of the number of 36-month Specials I can open?
Live Chat: Yes that is 1 special per SSN.
It’s been some time since USALLIANCE Financial (USALLIANCE) had a CD Special that was “wow-worthy.” The wait is over, with the addition of a 36-month High Yield CD Special (2.20% APY). The minimum deposit is $500 of new money, “or as much as you like.” New money is defined as “funds not currently on deposit at USALLIANCE.” There is a limit of one CD Special per Social Security number,
and according to the description on the promotion page, it is “not available for retirement accounts.”
When USALLIANCE unveiled its new website in August 2016, it opted to place all of its Special CDs on the Investment-CDpage. It’s not the first place I would look for CD Specials, since the term “investment” is most often associated with brokerage services, but now we know where to look.
As stated in USALLIANCE’s Truth In Savings document, the Early Withdrawal Penalty reads as follows:
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the penalty amount will equal 360 days of dividends on the amount withdrawn.
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.
Thanks to DA reader/contributor, ChasR, for sending me a transcript of his Live Chat about USALLIANCE’s newest CD Special.
Headquartered in Rye, New York (Westchester County), USALLIANCE Financial's field of membership is wide and varied, with residency, employment, and charitable organization membership serving as qualifying criteria.
USALLIANCE's online application Disclosure page for membership and new accounts details the various membership routes, which have been expanded since I last wrote about USALLIANCE.
Easy Membership Requirement:The seventh option (associations or charitable organizations) listed under "How Do You Qualify For Membership," lists eleven organizations and associations that can be joined by anyone:
- American Consumer Council
- 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
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.
Bethex Charter: USALLIANCE acquired Bethex Federal Credit Union in 2015 and former Bethex members have been grandfathered into USALLIANCE’s membership.
- Connecticut – West Haven (2)
- Massachusetts – Cambridge, Danvers, Malden, and Medford
- New York – Bronx, Ferndale, Napanoch (2), New York City (3), Otisville, Port Chester, Purchase, Rye, Somers, Wallkill, White Plains, and Woodbourne
Note: The CD Special can be opened as an IRA but not online. USALLIANCE suggests calling 800.431.2754, ext. 1260, for assistance in opening an IRA.
Credit Union Overview
USALLIANCE Financial has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 9.17% (excellent) based on December 30, 2016 data. In the past year, USALLIANCE increased its total deposits by $42.68 million, an excellent annual growth rate of 4.85%. 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 has grown to over 93,200 world-wide members and with assets in excess of $1.2 billion.
How the High Yield CD Special Compares
When compared to the 198 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available nationally, USALLIANCE Financial’s 36-month High Yield CD Special APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.20% APY||36-Month High Yield CD Special||USALLIANCE Financial|
|2.02% APY||30-Month Celebration Certificate||Northwest Federal Credit Union|
|2.00% APY||36-Month E-Certificate of Deposit||First Central Savings Bank|
The above rates are accurate as of 4/26/2017.