Less than three weeks ago, I wrote about how USALLIANCE Financial (USALLIANCE) had re-worked their product line, eliminating Certificate Specials with non-standard terms. USALLIANCE is again offering “Specials,” but this time it’s Special Rates. For a limited time, promotional rates are available on the 12-month Certificate (2.75% APY) and 36-month Certificate (3.25% APY). The promotional rates are 47 and 92 bps higher than are currently offered on the 12- and 36-month Certificates, respectively.
According to the fine print on Savings Rates page, either of the Certificates can be opened with a $500 minimum deposit of new money, defined as “funds not currently on deposit at USALLIANCE.” Step-Up Certificates are not eligible for a promotion rate.
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the early withdrawal penalty will equal 180 days dividends on the amount withdrawn.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the penalty amount will equal 360 days of dividends on the amount withdrawn.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 withdraw any of the 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.
I have included the following in several other USALLIANCE blog posts, but it’s still important information to have on hand, whether you’re a long-time DA reader or new to the fold.
The good news is that USALLIANCE allows POD beneficiary(ies) to be named. As DA reader, me1004, mentioned in an April blog post comment, there is also not-so-good news concerning beneficiaries, which can be a deal breaker for some.
I note, US Alliance is one of the few banks or CUs that will not let you add a
POD beneficiary without providing that beneficiary's Social Security number.
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
In previous blog posts, I have mentioned USALLIANCE’s “right to call” any of its Certificates early that, 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.
USALLIANCE has a new online application and the first page details the various ways to join.
Easy Membership Requirement: The ninth option, "I am a member of an association or charitable organization," lists eleven groups that qualify.
- 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 six 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.
The newest name on that association list is First Jersey Member. According to a February 2018 press release issued by the NCUA,
Members of First Jersey Credit Union are now members of USALLIANCE Federal Credit Union following today’s liquidation by the New Jersey Department of Banking and Insurance.
The Department liquidated First Jersey, of Wayne, New Jersey, and appointed the National Credit Union Administration as liquidating agent. USALLIANCE Federal Credit Union of Rye, New York, immediately assumed most of First Jersey’s assets and loans and all member shares.
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, are welcome to join. Following the assumption of First Jersey CU, individuals who live, work, or worship in the New Jersey counties of Bergan and Passaic qualify for membership.
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 7.22% (excellent) based on March 31, 2018 data. In the past year, USALLIANCE has increased its total non-brokered deposits by $90.12 million, an excellent annual growth rate of 9.47%. 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 13th largest credit union headquartered in New York State, with more than 112,000 members and assets in excess of $1.5 billion.
How the Certificate Specials Compare
When compared to the 224 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are nationally available, USALLIANCE Financial’s 12-month Certificate Special APY is the new rate leader.
When compared to the 220 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are nationally available, USALLIANCE Financial’s 36-month Certificate Special APY currently ranks first.
The above rates are accurate as of 8/24/2018.
To look for the best CD rates, both nationwide in state specific, please refer to our CD Rates Table page.