If you are a member of USALLIANCE Financial, you may recall receiving a rather odd-looking, “strictly confidential” email in mid-June, announcing that “VIP members are now eligible for a ONE QUARTER POINT RATE BOOST on newly opened 25 and 35 Month Certificate Accounts.” With this rate bump, the 25-month would jump to 2.85% APY and the 35-month to 3.00% APY. That exclusive offer was supposed to be good through the end of June, but by the 21st those rates were available to everyone. Either Certificate can be opened with a minimum $500 deposit and there are no stated balance caps.
|3.00%||$500||-||USALLIANCE Financial||35 Month CD|
|2.85%||$500||-||USALLIANCE Financial||25 Month CD|
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 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the penalty amount will equal 360 days of dividends on the amount withdrawn.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.
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. 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 cited USALLIANCE’s “right to call” any of its Certificates early, which 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.
Thanks to DA reader, scottj, for his Forum post about these rate change.
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 website and a new online application, the first page of which 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.
There’s a new name on that association list – 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 Accounts Compare
When compared to the 206 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are nationally available, USALLIANCE Financial’s 35-month Certificate Account APY currently ranks second.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|3.05% APY||30-Month CD Special||Andrews Federal Credit Union|
|3.00% APY||35-Month Certificate Account||USALLIANCE Financial|
|2.85% APY||3-Year CD||KS StateBank|
When compared to the 203 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are nationally available, USALLIANCE Financial’s 25-month Certificate Account APY currently ranks second.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.90% APY||24-Month Share Certificate||CommunityWide Federal Credit Union|
|2.85% APY||25-Month Certificate Account||USALLIANCE Financial|
|2.80% APY||24-Month CD||Greenwood Credit Union|
The above rates are accurate as of 7/9/2018.
To look for the best CD rates, both nationwide in state specific, please refer to our CD Rates Table page.