Utah Community Credit Union (Utah CCU) recently added a 22-month Add-On CD (3.05% APY), which features unlimited additional deposits throughout the term. The minimum opening deposit is $500, with no stated balance cap.
The 22-month Add-On CD is also available as an IRA (Traditional and Roth), earning the same APY with the same funding requirements and unlimited additional deposits.
As stated in the Truth-in-Savings document, the Early Withdrawal Penalty (EWP) reads as follows:
For accounts with a terms of 13 months to 48 months, the amount
of the early withdrawal penalty for your account is 180 days’ dividends.
For those concerned about falling rates, an add-on CD can provide safe harbor for funds. Here’s the best case/worst scenario: open a 22-month Add-On CD with the minimum $500 deposit. If a recession does occur within the year and rates fall back to near zero, you can continue to make additional deposits and be guaranteed a 3.05% APY into 2022. Should rates continue to rise, the $500 investment won’t lose too much ground, as the difference between a $500 2-year CD earning 5% and one earning 3% is about $21 over the two years.
Headquartered in Provo, Utah Community Credit Union’s field of membership (FOM) has expanded since I last wrote about Utah CCU in 2017. Individuals who live, work, worship, or attend school in the Utah counties of Davis, Juab, Salt Lake, Sanpete, Summit, Tooele, Utah, or Wasatch are eligible for membership.
Immediate family members (spouse, child, sibling, parent, grandparent, grandchild – adoptive or step) of a membership-eligible individual also qualify.
Joining Utah CCU and/or opening a CD can be done online, or in person at any of 18 Utah branches located in American Fork, Heber City, Highland, Lehi, Nephi, Orem (3) Payson, Pleasant Grove, Provo (3), Salem, Santaquin, Saratoga Springs, Spanish Fort, and Springville.
Credit Union Overview
Utah Community Credit Union has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.54% (excellent) based on December 31, 2018 data. In the past year, Utah CCU has increased its total non-brokered deposits by $97.97 million, an excellent annual growth rate of 8.81%. Please refer to our financial overview of Utah Community Credit Union (NCUA Charter # 10709) for more details.
Utah Community Credit Union was established in 1955 as the BYU Employees’ Federal Credit Union, with seven members, $35 in assets, and a “branch” located on a staircase landing in a BYU building.
And because they couldn’t afford to purchase a vault, cash was kept in a locked room
and placed in a cast iron bathtub, covered with a sheet of asbestos to protect it from fire.
With the expansion of the FOM and new off-campus branches being opened, the name was changed twice to better reflect the membership, with the Utah Community Credit Union rebrand occurring in 2000. Utah CCU is currently Utah’s fourth largest credit union, with nearly 179,000 members and assets in excess of $1.3 billion.
How the Add-On CD Compares
When compared to 243 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available within the FOM, Utah Community Credit Union's 22-month Add-On CD APY currently ranks second, with the Add-One feature increasing its competitiveness.
The above rates are accurate as of 4/3/2019.
To look for the best CD rates, both nationwide and in your state, please refer to our CD Rates Table page.