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MACU Now Allowing Over 100K In Growths?

denki
  |     |   159 posts since 2019

My understanding was that you could only have 100k Max TOTAL for all Growths combined. Every CSR I've asked in the past has stated that. But I just received a letter from MACU that seems to say something different.

I have 3 Growth CDs at MACU: 12, 36, and 60 mo.

I recently made a transfer from my MACU savings to my 12-month Growth that brought the 12mo Growth balanace to a bit OVER 100k (I only have a few dollars in my 36 & 60mo Growths.) Initially the system allowed it, but 24 hours later, the amount over 100k was automatically put back into my savings account. No problem, I just wanted to see if it would work, but I know that's the terms of the CD.

But then I got a letter from MACU, and unless I'm reading it wrong, the letter seems to suggest that one can have over 100k in Growths (??) -- as long as it's in different-term-length Growths??

Is that your impression of what this letter says? (I put the important parts in bold):

Dear Totally-Awesome Customer,

"As a reminder, 12 Month Growth Certificate certificates have a combined single limit of $100,000 per member. Recently, you made a deposit into your certificate account that caused your balance to go over the $100,000 combined single limit. Please be advised that we have transferred these overage funds into your Primary Savings account. You are welcome to open a new non-12 Month Growth Certificate certificate account with Mountain America to take advante of current certificate rates, but no more funds may be deposited into your 12 Month Growth Certificate certificate account."

To me the letter seems to say that you can have up to 100k for each Growth term-length even though that's not what the CSRs have said in the past. Am I crazy? Could one have 100k in a 12mo Growth and 100k in a 60mo Growth at the same time?

Does anyone have more than 100k in different term-length MACU Growths?

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7


Steve58
  |     |   459 posts since 2018
From the information bubble on the website rates for growth CDs:

"Credit union deposits are federally insured by the NCUA. Annual Percentage Yield (APY) is effective as of 10/9/2024. The minimum balance required to earn the APY is the same as the minimum amount to open the account. Penalties for withdrawing funds before the end of the designated term may apply. Fees may reduce earnings on account. After the certificate is opened, additional deposits can be made to the certificate at any time with the maximum of $100,000 on deposit in any one, or combination of, Growth certificates per primary account holder. An automated monthly deposit of at least $10 is set up at account opening."

I think the letter is trying to get you to open a 12 month standard CD with additional funds since you seemed interested in 12 month CDs since you just maxed out on your 12 month growth CD.

"a new non-12 Month Growth Certificate certificate account" = Standard 12 month CD

Seems since you are maxed out on your combined growth CDs (or over?) for your 100k per account limit, try adding more to a different length and see if it accepts it?
That would be a game changer.

Steve
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denki
  |     |   159 posts since 2019
What you say is reasonable, but...

-The top of the letter doesn't say "Growth Certificates have a combined limit".... but rather "12-month Growth Certificates have a combined limit"

-And if the letter was trying to suggest opening a 12 month standard CD...... then wouldn't it have said "You are welcome to open a new 12 month non-Growth CD"? Instead of "You are welcome to open a new non-12 month Growth CD"?

That's what's strange. Even though it goes against what we've been told by MACU, their own letter, in a couple places, seems to clearly imply that rather than it being 100k max for all Growth CDs combined, you just can't exceed 100k for any Growth term catagory.

I don't want to put $$ in the other length Growths right now simply to test it....... but I will tell you this:

I only have a few dollars in the others Growths (under $50 total)..... but when the system returned the money to my savings to keep the 100k cap, it allowed a full 100k to stay in the 12-month Growth on top of the under-$50 dollars I had in the other (different length) Growths.

Make of this what you will...
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5
Steve58
  |     |   459 posts since 2018
You said you made a deposit into the 12 month growth CD that brought it over the 100k amount just "to see if it would work". All I am suggesting is to take a small amount ($100) and put that in the 36 month growth CD "to see if it would work" since it appears you are already over the 100k maximum for all growth CDs.  Take one for the team!

What happens to your CD interest? Will that be added to the 100K in the 12 month growth CD making it more than 100K for that one CD? Or do you have it transferred to the savings account?

Steve
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4
MY2CENTSWORTH
  |     |   440 posts since 2016
In my experience, MACU does not count interest as part of the $100K limit and it has always been added in monthly as expected.
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8
Hooked
  |     |   236 posts since 2019
Sorry that your time was wasted, @Steve58
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3
gregk
  |     |   73 posts since 2013
Is there any reason why you don’t just ask MACU directly if the rules have changed in the way you’re suggesting?
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5
denki
  |     |   159 posts since 2019
I'm claiming nothing, I simply reported exactly what MACU's letter said, and what happened. After a large deposit to the 12mo Growth, the amount over 100k in that 12mo Growth was returned to my savings, but the system still allowed a full 100k in that Growth even though I had some funds (though under $50) in the others. It seemed not to take the others into consideration.

In the past I was told by MACU CSRs that once it reaches 100k: (1) Accrued interest will still be added to the account, and (2) the automated monthly payments MACU pulls for you will still continue (unless you request it to be stopped) even over 100k. My monthly payments are set at just the min $10/mo, but what if I had set it at $2,000/mo?

Steve58, I already transferred the money out of my MACU Savings and don't want to do a transfer in again, plus I really don't want more than the min in my others right now, sorry.

I completely agree with others that everything MACU has said up to now was that it's 100k total for ALL Growths combined (but with interest allowed, as well as continuing the same monthly automated deposits). But their letter seemed to imply otherwise, and their system did allow the full 100k in one when I had a bit (though under $50 total) in the others.

Go figure. But I'm moving on, I don't want more in the others now. I just wanted to report what happened to me.
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2
EdwardD
  |     |   77 posts since 2023
I have a thought and wonder if others might have known the answer.
Let's say Person-1 has an existing joint membership account (Person-1 = primary holder, Person-2 = joint owner) at MACU.
1. Does MACU allow Person-1 to opens another "single-owner" membership account since he is already a member?
2. If Person-1 is allowed to open his own membership account. How will MACU count the aggregate balance of Growth CDs? Does each of the single-owner account and joint ownership account have its own aggregate balance of Growth CDs? OR the aggregate balance of BOTH single-owner account and joint ownership account will be combined because both accounts have Person-1 as primary account holder?
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2
outtempster
  |     |   32 posts since 2010
MACU growth CD is still limited to $100K total. You can open standard CDs which are not limited by that. "You are welcome to open a new non-12 Month Growth Certificate certificate account", what they really mean is non growth CD (not another growth CD but not 12 month).

I had accidentally went over because of multiple growth CD and previously I thought it was per CD limit to $100K. At that time they allowed me to open the CD but didn't revert it when combined balance is more than $100K. However, the extra money didn't earn much interest at all, that's how a rep found out and help me to close out the growth CDs and opened standard ones.
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