bank rates

2 Odd-Term CD Deals Open To All Savers

gold bars stacked upUSAlliance Federal Credit Union is conducting a new CD promotion it’s calling “Spring CD Specials.”

The Rye, N.Y.-based credit union is offering two odd-term CDs – a 13-month CD that pays 1.21% APY and a 35-month CD that pays 1.61% APY.

These deals beat the top 12- and 36-month offers on our CD Rates Leaderboard. The best 1-year bank CD pays 1.07% APY, while the top 36-month CD pays 1.45% APY.

To receive the special rate, you must open your CD with funds not currently on deposit at USAlliance.

The minimum deposit is $500. There is no maximum.

USAlliance operates branches in New York, New Jersey and Massachusetts. It has about $790 million in deposits and carries a 3-star Bankrate Safe & Sound rating.

Its membership field is something of a hodgepodge, based primarily on geography or employment.

However, it includes anyone nationwide who joins Arc of Westchester (WARC), a charitable organization helping children with developmental disabilities. The credit union will make the necessary donation for you.

To join USAlliance, you also must open a checking or savings account, with a $1 minimum initial deposit.

An application for both credit union membership and new accounts may be completed online at www.usalliance.org.

Before you sign up, you should consider the following language in USAlliance’s membership agreement:

“The Credit Union has the right to call or redeem Certificate Accounts early. … (It) will provide 60 days’ written notice to you.”

It’s unusual for a bank or credit union to have an early call feature covering all of its CDs, not just specific CD issues expressly identified as being subject to early call by the institution.

Nevertheless, the risk posed by this call feature has to be weighed in terms of the duration of these promotional CDs. And, if your CD is called, you’re entitled to the return of all principal, plus earned dividends, without penalty.

USAlliance says the promotion is for “a limited time only” and that “rates (are) subject to change at any time.”

Although this is standard CD offering boilerplate, it’s worth noting that a promotion conducted by USAlliance last summer for a 2% APY, 2-year CD was so popular it lasted less than 10 days.

So maybe this promotion is worth looking at – with all deliberate speed.
UPDATE 11/4/2014: USAlliance is no longer offering its 13-month special CD at 1.30% APY.

UPDATE 8/5/2014: USAlliance has just reinstated its 13-month special, at 1.30% APY with a $500 minimum and $250,000 maximum for new money only. The offer is limited to one per member.

UPDATE 8/5/2014:USAlliance no longer offers the 13-month special, but it has just added a 25-month special at 1.26% APY ($500 minimum, new money only)

UPDATE 5/23/2014: USAlliance has just raised the rate on the 35-month CD special to 1.71% APY.

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