bank rates

USAlliance FCU CD Specials – Going Fast

calculator resting on top of notebook with penIt was great while it lasted – which wasn’t very long.

I’m referring to USAlliance Federal Credit Union’s recent 2-year CD promotion, featuring a 2% APY.

That rate was off the charts – a full 0.75% better than the highest 2-year rate on our CD Rates Leaderboard.

And, with such a favorable rate, it was apparently very popular.

So popular, in fact, that the offer, launched in late June, was abruptly discontinued last weekend.

But don’t despair.

USAlliance has kept in place, for now, two other CD promotions.

One offers an 11-month CD with a 1.01% APY. The other, a 13-month CD with an even better 1.31% APY.

Compare these to the leading 1.05% APY for 1-year CDs on our Leaderboard.

The bad news is each CD deal has a “one CD per term per member” limit, with a maximum balance of $100,000.

The minimum deposit is $500.

USAlliance (, headquartered in Rye, N.Y., operates branches in New York, New Jersey and Massachusetts.

It has about $740 million in deposits. As a federal credit union, it’s NCUA-insured.

USAlliance has a 2-star Bankrate Safe & Sound rating, which signifies a financial status judged to be “below peer group.”

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

However, it includes anyone nationwide who donates $15 to Arc of Westchester (WARC), a charitable organization helping children with developmental disabilities. The credit union will make the donation for you.

To join USAlliance, you also must open a savings account with a $5 minimum deposit.

Before you sign up, please 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.”

In my experience, it’s quite unusual for a bank or credit union to have an early call feature covering all of its CDs.

Callability is often seen in longer-term CDs offered in the brokered CD market.

Some institutions also issue callable CDs directly (like Salem Five and PNC Bank). But these are usually a separately identified deposit product from standard CDs, which aren’t callable.

Nevertheless, the call feature has to be judged in the light of the short-term nature of these promotional CDs. And, if your CD is called, you’re entitled to the return of all of the principal, plus earned dividends, without penalty.

I established three of the 2-year CDs before that promotion ended, but wish I could have opened more.

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  1. Kathy at Bankaholic said:
    on July 19th at 09:14 am

    USAlliance’s 13-month special CD has expired. You can still get the 11-month special CD at 1.01% APY.