25 Month CD at 2.27% at US Alliance Federal Credit Union

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mptness
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25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by mptness »

Ken Tumin at https://www.depositaccounts.com/blog/ reports:
USAlliance Federal CU Raises Rate On 25-Month Fixed Certificate to 2.27%
Seems like a great rate for someone who needs a 2 year maturity for their ladder.
New members only so I cannot take advantage unless I refer a new member. Easy to join.
learning_head
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by learning_head »

These are callable :-( This is the first time I hear of callable CU/bank CDs. Oh well...

From same blog entry: "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 they have a year worth of penalty for early withdrawal.
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mptness
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by mptness »

learning_head wrote:These are callable :-( This is the first time I hear of callable CU/bank CDs. Oh well...

From same blog entry: "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 they have a year worth of penalty for early withdrawal.
I'm not sure that the callable feature would scare me away. I do agree that if you make an early withdrawal, you would be better off breaking a five year paying around 2% (with a 6 month penalty). But if planning to hold for 25 months, it beats the current 5 year CD rates.
Super Hans
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by Super Hans »

I finally got burned chasing all these CD deals. Every bank/credit union pulls my Chex report when I open an account. I suppose that's reasonable, even though I'm not opening checking accounts that would involve the potential to overdraw. What's less reasonable is pulling thre report multiple times, such as 3 times if I open CDs of three different terms. Now I'm getting declined for new CDs because of excessive Chex inquiries.

The actionable item here is that I suggest you consider whether each deal is worth it in light of an opaque limit on accounts out there.
rec7
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by rec7 »

Super Hans wrote:I finally got burned chasing all these CD deals. Every bank/credit union pulls my Chex report when I open an account. I suppose that's reasonable, even though I'm not opening checking accounts that would involve the potential to overdraw. What's less reasonable is pulling thre report multiple times, such as 3 times if I open CDs of three different terms. Now I'm getting declined for new CDs because of excessive Chex inquiries.

The actionable item here is that I suggest you consider whether each deal is worth it in light of an opaque limit on accounts out there.
Thanks that is good to know.
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Rob5TCP
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by Rob5TCP »

The callable feature is a deal breaker; I prefer to have the option to cancel (EWP). As long as the EWP is moderate, I will go with that over the higher yield that is callable. Synchrony Bank pays .02% less, and has a 6 month EWP. Although that is for 5 years, it's still worth it to me.
123
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by 123 »

Though we have some 5 year CDs at Synchrony Bank I've noticed that there EWP provisions are a little on the sneaky side, at least it seems so to me. The Synchrony Bank EWP rates are based on the current rate at the time of withdrawal and not the CD rate. If rates start to rise and you decide you're in an EWP situation any delay will increase the rate for the EWP as rates rise. Of course if rates go down (maybe unlikely) the actual amount of the EWP could decline as well.
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Rob5TCP
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by Rob5TCP »

123 wrote:Though we have some 5 year CDs at Synchrony Bank I've noticed that there EWP provisions are a little on the sneaky side, at least it seems so to me. The Synchrony Bank EWP rates are based on the current rate at the time of withdrawal and not the CD rate. If rates start to rise and you decide you're in an EWP situation any delay will increase the rate for the EWP as rates rise. Of course if rates go down (maybe unlikely) the actual amount of the EWP could decline as well.
Thank you - I didn't notice that little "extra". That will influence any future deposits I make there.
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sometimesinvestor
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by sometimesinvestor »

Whats a chek report ? Googling was very very unhelpful basically all ads
Imbros
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by Imbros »

sometimesinvestor wrote:Whats a chek report ? Googling was very very unhelpful basically all ads
I am guessing this is what it is.
The Chex Systems, Inc. network is comprised of member financial institutions that regularly contribute information on closed checking and savings accounts. ChexSystems shares this information among its member institutions to help them assess the risk of opening new accounts. ChexSystems does not make account opening decisions for its members. Account opening decisions are made by the member institutions based on their internal policies.
https://www.consumerdebit.com/consumeri ... /index.htm
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stevewolfe
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by stevewolfe »

123 wrote:Though we have some 5 year CDs at Synchrony Bank I've noticed that there EWP provisions are a little on the sneaky side, at least it seems so to me. The Synchrony Bank EWP rates are based on the current rate at the time of withdrawal and not the CD rate. If rates start to rise and you decide you're in an EWP situation any delay will increase the rate for the EWP as rates rise. Of course if rates go down (maybe unlikely) the actual amount of the EWP could decline as well.
This is how the CD early withdraw penalty at my local bank has been for years. I didn't care so much because rates were falling and it lessened the penalty. I made sure to note this on the envelopes in the safe deposit box with the CD because had I needed to cash them early, I would ensure they calculated with the then current rate.

I always felt this was justice each time I purchased a 24 or 36 month raise your rate CD only to see them introduce a 23 month or 30 month or 35 month CD with much higher rate than the 24 or 36 month period... it cuts both ways... :beer
miles monroe
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by miles monroe »

i wouldn't worry a second about the cd being called.

however, according to the comments section of the article this offer has been pulled. congrats to anyone who was able to get in.
LeeMKE
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by LeeMKE »

Super Hans » Fri May 29, 2015 1:20 pm

I finally got burned chasing all these CD deals. Every bank/credit union pulls my Chex report when I open an account. I suppose that's reasonable, even though I'm not opening checking accounts that would involve the potential to overdraw. What's less reasonable is pulling thre report multiple times, such as 3 times if I open CDs of three different terms. Now I'm getting declined for new CDs because of excessive Chex inquiries.

The actionable item here is that I suggest you consider whether each deal is worth it in light of an opaque limit on accounts out there.
Yikes! :shock: I'm in the middle of rolling over CDs in a new ladder and also reorienting our credit cards, so this would be a problem for me. I logged in to Fidelity, didn't find anything that confirmed whether they do this when I buy a CD, called, and it took a transfer to find someone with the correct expertise on a weekend, but did get confirmation that Fidelity does not pull a Chex report when you are buying CDs. :D I like the interface Fidelity has, making it easy to keep track of the CDs and their maturity dates. Fidelity.com/Research/Fixed Income and Bonds/CDs
The mightiest Oak is just a nut who stayed the course.
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mptness
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by mptness »

miles monroe wrote:i wouldn't worry a second about the cd being called.

however, according to the comments section of the article this offer has been pulled. congrats to anyone who was able to get in.
+1
Nice rate for anyone needing to park cash for a couple years (for those who got in).
SpaceCowboy
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by SpaceCowboy »

This CD is again available at the slightly lower rate of 2.01%. Still a good deal on a 2 year + 1 month CD.
john94549
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by john94549 »

"Hot deals" are often available at Ken's blog. You snooze, you lose.


www.depositaccounts.com/blog
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Kevin M
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by Kevin M »

rrppve wrote:This CD is again available at the slightly lower rate of 2.01%. Still a good deal on a 2 year + 1 month CD.
Thanks to rrppve for alerting me about this CD deal by PM, and for letting me know in a more recent PM that the deal is back to the 2.27% APY. I usually don't pay attention to anything less than 5-year terms, since the shorter-term rates usually are not competitive with an early-break strategy, but this one is an exception.

I published a blog post on my experience joining the CU and opening the CD today, and with thoughts on why I like this CD.: USAlliance Financial 2-year CD, 2.27% APY. I didn't see it mentioned so far in this thread, but the balance cap is $100K on this CD.

As mentioned in the blog post, I wouldn't even consider doing an early withdrawal from this CD, since the 12-month penalty is so onerous compared to the term. But the 2-year term is short enough that that's not a concern to me. In this case, a brokered CD would be as good, except that I'm seeing brokered 2-year CD rates at even less than the typical direct 2-year CD rate of about 1.5%.

I hadn't noticed the call provision in the T&Cs, but just as I'm not concerned about the expensive put (early withdrawal penalty) for such a short term, I'm not concerned about a call either.

I thought I had opened tons of CDs over the last five years, and I guess this Chex thing has been totally transparent to me, as I've never had any CD openings refused. Is this something recent? I opened about 10 CDs in a taxable account at Ally Bank in November 2010; no problemo. More recently I opened five of the PenFed 3% CDs between 12/2/2013 and 1/31/2014. What do you have to do for this to be a problem?

Kevin
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EvelynTroy
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by EvelynTroy »

Thanks to KevinM for his detailed blog post describing his US Alliance experience. Last month I had a US Alliance CD mature - all went smooth and efficient getting the CD cashed in; also the opening of the CD, any calls I made to US Alliance all were nicely handled. No problems at all with this CU for me.

Couple things related to the current promotion -

- Because I am now a member of the CU I am not eligible for the current 25 mo./2.27% promotion unless I refer someone. If anyone wishes to purchase one of these CD's if you would private message me I could refer you. This means I give you my name; and you give me your name when you open the CD you give my name and I can then take advantage of the promotion. Thanks very much.

- Wanted to add there are other promotions that might be of interest -
MyChoice CD Special - Add 0.50% to ANY CD Rate (excluding specials)
Minimum to open a CD is $500. eStatements are required. First time members can choose their own promotional CD by adding 0.50% to any CD maturity excluding specials.


These are not callable, can be used with an IRA, no limit on the amount. All reported to me this a.m. by the phone representative. I would double check these details.
I didn't check early withdrawal penalty on these.

https://www.usalliance.org/products-and ... d-specials

Evelyn
Aspen
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by Aspen »

Kevin M wrote:
rrppve wrote:This CD is again available at the slightly lower rate of 2.01%. Still a good deal on a 2 year + 1 month CD.
Thanks to rrppve for alerting me about this CD deal by PM, and for letting me know in a more recent PM that the deal is back to the 2.27% APY. I usually don't pay attention to anything less than 5-year terms, since the shorter-term rates usually are not competitive with an early-break strategy, but this one is an exception.

I published a blog post on my experience joining the CU and opening the CD today, and with thoughts on why I like this CD.: USAlliance Financial 2-year CD, 2.27% APY. I didn't see it mentioned so far in this thread, but the balance cap is $100K on this CD.

As mentioned in the blog post, I wouldn't even consider doing an early withdrawal from this CD, since the 12-month penalty is so onerous compared to the term. But the 2-year term is short enough that that's not a concern to me. In this case, a brokered CD would be as good, except that I'm seeing brokered 2-year CD rates at even less than the typical direct 2-year CD rate of about 1.5%.

I hadn't noticed the call provision in the T&Cs, but just as I'm not concerned about the expensive put (early withdrawal penalty) for such a short term, I'm not concerned about a call either.

I thought I had opened tons of CDs over the last five years, and I guess this Chex thing has been totally transparent to me, as I've never had any CD openings refused. Is this something recent? I opened about 10 CDs in a taxable account at Ally Bank in November 2010; no problemo. More recently I opened five of the PenFed 3% CDs between 12/2/2013 and 1/31/2014. What do you have to do for this to be a problem?

Kevin
So if you had to make a choice due to limited dollars available for the remainder of this year would you choose to invest all available dollars in this USAlliance CD for 2 years @2.27% APR, or reduce the amount in the CD to also do $20K in iBonds (me and spouse) after November's new rate (TBD)?
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Kevin M
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by Kevin M »

Aspen wrote: So if you had to make a choice due to limited dollars available for the remainder of this year would you choose to invest all available dollars in this USAlliance CD for 2 years @2.27% APR, or reduce the amount in the CD to also do $20K in iBonds (me and spouse) after November's new rate (TBD)?
Depends on a bunch of factors. How much is the extra inflation hedge worth to you? How important is building up more inflation-protected, tax-advantaged space? How important is it to have a CD with an excellent rate maturing in two years? Is this money for long term, or do you plan to spend it or use it for something else in two years? What other investments do you have? I'm not really looking for answers to these questions in this thread--just giving examples of various things to think about.

Kevin
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MariaT
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by MariaT »

I just opened the new 25 Month CD Special at 2.27% APY yesterday and it was just perfect timing because the promotion ended yesterday. Except for a minor glitch in setup, everything went well and Avery at USAlliance Financial was great to work with.

Thank you Kevin for your detailed blog as it pushed me to take action on the "fixed income" portion of my AA.

Warm regards,
-Maria
Huwdog
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by Huwdog »

This promotion apparently ended yesterday.
EvelynTroy
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by EvelynTroy »

Yes the 25 mo. 2.27% promotion did end yesterday.
However, there is this one - that I faxed my application and transfer paperwork today for that might work for you:

MyChoice CD Special - Add 0.50% to ANY CD Rate (excluding specials)
Minimum to open a CD is $500. eStatements are required. First time members can choose their own promotional CD by adding 0.50% to any CD maturity excluding specials. Current members may qualify through our member referral program.


Then going to the rate page you can get a 24 Mo. CD @ 1.61% +0.50% = 2.11%

Mine was a transfer of cash in a brokerage IRA account so a little more paperwork.
I could not complete and send my paperwork yesterday because I had questions and could not get through on the phone, busy all day.
It was busy today but discovered using the non-800 numbers on the contact page I got through immediately.
And because I was already a member someone was kind enough to offer their name to me as a referral so I could take advantage of the CD.

Evelyn
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dodecahedron
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by dodecahedron »

john94549 wrote:"Hot deals" are often available at Ken's blog. You snooze, you lose.


http://www.depositaccounts.com/blog
You snooze, you lose--indeed! I am almost tempted to make a whirlwind visit to the Boston area tomorrow to visit a family member and open one of these CDs (30 months at 2.0% with a 90 day EWP, for up to $250K, but must be opened in person at one of their branches north of Boston.)

https://www.beverlybank.com/personal/sa ... posit.aspx
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Kevin M
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Re: 25 Month CD at 2.27% at US Alliance Federal Credit Union

Post by Kevin M »

dodecahedron wrote:
john94549 wrote:"Hot deals" are often available at Ken's blog. You snooze, you lose.
http://www.depositaccounts.com/blog
You snooze, you lose--indeed! I am almost tempted to make a whirlwind visit to the Boston area tomorrow to visit a family member and open one of these CDs (30 months at 2.0% with a 90 day EWP, for up to $250K, but must be opened in person at one of their branches north of Boston.)
https://www.beverlybank.com/personal/sa ... posit.aspx
Darn, I was going to have my fiancee grab one of the USAlliance CDs when she returned today--from her trip to Boston!

I'll have to remember to check out local CD deals when one or both of us travel. Hadn't thought of that before.

Kevin
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