If you’re vying for a higher yield on your savings, you may have to turn to a credit union.
Mountain America Credit Union is giving savers something to shout about. Its 5-year CD already had a top rate, but now it’s even higher. Consumers nationwide can earn 2.6 percent APY, up one-tenth of a percentage point.
The new rate is more than two-tenths of a percentage point higher than those offered by Popular Direct, Synchrony and M.Y. Safra Bank. In fact, it’s the country’s best 60-month CD yield.
|M.Y. Safra Bank||2.36%||$5,000|
|First Internet Bank of Indiana||2.30%||$1,000|
You don’t need much skin in the game to qualify for the deal. The minimum deposit is just $500.
Should you buy a 5-year CD?
A long-term CD may not fit into your financial plan. And relinquishing access to your funds for five years may not be feasible.
If you can afford to sock away money for an extended time period, Mountain America’s deal may be worth buying into. It may be a while before you see a better long-term rate.
Generally the longer the CD term, the higher the fee for early withdrawals. Mountain America’s penalty is particularly harsh. Prepare to lose as much as 365 days’ dividends on the amount you deposited.
How to join
Mountain Credit Union is based in West Jordan, Utah. But you don’t have to live there to become a member.
One of the easiest ways to join is to belong to an association that partners with the credit union. One example is the American Consumer Council, which offers membership to anyone who pays a $5 fee.
Membership also is open to:
- Immediate family members of current members
- Residents of five Idaho counties and five Utah counties (in certain census tracts)
- Employees of one of the Select Employer Groups
A primary savings account with a minimum $5 deposit is required for all members. You can apply for membership and open a savings account at the same time.
How to buy Mountain America Credit Union CDs
Members can only purchase Mountain America Credit Union CDs over the phone or in a branch. If you’re not near a branch location, you can sign up for a savings account online and then call to open your 5-year CD.
To apply, you’ll need a Social Security number and a driver’s license.
To make the initial deposit into your CD, you can mail a check or request a wire transfer. The incoming wire transfer fee is $10. You could also call and have funds from your Mountain America savings account transferred into your new CD.
About Mountain America Credit Union
Mountain America is a federally-chartered credit union. Founded as the Salt Lake Telephone Employees Credit Union in the 1930s, it changed its name in 1984 following a merger. After a second merger, Mountain America became one of the largest credit unions in the state of Utah.
The credit union has more than 80 branches in five states. It earned four out of five stars on Bankrate’s latest Safe & Sound Ratings, which measures the financial health of banks and credit unions throughout the United States.