USALLIANCE FCU Review September 2024: A credit union with solid interest yields on some savings and CD products

USALLIANCE was founded in 1966 to serve IBM employees. The credit union has more than 150,000 members worldwide, including IBM, American Express, and PepsiCo employees. It has nine branch locations across its four-state footprint. In addition to deposit accounts, USALLIANCE also offers lending products, retirement services, and insurance. At the end of 2023, the credit union reported assets of $3.09 billion. 

All rates and fees are current as of September 19, 2024, and are subject to change. 

Table of Contents

Toggle

USALLIANCE FCU

Checking accounts:	Starting at $0 per month
Savings accounts:	Open with as little as $1
CD rates:	Earn up to 4.50% annual percentage yield (APY)

Pros and Cons

Pros

• Variable savings rates are among some of the best rates on the market
• Co-op shared branches allow you to conduct basic transactions in person nationwide
• The credit union offers a wide range of non-deposit products, including lending, retirement accounts, and insurance

Cons

• Some of the savings rates are low compared to other credit unions
• Checking does not earn interest
• While co-op shared branches are available nationwide, some services may be limited at those branches

Who is USALLIANCE FCU good for? 

USALLIANCE is a good choice for people looking for a reasonable savings rate, so long as you don’t mind that the account has a variable rate. The savings account currently earns 4.55% APY but that rate can change daily.

Also, even though most of the credit union’s branded branches are in the northeast United States, with co-op shared branches, you can access a physical location for basic transactions nationwide. This could make it a good choice for people who prefer in-person banking. Finally, the credit union offers a wide range of nondeposit accounts, so it could be a great option for those who need lending products, retirement services, or insurance.

Who shouldn’t use USALLIANCE FCU?

While the credit union’s high dividend savings has a solid rate of return, most of the rest of the savings products have rates lower than other credit unions and online banks. Some users may find better rates elsewhere. Also, users who want to earn interest on checking balances will have to check out other options, as the USALLIANCE checking account does not earn interest.

Finally, while the co-op shared branches are a great option for physical location access nationwide, these shared branches often allow limited types of transactions. For true full-service, in-person banking, you may want to consider a financial institution with a branded location close to home. 

USALLIANCE FCU rates and products

While it doesn’t earn interest, USALLIANCE does offer a free checking account. It also has a checking product specifically for teenagers. In addition, the credit union offers three savings products, a money market account (MMA) and certificates of deposit (CDs). Outside of its High Dividend Savings and CD products, many of the rates are low.

Checking accounts 

USALLIANCE offers two checking accounts, both being free checking accounts with no monthly maintenance fees. One of the two accounts is specifically for teenagers. The credit union does not offer a checking account sign-up bonus.

USALLIANCE MyLife Checking Account

The standard checking account for customers 18 and older is the MyLife checking. It has no monthly fees or minimum balance requirements. It offers early pay, allowing you to get paid your direct deposit up to two days early. You can withdraw cash from one of more than 30,000 USALLIANCE and co-op network ATMs for free. Out-of-network transactions charge 1% of the transaction as a fee. 

All USALLIANCE deposit accounts require a $1 deposit to open the account. One drawback is that this account does not earn interest.

Savings accounts

There are three savings accounts available for USALLIANCE members, with one of those set aside for kids under the age of 13. Only one of the three accounts would be considered a high-yield savings account. 

USALLIANCE MyLife Savings Account

This savings product has no minimum balance requirement to earn interest. It earns 2.00% APY on the first $500 in the account, then 0.02% on balances above $500. There are no monthly maintenance fees with this account.

USALLIANCE High Dividend Savings Account

USALLIANCE’s high-yield savings account is its variable rate High Dividend Savings. It requires a minimum balance of $500 to earn interest. You can earn 4.55% APY on balances above $500. It is a variable rate that could change daily, so it’s essential to monitor the rate to ensure it isn’t dropping too much. The account does not charge any maintenance fees, and interest compounds daily and is paid monthly.

USALLIANCE FCU savings rates compared to current top rates*

While USALLIANCE FCU is a great option, some institutions offer higher interest rates. Compare the rates above to this list of competitors:

Money market account

There is one MMA available, and it offers rates lower than many of the best MMAs on the market. It has tiered interest rates ranging from 0.05% APY on balances less than $2,000 to 0.60% APY on balances of $1 million or more. Your rate changes automatically as your balance moves above or below tier thresholds. There is a limit of six withdrawals per month.

Check out our primer on MMAs for more information about the difference between MMAs and savings accounts.

Certificates of deposit

USALLIANCE offers CDs ranging from three to 60 months in length, with rates ranging from 4.00% APY to 4.50% APY. While rates are solid, some competitors offer higher CD rates.

All CDs require a $500 minimum opening deposit. USALLIANCE charges an early withdrawal penalty on all CDs except a special 11-month no-penalty CD. This penalty is 180 days of dividends on CDs with an original maturity date of less than 18 months and 360 days on CDs with an original maturity date of 18 months or longer. 

You can get individual retirement account (IRA) CDs of all lengths except for the 11-month no-penalty CD.

Other services USALLIANCE FCU offers 

USALLIANCE offers a wide range of products and services in addition to its deposit products, including:

• Credit cards: The credit union offers three credit card products, each having its own benefits. One card gives rewards and travel perks, another has a low everyday rate, and the final one allows you to build credit with a secured credit card.
• Health savings account (HSA): USALLIANCE allows you to open an HSA, saving money for health expenses in a tax-advantaged savings account.
• Personal loans: You can borrow money for short-term expenses, debt consolidation, and automobile or motorcycle purchases.
• Mortgage loans: Multiple home loans are available through USALLIANCE, including first-time home buyers, fixed-rate and adjustable-rate mortgages, jumbo loans, home equity lines of credit (HELOC), and home equity loans.
• Specialty loans: If you want to buy a boat, an airplane, an RV, or a high-end automobile, USALLIANCE has specialized lending products to meet your needs.
• Investment products: In addition to its IRA CDs, you can access both traditional and Roth IRAs through the credit union. 
• Insurance: Whether you need auto insurance, health insurance, or personal insurance, USALLIANCE has products and services available.

Online banking

You can access your account information through the credit union’s digital banking products, including online banking and mobile apps. You can personalize your dashboard so you see the accounts and information most important to you first. The platform also provides a spending analysis, allowing you to see where your funds are going each month.

You get upgraded card controls and spending alerts with online banking. You can also set up advanced alerts, and transfer funds easily online. Zelle does not list USALLIANCE as a partner bank, and it is not mentioned on the credit union’s website. So, you will have to use the credit union’s in-house transfer app or ACH transfers to move money externally.

The USALLIANCE FCU platform and customer support 

You can access your USALLIANCE account via desktop or mobile application. The mobile apps are highly rated, earning 4.9 stars out of 5 based on more than 2,500 ratings on the Apple App Store and 4.8 stars out of 5 based on over 800 reviews on Google Play.

To contact the credit union’s customer service, call toll-free Monday through Friday from 7:30 a.m. to 8 p.m. Eastern and Saturday from 9 a.m. to 3 p.m. ET. You can also email customer service, reach them by traditional mail, or stop in at a branch location.

Is USALLIANCE FCU secure?

USALLIANCE provides the security features you would expect from your financial institution. You can set up fingerprint or facial recognition in the app for maximum security. You can also set up multifactor authentication (MFA), which can be set up via text, voice, push authentication, Google Authenticator, or call center-generated. 

You can set up and customize alerts to help you avoid fraud. Those alerts are sent via email, push notification, or text for account activities, payments, overdrafts, and login security.

Deposits in the credit union are insured by the National Credit Union Administration (NCUA) for up to $250,000 per depositor.

USALLIANCE FCU user reviews

Online reviews are mixed for USALLIANCE, but they are also limited. The credit union earned 2.5 stars out of 5 based on about 30 reviews on DepositAccounts and 2.5 stars out of 5 based on around 50 reviews on WalletHub. Positive reviewers mentioned being long-time credit union members and being satisfied with the products and services provided. Negative reviews had issues with the slow or unhelpful responsiveness of customer service.

Compare USALLIANCE FCU alternatives

USALLIANCE FCU	PenFed Credit Union	Bellco Credit Union
Top savings APY	Top savings APY	Top savings APY
4.55% APY	3.00%	4.00%
Top checking APY	Top checking APY	Top checking APY
None	0.35%	4.50%
Top CD APY	Top CD APY	Top CD APY
4.50%	4.00%	4.75%
Other services	Other services	Other services
Credit cards HSA Personal loans Mortgage loans Specialty loans Investment products Insurance	Credit cards Auto loans Mortgages Personal loans Student loans	Business services HSA Wealth management Insurance Fraud protection
Learn more	Learn more	Learn more
Compare more alternatives	View offer at MoneyLion	View offer at MoneyLion

Is USALLIANCE FCU right for you?

For customers located near a USALLIANCE branch looking for a credit union for their banking needs, USALLIANCE could be a good choice. This is especially true if you want a wide range of nondeposit products and services. Some of the interest rates offered are lower than those of its competitors, and if you’re looking to earn interest on checking balances, you’ll need to choose an alternative. However, USALLIANCE is a solid credit union that can help you earn interest on reserve funds and meet specialty lending needs. 

Frequently asked questions