Review of Connexus Credit Union’s Deposit Rates

All accounts require a credit union membership. You can join for free if you live in certain areas of Minnesota, Ohio and Wisconsin, or if you’re an employee or are associated with an employee of certain companies. But if you don’t meet those qualifications, you can join by making a one-time $5 donation to the Connexus Association, Connexus Credit Union’s nonprofit association dedicated to promoting financial literacy.You also need to apply for a new account, and to do this, you’ll need to provide the credit union with basic information about yourself such as your name, Social Security number and address. You’ll also have to provide some form of identification, such as a driver’s license.Another thing to note: If you apply for a deposit account with Connexus Credit Union, it will perform a soft credit pull, which won’t affect your credit.In this article, we’ll discuss the rates and rules for Connexus Credit Union’s accounts. This will help you decide if Connexus Credit Union is right for you. Connexus Credit Union’s Most Popular AccountsAPY

Account Type

Account Name

Compare Rates from Similar Accounts

0.25%

Savings

Connexus Credit Union Savings Account

1.85%

Synchrony Bank High Yield Savings

on Synchrony Bank’s secure website

2.50%

CD Rates

Connexus Credit Union 12 Month Certificate

2.50%

CIT Bank 1-Year Term CD

on CIT Bank’s secure website

2.75%

CD Rates

Connexus Credit Union 36 Month Certificate

2.55%

Ally Bank High Yield 3 Year CD

on Ally Bank’s secure website

3.25%

CD Rates

Connexus Credit Union 60 Month Certificate

3.00%

Barclays 60 Month Online CD

on Barclays’s secure website

Connexus Credit Union CD rates

Connexus Credit Union’s savings account options

Connexus Credit Union’s checking account options

Connexus Credit Union’s Money Market account

Connexus Credit Union IRA accounts

Overall review of Connexus Credit Union’s deposit products

Connexus Credit Union offers great rates on its CDs (which it calls share certificates), but the minimum deposit amount is a little steep.[Chart-ConnexusCreditUnionCDRates]Term

APY

12 months

2.50%

24 months

2.60%

36 months

2.75%

42 months

3.00%

60 months

3.25%

Connexus Credit Union advertises that “you don’t need to invest in a large amount to earn our high yields.” A $5,000 minimum deposit may be less than some other banks, but it’s still considered a “large amount” to many people. If you can afford it, great — this may be a good account for you. But if not, you might need to look elsewhere or save up in one of Connexus Credit Union’s other accounts until you have enough cash to open a share certificate.

Another thing to note with this account is that dividends are paid quarterly. That means instead of getting a deposit of dividends into your account every month, it’ll only happen once every three months. This applies to all other Connexus accounts, as well.

You get three options for handling your earnings: You can accrue them within your certificate account, deposit them into another linked Connexus account or have a check mailed to you each quarter.

If you want to open a Share Certificate account with Connexus Credit Union, you can apply online. When you apply for your share certificate account, you’ll also need to open a basic regular savings or youth savings account and fund it with at least $5.

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Expect to pay fees with this account if you are a frequent ATM user.[ConnexusCreditUnionPersonalSavingsAccount]APY

Minimum Balance Amount

0.25%

$100 to earn APY

This is the account that Connexus Credit Union requires you to open if you have any other accounts. It’s the account that establishes your membership with Connexus.

One important thing to know with this account is that you either have to have another account open, or keep at least $100 balance in the account if it’s your only account with Connexus. Otherwise, you could face a $5 monthly “low savings balance” fee starting 12 months after you close your second-to-last account with Connexus. If you only have this one savings account all along (and no other open accounts) and keep less than $100 in it, you’ll start owing this fee 12 months after opening the account.

This is especially important if you open a Share Certificate, say, and then withdraw the money at the end of the term and close the certificate account. If you don’t close your Personal Savings account as well, or keep at least $100 in it, you’ll owe this fee every month, starting one year after you closed your certificate account.

In addition, you’ll need to make a transaction at least once every 36 months, otherwise you’ll face yet another $5 monthly “abandoned account” fee.

You can apply for a Personal Savings account online.

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This is basically the same account as the Personal Savings account, but those age 23 and under can start earning money right away rather than waiting until they have $100 saved up.[Chart-ConnexusCreditUnionYouthSavingsAccount]APY

Minimum Balance Amount

0.25%

$5

Connexus’ Youth Savings account is available to kids, teenagers and young adults up to age 23. Once you hit age 24, however, it automatically turns into a Personal Savings account.

There aren’t very many differences between the Youth Savings and the Personal Savings accounts. The Youth Savings account waives the $100 minimum balance to earn interest, but all the other rules and regulations stay in place.

Another difference is that with this account, you and your child (12 years and under) can use the Connexus Jr. app that teaches your child about money. It offers features like the ability to assign your child chores in exchange for allowance money, and allows your child to set up savings goals.

If you want to open a Youth Savings account with Connexus Credit Union, you can apply online.

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This is a helpful account if you have trouble saving for Christmas — just know that you can’t take the money out until Oct.1.[Chart-ConnexusCreditUnionHolidayClubAccount]APY

Minimum Balance Amount

0.25%

$0

If you always find yourself going into debt come Christmas, consider opening a Holiday Club account with Connexus. With this account, you set up an automatic deposit of a certain dollar amount with each paycheck. You can’t take the money out during the year (even via ATM), but come Oct. 1, the credit union will automatically deposit the money into another linked Connexus account so you can spend it. If you need the money before then, you’ll need to call up Connexus and have them manually deposit the money into another account that you can use, such as a checking or savings account.

An important thing to note with this account is that it’ll automatically roll over every year, just like a CD. So, if you decide you don’t want to participate in this automatic savings plan, you’ll need to cancel the account before it rolls over again.

If you want to open a Holiday Club account with Connexus Credit Union, you’ll need to apply for an account first. And when you apply for your Holiday Club account, you’ll also need to open a basic Regular Savings or Youth Savings account, and fund it with at least $5.

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Connexus offers good rates on its HSA, but watch out for pesky fees.[Chart-ConnexusCreditUnionHealthSavingsAccount]APY

Minimum Balance Amount

0.50%

$100 - $499.99

1.00%

$500 - $2,499.99

1.00%

$2,500 - $4,999.99

1.50%

$5,000 - $14,999.99

2.00%

$15,000+

If you have a High Deductible Health Plan (HDHP), you’re eligible to contribute to a health savings account (HSA), up to the yearly limit allowed by the IRS. Doing so will also allow you to take a tax deduction.

Connexus’ HSA comes with a debit card you can use to pay for medical bills directly. You can order checks, but that’ll cost you extra. And, if you decide to liquidate and close your account, watch out for one last fee: a $30 “transfer out” fee.

If you have no medical bills or aren’t making any contributions, it can be quite some time before you make any transfers into or out of the account. As with other checking and savings accounts with Connexus Credit Union, there’s a $5 monthly “abandoned account fee” that you’ll need to watch out for. It shouldn’t be a problem as long as you make at least one contribution or withdrawal every three years, but it is something to be aware of, especially with this account.

When you apply for your Health Savings account, you’ll also need to open a Regular Savings or Youth Savings account and fund it with at least $5.

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The one exception is Connexus Credit Union’s HSA, which offers decent rates, especially if you have a larger deposit. Sadly, these high interest rates are likely to be negated by the HSA’s monthly maintenance fee.

In general, Connexus Credit Union’s savings accounts do come with more fees than normal. It’s pretty unusual for a credit union to charge members for the privilege of using an ATM — even an in-network ATM. If you’re a heavy ATM user with your savings account, we suggest you look elsewhere.

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Earn high interest rates with Connexus Credit Union’s Xtraordinary Checking account if you use your checking account often.[Chart-ConnexusCreditUnionXtraordinaryChecking]APY

Minimum Balance Amount

1.75%

$0 - $25,000

0.25%

Over $25,000.01

If you’re looking to earn more returns from the cash you use for everyday purchases, Connexus Credit Union offers a fantastic interest rate on this checking account. However, this high interest rate only applies to the first $25,000 in your account. After that, you’ll earn a lower interest rate.

And this high interest rate doesn’t come without a catch. You’ll need to meet four requirements every month in order to earn this high interest rate:

In other words, this isn’t a set-it-and-forget it account where you can park your money — it’s designed to be used as your primary checking account. If you can meet these requirements, the high interest rate is yours.

Another bonus: If you have this checking account, you’ll also get a 1% rate reduction on a loan through Connexus. To qualify for this interest rate reduction, you’ll need to meet three criteria that are basically scaled-down versions of the requirements to earn the high interest rate with this account. You’ll need to

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If you don’t spend enough each month to qualify for the Xtraordinary Checking account, you can still earn great rates with this account[Chart-ConnexusCreditUnionMyRewardsChecking]APY

Minimum Balance Amount

1.35%

$0-$25,000

0.25%

More than $25,000

This is basically a scaled-back version of Connexus’ Xtraordinary Checking account, and a great option if you can’t meet that account’s requirements of 15 debit card transactions per month and an online bill pay. In return for this lessened requirement, you sacrifice two things: you’ll earn a slightly lower interest rate, and you’ll get two fewer free ATM transactions per month at non-Connexus ATMs.

You’ll still need to meet certain requirements to have a qualifying account. Non-qualifying accounts earn a much lower interest rate and aren’t eligible for any ATM surcharge reimbursements. To have a qualifying account, each month you’ll need to:

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This account appears to offer no advantage over the Xtraordinary and MyRewards checking accounts, even if you can’t meet the minimum requirements to earn the high interest rate for those accounts. The only penalties for not meeting the requirements of those high-earning accounts is that you won’t qualify for the $25 monthly ATM surcharge fee reimbursement, and you’ll earn a lower interest rate on your deposits — but at least you’ll still earn some interest. You can’t say the same thing about this account.

To phrase it another way: you will probably be better off signing up for the Xtraordinary or MyRewards checking accounts over this checking account, even if you can’t meet the requirements for the high interest rates on those accounts. At least that way, you will earn some interest, and you may qualify for the high interest rates if you have a bumper month in spending.

However, if you decide to stick with this account, there is still one perk: you’re eligible for a 1% interest rate discount, should you ever take out a personal loan. All you need to do is

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Connexus offers 54,000 ATMs nationwide, but in the event you do find yourself needing to use an out-of-network ATM, you’re limited to up to six free transactions per month. Connexus will still reimburse up to $25 in ATM surcharge fees from the ATM’s owner, however, as long as you meet your monthly account requirements for the Xtraordinary and MyRewards accounts.

If you use ATMs frequently and aren’t near any Connexus ATMs, consider opening an account with a credit union or bank that does offer unlimited fee-free ATM use, even at out-of-network ATMs.

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Connexus Credit Union’s Money Market account sounds good — until you take into account the fees and lowered interest rates for not meeting certain requirements.[Chart-ConnexusCreditUnionMoneyMarketAccount]APY

Minimum Balance Amount

1.15%

Over $100,000

1.00%

$50,000 - $99,999.99

0.75%

$20,000 - $49,999.99

0.60%

$10,000 - $19,999.99

0.50%

$1,000 - $9,999.99

0.00%

$0 - $999.99

This money market account earns a high rate, with one stipulation: You need to also have an active checking account in order to earn the above interest rates. In order for your checking account to be active, you need to have at least one direct deposit per month, sign up for electronic statements and make at least 10 transactions per month via check, ACH or debit card. If you don’t meet those requirements with your checking account, you’ll earn much lower rates on this money market account.

There are a few other unusual rules as well. If you make a withdrawal, it needs to be at least $250. You can write checks from this account (if you order a box of checks — it’s $16.90 for a box of 100 checks) and there is no fee for your first three checks of the month, but after that, you’ll pay $29.95 per check.

You can also only make a total of six transactions per month via check, ACH, Digital Banking or telephone. (This isn’t unique to Connexus’ money market account — Regulation D limits transactions out of all savings and money market accounts.) If you need to get around these limits, you can make unlimited transactions through an ATM or at an in-person Connexus branch (if you’re lucky enough to live near one).

You can apply for a money market account online, and you’ll also need to open a basic Regular Savings or Youth Savings account and fund it with at least $5.

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Connexus Credit Union offers a decent interest rate with its money market account. But, not everyone will qualify for these high interest rates, because you need to meet a separate set of requirements with a second checking account.

In addition, there are a lot of strange rules that go with this account, such as being charged to write checks after a certain number each month, and not being able to withdraw money unless it’s above a certain threshold level.

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These are carbon copies of Connexus Credit Union’s regular Share Certificates, but they operate within the framework of an IRA.[Chart-ConnexusCreditUnionIRACertificates]Term

APY

12 months

2.50%

24 months

2.60%

36 months

2.75%

42 months

3.00%

60 months

3.25%

If you’re looking to save for retirement in an NCUA-insured environment and earn the most money possible through Connexus Credit Union, these accounts might be right for you. This IRA Certificate operates under all the same rules as its regular Share Certificates, with one caveat: these accounts are opened within the framework of an IRA, allowing you to save for retirement and potentially get certain tax advantages.

Otherwise, all the same rules apply. The account will automatically renew at maturity, unless you specify otherwise. If you don’t give them any instructions on what to do after the certificate matures, you’ll still get a 10-day grace period to make any changes to the certificate, or withdraw it.

One important thing to note: If you do decide to close your IRA account, be warned that you’ll also owe a $30 fee.

You must apply for an IRA Certificate account, and you’ll also need to open a Regular Savings or Youth Savings account and fund it with at least $5, if you don’t already have one.

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There are a few strikes against these certificates, though. As with its regular CDs, the minimum buy-in for a single CD can be quite high for someone just starting out with their retirement savings. One final word of caution is the fee for closing your IRA, something that many other credit unions don’t charge.

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This IRA savings account offers good rates for those getting started with saving for retirement.[Chart-ConnexusCreditUnionIRASupremeAccount]APY

Minimum Balance Amount

Rates without Active Checking

0.25%

$0 - $1,999.999

0.40%

$2,000 - $4,999.99

0.50%

$5,000 - $9,999.99

0.75%

$10,000+

Rates with Active Checking

0.75%

$0 - $1,999.999

1.00%

$2,000 - $4,999.99

1.25%

$5,000 - $9,999.99

1.50%

$10,000+

If locking your money up for a set period of time isn’t your thing, or if you don’t have the $5,000 minimum buy-in for a CD yet, consider opening an IRA Supreme savings account instead. You can save up to the maximum IRA yearly contributions in this account, minus any money you set aside in other IRA accounts for that year.

This account also comes with a pesky $30 “IRA plan closure” fee, so be warned if and when you close this account.

You can apply for an IRA Supreme account online, but you’ll also need to have a Regular Savings or Youth Savings account and fund it with at least $5.

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Compared with most other banks and credit unions, Connexus Credit Union is a bit hit-or-miss. It does offer noteworthy rates on its CDs and rewards checking accounts; however, not everyone will be able to take advantage of these high rates. In the case of its rewards checking accounts, there are a lot of stipulations you’ll need to meet before you’re eligible for the high interest rate, while the minimum deposit size for its CDs is a bit steep.

There are very few account maintenance fees, which is nice, but some of its accounts are plagued with many other fees, such as Connexus’ money market and IRA accounts.

If you’re looking for high interest rates on CDs and checking accounts, Connexus could work out great for you if you can meet the requirements for these accounts. Otherwise, you may be better off at another bank or credit union.

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