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Competitive Step-UP CDs and Money Market Account at Connexus Credit Union - Easy Membership

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Connexus Credit Union

Connexus Credit Union is offering two step-up certificates with a 24-month and 36-month term. As described in the credit union's CD page, the step-up CD "gives you the one-time option to step up your rate during the term of the certificate." These rates don't seem to be listed at the credit union's website. I emailed the credit union on Tuesday (3/23/10) and received the following rates:

  • 2.00% APY 24-month $10K minimum
  • 2.50% APY 36-month $10K minimum

These are also available in an IRA. As with any step-up CD, there's always the risk that the institution won't keep the CDs competitive so you may never get the chance to bump up the rate.

Connexus Credit Union continues to offer competitive rates on its Y.E.S Money Market Account. It's a tiered rate account, and the credit union only lists the top rate at its deposit rates page. As of 3/24/2010, the top rate is 1.75% APY. This requires a minimum balance of $100,000. In my contact with the credit union yesterday, I was informed of the following rate tiers as of 3/23/2010:

  • 1.15% APY $1K to $10K
  • 1.30% APY $10K to $20K
  • 1.40% APY $20K to $50K
  • 1.50% APY $50K to $100K
  • 1.75% APY $100K+

No interest is earned on balances under $1,000. It has the typical withdrawal restrictions of a money market account (no more than 6 withdrawals per month). Checks must be a minimum of $250, otherwise there's a $29.95 fee.

I first posted on this money market account in July 2009 so it has a history of high rates. I'm disappointed that they still only list the rate of the top tier. If you email them, they can send you the full rate tiers. They also have an online chat system.

In my July post a reader commented that the credit union does a hard credit inquiry when you open an account. However, additional accounts won't trigger a hard pull if opened within 90 days. A hard pull will temporarily ding your credit score.

Connexus Credit Union had been offering very competitive CD rates, but the rates have gone down. However, they haven't gone down as much as others. The current CD rates as listed in the rates page as of 3/24/2010 include:

  • 1.50% APY 6 months
  • 1.75% APY 12 months
  • 3.25% APY 60 months

Connexus also offers two reward checking accounts (see post) and a competitive health savings account (see post).

Membership is open to members of the Connexus Association. According to the credit union's About Us Page:

anyone can join Connexus Credit Union by first becoming a member of our Connexus Association.

I've been told that the Connexus Association requires a one-time $5 donation, and membership into Connexus Credit Union requires a $5 deposit in the savings account.

The credit union is headquartered in Wausau, Wisconsin. Branches are located in Wisconsin, Ohio and New Hampshire. It appears Connexus started out as an employees credit union for Liberty Mutual Insurance. Most of their branches are in Liberty Mutual offices.

Connexus Credit Union has some decent ratings for safety and soundness: 4 stars (excellent) at BauerFinancial (based on 12/31/09 data) and 4 stars (sound) at Bankrate.com (based on 9/30/09 data). The credit union is federally insured by the NCUA (Charter # 66538).

Thanks to the reader who emailed news of these step-up CDs.

  Tags: money market accounts, New Hampshire, Wisconsin, Connexus Credit Union, Ohio

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Comments
2 comments.
Comment #1 by Anonymous posted on
Anonymous
The rates for the Connexus YES Money Market Account are considered prospective rates only, and may be changed retroactively to the beginning of the month.  In effect, you do not know the rate for the month until the dividend rate is declared at the end of the month.  Connexus determines the actual rate for the month the end of that month (unlike Alliant, which determines the rate during the prior month).

In February, Connexus had a posted rate of 2.00% for the $100K tier.  However, they only paid 1.75% on that tier.  In any month, you will NOT know the actual dividend rate until it is formally declared by Connexus at the end of the month.  This is perfectly legal under NCUA regulations.  However, I'm not aware of any other credit union that does this. 

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