Arizona Federal Credit Union’s Monthly Membership Fee

POSTED ON BY

After the uproar in 2011 about large banks ending free checking accounts and adding new fees, Bank Transfer Day and the Move Your Money movement became popular. Many credit unions advertised themselves as a better alternative to the megabanks. Articles were written here and in the media about how switching to credit unions can save you money. However, not all credit unions are created equal, and some credit unions may cost you more than the megabanks.

One example of a credit union that may be more costly than a megabank is Arizona Federal Credit Union. In January, the credit union started to charge membership dues which charge most all adult members $3 per month. A reader mentioned this fee in the discussion forum. I reviewed the credit union’s fee page, and sure enough, it was listed. I also called the credit union yesterday and confirmed that the membership dues apply to just about all adult members.

During the financial crisis, Arizona Federal Credit Union had some difficulties. According to the AZCentral.com, in 2009 it had a massive fourth-quarter loss and an undercapitalized position. However, it has made a lot of financial progress since then. According to the credit union’s 2011 annual report, it “posted a net operating gain of $45.0 million” for 2011, and according to the financial data at the NCUA, it posted a net income on December 2012 of $44.5 million. In summary, I don’t see a financial reason for membership dues.

I’m sure the credit union officials hope that members will see enough value in the credit union’s services and rates to make the membership dues worthwhile. The credit union’s Everything Account (which combines a savings and checking account and is required for membership) does have some nice perks. Also, the credit union does offer some competitive CD rates (i.e. 2% APY 5-year CD as of 4/2/2013).

Willing To Pay Membership Dues for Higher CD Rates?

For savers, this brings up an interesting question: Would you be willing to pay membership dues if this would give you access to higher CD rates? For some it may come down to math. Do the higher rates pay for the member dues? If you live in Phoenix, you do have other options for competitive CD rates. Mountain America Credit Union still offers a 2% APY 5-year CD as of 4/2/2013, and it has a Phoenix and a Mesa branch (membership and accounts can also be opened online). And there is no monthly membership fee at Mountain America Credit Union.

Related Pages: CD rates



Top 5-Year CD Rate at Arizona Federal Credit Union

Arizona Federal Credit Union is one of the few remaining institutions still offering a 2.00% APY 5-year CD. Minimum deposit is $500 ($100 for IRA certificates). Its 4-year share certificate is also fairly competitive with a 1.50% APY. However, the shorter-term CDs have much lower rates. These rates are listed in the credit union's certificates rates page as of 8/30/2012.

One downside with Arizona Federal's 4-year and 5-year share certificates is a large early withdrawal penalty. It's equal to 720 days dividends. This is shown at the bottom of the rate...

Continue Reading
4.20% 15-Month CD at Arizona Federal Credit Union
Arizona Federal Credit Union is offering a competitive 15-month certificate with an APY of 4.20%. Minimum deposit is $500. This is listed in the credit union's rate table as of 12/09/08.

Arizona FCU often offers a special 15-month CD. My last post on this credit union was in September 2007 when it was offering a 5.85% 15-month CD. As you can see, the rate environment for savers is much worse now than what it was last year.

Membership is open to anyone who lives, works, worhships or attends school in Maricopa County,...



Continue Reading
5.85% 15-Month CD at an Arizona CU - $100k (Arizona Federal)
Arizona Federal Credit Union continues to offer a special 15-month share certificate. They've recently increased the top yield to 5.85% APY for a minimum deposit of $100k. The lower deposit rates are the same as I had reported in July. The lower yields range from 5.50% APY for a $500 minimum, 5.60% APY for a $50k minimum and 5.65% APY for a $75k minimum.

Field of membership includes anyone who lives, works, worhships or attends school in Maricopa County, Pinal County or the City of Tucson. Membership requires a minimum $25...

Continue Reading
5.65% 15-Month CD at an Arizona CU (Arizona Federal)
Arizona Federal Credit Union is offering a special 15-month share certificate with a yield of 5.65% APY for a minimum deposit of $75K. A 5.50% APY is available with only a $500 minimum deposit. See rate table for the details.

My last report on this credit union was in March when it was offering 5.65% APY on 9 month CDs.

Field of membership includes anyone who lives, works, worhships or attends school in Maricopa County, Pinal County or the City of Tucson. Membership requires a minimum $25 in the share savings...



Continue Reading
5.65% 9-Month CD at an Arizona CU (Arizona Federal) - Update
Arizona Federal Credit Union is offering a special 9-month share certificate with a yield as high as 5.65% APY for a minimum deposit of $75K. Smaller minimums have a lower rate. You can still get a 5.50% APY with only a $500 minimum. The longer term CD rates are also competitive with rates as high as 5.65% APY.

Field of membership includes anyone who lives, works, worhships or attends school in Maricopa County, Pinal County or the City of Tucson. Membership requires a minimum $25 in the share savings account.

The credit...



Continue Reading

More Past Offers



The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.