Connexus Credit Union CD Rates Substantially Increased Again
It’s only been three weeks ago since Wisconsin-based Connexus Credit Union’s (Connexus) Certificate became rate-leaders, following increases of between 74-84 bps. As DA reader, SYC, noted in a Forum post yesterday, the Connexus rates are once again “Ahead of the pack, it appears.” SYC is referring to Connexus’ most recent Certificate rate increases, which range between 61-101 bps. Any of the Certificates can be opened with a $5k minimum deposit, with no stated balance cap.
All Certificates are offered as IRA Certificates (Traditional and Roth), earning the same APYs with the same deposit requirements.
As stated in the FAQs, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity of more than one year, but less than five years:
The penalty will equal 180 days dividends on the amount withdrawn subject to penalty.If your account has an original maturity of five years or greater:
The penalty will equal 365 days dividends on the amount withdrawn subject to penalty.
Funding and Maturing Funds
According to CSR, a Certificate can be funded through ACH, wire transfer, by check, or through an internal transfer. Connexus participates in the CO-OP Share Branch network, making the transfer of funds relatively easy.
Maturing funds can be distributed by check (fee free) or transferred into another Connexus account. An outgoing ACH transfer initiated from Connexus is possible, but there are limitations:
If the amount is $25,000 or under an ACH could be processed with a $10 fee.
Anything over $25,000 would need to be wired and a $20 fee would apply.
There is a 10-day grace period before a Certificate automatically renews.
Money Market Account
At the beginning of May, Connexus raised two of the Money Market Account (MMA) rate tiers, with balances of $100k+ currently earning 1.11% APY and balances between $20k and $99.999.99 currently earning 1.00% APY. Balances between $1k and $19.999.99 earn 0.25% APY.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 1.11*% | $100k | - | Connexus Credit Union | Money Market Account | |
| OTHER TIERS: 0.25% → $1k - $20k | 1.00% → $20k - $100k | |||||
The MMA maintained competitive rates throughout the pandemic, consistently placing near or at the top of DA’s bi-weekly Latest Liquid Bank Account Rates Summary. In July 2021, Connexus restructured the MMA, reducing the number of rate tiers from five to three and eliminating the active checking requirement.
The MMA can be opened with a minimum $1k deposit. There is no penalty or service fee if the balance falls below $1k after opening, but a minimum daily balance of $1k must be maintained to earn any interest. Four fee-free withdrawals or transfers may be made each month, with a $9 fee for each withdrawal/transfer beyond the allowed four. There is a monthly $5 inactivity fee for MMA with no activity in 12 months and a month-end balance of less than $100.
Availability
Headquartered in Wausau, Wisconsin, Connexus Credit Union’s field of membership (FOM) offers a way to join for virtually any U.S. citizen/resident alien with a valid Social Security number.
Easy membership requirement – Membership in Connexus Credit Union is open to virtually anyone by joining the Connexus Association, with a one-time $5 donation that will directly benefit one of many supported organizations.
Employment or Affiliation – Employees, retirees, family members, or members of more than 20 companies and organizations (including Liberty Mutual Insurance) qualify for membership.
Residency – Individuals who live in any of the following locations are eligible to join:
Illinois counties – Boone, Jo Daviess, Knox, Lake, McHenry, Stephenson, Warren, or Winnebago.
Minnesota communities – Brooklyn Center, Crystal, Golden Valley, Hopkins, Minneapolis, New Hope, Robbinsdale, or St. Louis Park.
Ohio communities – Cincinnati or Norwalk.
Wisconsin counties – Adams, Clark, Juneau, Langlade, Lincoln, Marathon, Portage, Shawano, Taylor, Waushara, or Wood
Wisconsin communities – Baron, Chippewa, Columbia, Dane, Dodge, Iowa, Milwaukee, Oneida, Ozaukee, Price, Racine, Rusk, Sauk, Washington, or Waukesha.
Relationship – “Spouses, family members, and those living in the same household of an existing member” are also welcome to apply.
Complete eligibility details are listed the Connexus Membership Eligibility page.
Joining Connexus and/or opening a Certificate can be done either online,* or in person at any of the five branch locations that are currently open. According to Connexus’ Branch and ATM Locations page, the open branch locations include four in Wisconsin (Stevens Point, Wausau (2), and Wisconsin Rapids) and Brooklyn Center, Minnesota.
*According to the FAQs, “It can take up to three business days for an application to be approved or denied.
You will also be asked to make a $5 deposit into your savings account to establish your membership. That deposit is yours to withdraw should you decide to cancel your Connexus Credit Union membership.
As a member of the CO-OP Shared Branching network, Connexus provides its members with access to more than 6,000 shared branches throughout the country. Connexus also participates in CO-OP and Money Pass ATM networks, giving members surcharge-free access to more than 54,000 ATMs.
Credit Union Overview
Connexus Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 14.41% (above average), based on December 31, 2021 data. In the past year, Connexus increased its total non-brokered deposits by $507.57 million, an excellent annual growth rate of 20.19%. Please refer to our financial overview of Connexus Credit Union (NCUA Charter # 66538) for more details.
Founded in 1935, the Credit Union was originally established to serve the employees of Employer’s Mutual, the predecessor of Wausau Insurance (1980). In 1998, Wausau Insurance was acquired by Liberty Mutual Insurance and membership was extended to all Liberty Mutual employees and retirees nationwide. Over the next 24 years, through acquisitions, mergers, and expansion, Connexus increased its membership to more than 389,000 members, with assets in excess of $3.8 billion.
How the Certificates Compare
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, no bank or credit union offers a higher rate than currently offered on any of the Connexus Credit Union Certificates. The following table compares the Connexus Credit Union Certificates to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 5/19/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
Am losing patience with Ally, today pushed some powder to Connexus money market.
Does beat the competition though, pathetic as that might be.
Now - is this the time to lock up funds for 5 years ?? Or should we hang tight ?? Decisions, decisions .............
“CBB’s website is light on documentation (no Truth-in-Savings to be found); the following information is from a conversation with CSR.
* CDs must be opened in-branch and can be funded by check, ACH, or wire.
* The Early Withdrawal Penalty (EWP) for all CD terms is 90 days interest on the amount being withdrawn. Partial withdrawals are allowed.
* Maturing funds can be distributed through cashiers check, wire, or internal transfer.”
This wouldn’t be the first time that CSR’s are giving conflicting info.
Will Connexus allow push and pull ACH transfers from an external FI? I spoke with a Connexus CSR recently who said she didn't know and would have someone contact me with an answer. I've not heard anything from Connexus yet. I am concered about funding and transfer of funds into and our of Connexus accounts. Thanks in advance for any insight.
Sent you a PM. Thanks for your help.