Connexus CU Has 12-Month CD and 60-Month CD
Connexus Credit Union (Connexus) was a prolific producer of competitive CDs during 2015 and 2016. Beginning in 2017, rates dropped, Share Certificate Specials dried up, and Connexus was no longer a rates race leader. This past January, Connexus made a strong showing by raising the rates on all its Share Certificates, and more importantly, offered the first nationally available 3.00% 5-year CD.
This weekend saw across-the-board rate increases (between 33-75 bps) and the addition of a new 42-month Share Certificate. Connexus is back in the game.
The Share Certificates can be opened with a $5k minimum deposit, with no stated balance cap. Unlike some of Connexus’ prior Share Certificate offerings, no checking account is required to earned the stated APYs.
All the Share Certificates are available as IRAs (Traditional and Roth), earning the same APYs with the same funding requirements.
As stated in the Truth-in-Savings disclosure, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity of one year or less:
The penalty will equal 90 days dividends on the amount withdrawn subject to penalty.If your account has an original maturity of more than one year, but less than five years:
The penalty will equal 180 days dividends on the amount withdrawn subject to penalty.If your account has an original maturity of five years or greater:
The penalty will equal 365 days dividends on the amount withdrawn subject to penalty.
Thanks to the DA reader, DAJunky, who shared the news of the Connexus rate increases in a Forum post.
Availability
Headquartered in Wausau, Wisconsin, Connexus Credit Union offers many ways to join, including,
Easy membership: 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 16 companies and organizations qualify for membership.
Residency - Individuals who line in any of the following communities are eligible to join:
Minnesota – Brooklyn Center, Crystal, Golden Valley, Hopkins, Minneapolis, New Hope, Robbinsdale, and St. Louis Park.
Ohio – Cincinnati metro area.
New Hampshire – Dover and Portsmouth.
Wisconsin – Rothschild, Schofield, Wausau, and Weston.
Complete eligibility details are listed Connexus’ Membership Eligibility page.
Joining Connexus can be done either online, or in person at any of the eight Wisconsin branches located in Wausau (6) and Weston (2), or the sole public Ohio branch both located in Cincinnati. Connexus also has branches for Liberty Mutual employees only in Dover and Portsmouth, New Hampshire; Fairfield, Ohio; and Wausau, Wisconsin. As the result of a merger, Connexus has acquired four branches in Minnesota, located in Brooklyn Center, Golden Valley, and Minneapolis
Opening any of these Share Certificates can now be done online. The Share Certificates can also be opened at any of the above mentioned branch locations or by phone (800.845.5025).
Credit Union Overview
Connexus Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 8.33% (excellent), based on December 31, 2017 data. In the past year, Connexus increased its total non-brokered deposits by $187.54 million, an excellent annual growth rate of 16.34%. 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 20 years, through acquisitions, mergers, and expansion, Connexus increased its membership to more than 308,800 members, with over $1.6 billion in assets.
How the Share Certificates Compare
When compared to the 212 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Connexus Credit Union's 12-month Share Certificate APY currently ranks first.
When compared to the 205 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Connexus Credit Union's 24-month Share Certificate APY currently ranks third.
When compared to the 206 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Connexus Credit Union's 36-month Share Certificate APY currently ranks second.
When compared to the 175 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Connexus Credit Union's 42-month Share Certificate APY currently ranks first.
When compared to the 184 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Connexus Credit Union's 60-month Share Certificate APY currently ranks first.
The above rates are accurate as of 5/21/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
So, despite the fact that 100% of Fed Funds futures investors have been predicting a June rate increase for two months, you think the rate increase will be a surprise, and prompt CD rate increases.
Doesn't seem coherent to me, but I certainly would others who believe now is not the time to invest.
Not very.
I think it's highly unlikely someone would leave out 4 words instead of just one.
This is a long shot, but has anyone who has bought CDs from Connexus (especially the 1-year) in the past, ever been offered a third option - to have ALL the interest be paid at the termination date of the CD? (Ally Bank, for example, does this, although their statements do show you what interest has been "accrued" along the way).
Or if Connexus does not do this - are there other financial institutions (besides Ally) that do?
(The reason for asking such an odd question involves a one-off situation that will unavoidably result in a healthy increase in taxable income this year but not later, so I'm trying to push other income to 2019.)
Although my Ally CD interest accrued in 2017 was well over $10, a 1099 was NOT generated by Ally for this interest. I checked again, since you seemed so certain, plus I called Ally. They said it is correct that it was not generated, because interest will be paid at the end of the CD term (exactly as I stated above), which will be in 2018. My 2018 1099 will include all interest for both years.
Now, if you have an answer to the question I actually DID ask, then thanks. Otherwise....
In the past, I had accounts at a couple of the Korean banks, and they pay simple interest paid at maturity. I don't know if that is till how they do it, but probably. One was Pacific City Bank in Los Angeles. I think the other was Center Bank in Los Angeles, but that has been merged into I think Hanmi Bank.
I had a CD mature at this place mature this year. A few weeks before maturity I sent them a secure email telling them to dump the CD funds into my savings account at maturity.
I received a reply stating that I would have to call them once the CD had matured. So, I did and that's when things got strange. That's annoying, but nothing unusual.
The CSR I spoke to told me that "due to the size of the CD", I would have to answer some security questions. This was a first! So, I assumed they would be asking the normal questions that I used when creating the account.
Wrong! She started asking me questions that where obviously being taken from my credit report. So, I told her that since I had my credit reports frozen that all of my answers would probably be rejected.
She told me that wasn't the case and to go ahead and answer the questions. I answered all of the questions properly and surprise, surprise they were rejected. So, she said I couldn't close the CD!
I said, now wait a minute. First, I'm not asking you for a check or anything. I just want the money transferred to my savings account. How does that require any enhance security?
Second, if the whole point of the security questions was to verify my identity, then surely having sent you a secure email thru my online account should be adequate.
Plus, I calling you from the telephone number that has been on the account since its inception. So, if that's not good enough, what is?
I told her in no uncertain terms that if they renewed my CD despite my instructions not to, that I would be closing all of my other accounts at Connexus. And, filing a complaint with the NCUA. And, seeking legal advice.
She then said that she would talk to a supervisor to see what options I had. A few minutes later, she came back and said that they would honor my request.
That 1 year CD doesn't look too bad. But, if its big enough, be prepared to enter the twilight zone when you want to do anything but renew it!
Reps double down when accused or attacked, and will adamantly insist under assault they are most certain of matters they are evidently most confused about, whereas deft and patient questioning can oftentimes coax a recognition they may be mistaken and need to search out the right answers. Supervisors can be just as uncomprehending, of course, so a satisfactory outcome is still never guaranteed.
Connexus told me the same thing...that I need a checking account with an ATM card in order to have anything transferred internally for purposes of withdrawing upon maturity (or even depositing). Additionally, even though they show shared branches on their web-site, they DO NOT participate with any (only the ATMs would work). So yeah, be prepared upon maturity or initial deposit.
Waste my time opening saving acc(required), made 100 dollar deposit (required), they say they can't stop the creation of saving so we have to wait until that's done AND money transfered in before they can cancel and withdraw. lol... what a waste of time.
Was able to pick up a couple of small secondary market CDs early this morning, 13 months at 2.54% and a 3.5 month one at 2.20%. (That 3.5 month one was very rare because usually the fee makes it hard to get an above market rate)
And, as usual, both were small amounts, almost not worth bothering with.
The entire system to me seems like something out of the 80s. Slow, cumbersome & hard to navigate.
Many orders are all or none which means an hour I guess. Unless you change it. But today, I was trying to take a small offer of 2 CDs and I thought I got it only to find out later that my order was cancelled apparently because someone beat me to that issue. And instead of leaving the order open for an hour, they automatically cancelled mine.
I confused it with a fill because the alert sounded like a fill and I have bought enough to know.
But I could not read the entire popup and hours later I realized that I never got those 2.
I am used to an active trader platform for stocks but the secondary CD system is just like pitiful.
Apparently active traders use a bloomberg which I do not have.
Warren Buffet says not to own CDs/Bonds but gosh, stocks just seem overvalued to me. And I have a hard time buying.
When I was 30, I was in a constant state of "margin call" but luckily my broker at the time never took action because they knew I was good for it.
In a rising rate environment, bonds you hold get impacted the hardest and face greatest risk of losses. And all bonds will be impacted by that.
Stock also are negatively impacted by rising rates -- at least once they rise high enough -- but generally to a lesser extent than bonds. Maybe a master investor like Buffet can identify and buy only the stocks that will be the ones making money despite rising interest rates, and so made that comment, but no one else can pick and choose well enough to avoid the rising rates impact.
FDIC or NCUA CDs will not lose money, but also will not gain you much if anything as compared to inflation.
But every now and then I get an ok buy.
Picked up ten today.... of course, some trolls will say I owe massive income taxes. (Despite being in a very low tax bracket)
95% of the secondary market CDs are bad deals compared to brokered. When you find a good one, you only have a minute to decide usually.
Action Buy
CUSIP 02006L2N2
Description ALLY BK MIDVALE UTAHCD 1.60000% 05/13/2019
Quantity 10
Coupon 1.600
Maturity Date 05/13/2019
Trade Date 05/22/2018
Settlement Date 05/24/2018
Order Type Price Limit at 98.980
Time in Force Fill or Kill
Trade Type Margin
Mark-up 0.10
Price w/Mark-up 99.080
Effective Yield 2.565622
Accrued Interest 5.70
The cost of this trade without mark-up $9,903.70
Mark-up(%) $10.00 (0.101%)
Cost of this trade with mark-up $9,913.70
I don't compare available secondary yields just to the new issues, I compare them to other available choices like the Connexus 1 year at 2.50%. So, 6 basis points on a 12 month CD is not a huge windfall by any means.
Alternatively, once your basic membership is funded (typically via an external checking account), and a new primary share savings account is established, you should be able to wire or ACH (preferably externally initiated 'push' to avoid possible CU low $ limitations) transfer funds to savings, following up with a CSR phone-in request to open the CD with those funds.
For any transaction over 10K, you have to play the game of 20 questions derived from an outfit called Lexis Nexis.
They're a third-party "identity verification" service that culls your personal information from a variety of sources.
From what I was told, having my credit reports frozen had nothing to do with failing to answer the questions.
But, that same CSR gave me bogus information by stating to get around this I just had to send a secure email.
This is despite the fact that I had already told here that was not the case. That's why I had to call.
I've never had to put up with this sort of stuff just to transfer a maturing CD to a savings account anywhere else.
The whole thing is just so incredibly stupid.
The don't use the security questions that I set-up on my account (the answers are bogus ones only I know).
Nope, they're using data from a third-party that's readily available since the Equifax hack to anyone that wants it.
And, to top matters off, according to Krebs On Security's website, the third-party they use was hacked in 2013!
So, I'd better get on the "dark web" and purchase my own identity data.
Maybe then, I'll be able to answer the questions right!
It is not one of the credit agencies, your credit freeze does not affect it.
But they ended up asking me, out of the blue on the phone, the day and month birthday of a lady I had lived with ending about 15 years prior and hadn't had any contact with since then. Hadn't given her a thought in years, and couldn't answer the question on the fly.
Though I did learn, when you're on the phone, supposedly, you can tell the rep you'd like them to ask a different question and they won't penalize you, as long as you don't answer the question wrong. Of course, that doesn't work with the automated, press the number voice response systems that some banks use.