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Update on Connexus Credit Union's CD and Reward Checking Rates - Available Nationwide
Connexus Credit Union has increased the rates on their internet CDs, but they added an interesting catch. The 6-month CD rate is now very competitive at 1.50% APY. The other rates are also competitive: 1.75% APY for 12 months and 3.00% APY for 60 months. These rates are listed at the credit union's deposit rates page as of 8/12/2010.
The catch is that these CD rates now require an "active checking". Here's how they define active checking in the small print:
Active Checking is defined as having at least 1 Direct Deposit of net pay, including salary, wages, government benefits or pension made to the account each month; having 10 checks and/or signature debit card transactions clear the account by the last business day of each month; and electing to receive eStatements.
Note how similar these requirements are to their reward checking requirements. So if you already have one of their reward checking accounts, you should be able to easily qualify for these CD rates.
Reward Checking
The bad news about their reward checking accounts is that the rates have gone down. The top rates as of 8/12/2010 are 2.55% APY for up to $25K in the Xtraordinary Checking and 2.25% APY for up to $25K in the MyRewards Checking. As I described in my 2008 review of these accounts, the Xtraordinary Checking requires 15 debit card purchases a month instead of 10 that's required by MyRewards Checking. It also has an extra requirement of bill pay.
Connexus Credit Union has been offering a reward checking account since 2007 when the yield was 6.01%. There are not many reward checking accounts that have been available nationwide for 2 or more years that have held up well. Danversbank is one of the exceptions. It continues to pay 4.01% APY on balances up to $25K.
Other Accounts
Connexus Credit Union also has good deals on a money market account and an HSA. Please refer to this review for more info on these accounts.
Membership
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.
Credit Union Overview
The credit union is headquartered in Wausau, Wisconsin. Branches are located in Wisconsin, Ohio and New Hampshire. It appears Connexus started out as an employee-based credit union for Liberty Mutual Insurance. Most of their branches are in Liberty Mutual offices.
Connexus Credit Union's rating for safety and soundness are above average: 4 stars (excellent) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 4 out 5 at DepositAccounts.com (see our financial overview for Connexus Credit Union). These ratings are based on March 2010 data. The credit union is federally insured by the NCUA (Charter # 66538).
