Back in 2011 Connexus Credit Union used to have very competitive CD rates. That changed a year ago when its CD rates had big cuts. Over the last year those CD rates have held steady while the rates at other institutions have fallen. So Connexus CD rates are again competitive. It's one of the few institutions that still offers a 2.00% APY 5-year CD. However, there is an important downside. The top rate requires that you have an active checking account.
One recent change at Connexus is that two new CD terms are listed. A 2-year and 3-year CD are now shown. Below are the CD rates listed at Connexus deposit rates page as of 9/6/2012:
- 2.00% APY 5-year CD
- 1.75% APY 3-year CD
- 1.30% APY 2-year CD
- 1.10% APY 1-year CD
- 1.00% APY 6-month CD
Minimum deposit is $10,000 with no maximum deposit. An active checking is required. 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.
A Connexus member has reported being told by CSRs that ACH deposits from bank-to-bank transfers don't count as a direct deposit.
On the bottom of the deposit rates page, they do have a link to the account disclosure which has several CD details. Unfortunately, the 5-year CD has a harsh early withdrawal penalty: "365 days dividends on the amount withdrawn." Also, withdrawals of principal can only be done if Connexus "agrees at the time you request the withdrawal." I have some additional CD details in my 2011 review.
If you want an active checking account to qualify for the above CD rates, you should consider one of the two reward checking accounts: Xtraordinary Checking and MyRewards Checking. Meeting these monthly requirements should also give you the active checking status for the CDs. Unfortunately, the rates on these reward checking accounts have fallen quite a bit since I first reported on them in 2008. My last review of these were in May.
Connexus Credit Union also has good deals on a money market account and an HSA. Please refer to my money market review for more info on these accounts.
Membership & Application
Membership is open to members of the Connexus Association. According to this Connexus page:
Anyone in the United States may join the Connexus Association, and the only requirement to join is that you make a one-time $5 donation to the Association that will directly benefit one of many supported organizations. Then, once you're a member of the Association, you will be eligible to join Connexus Credit Union and experience all the benefits of Connexus membership.
There's also a $5 minimum balance required for the savings account to maintain credit union membership.
There's an online application that can be used to join via the Connexus Association and to open accounts with funding done by ACH transfer from an existing account.
Credit Union Overview
The credit union is headquartered in Wausau, Wisconsin. Connexus 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 has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 11.90% (above average) based on June 2012. Please refer to our financial overview of Connexus Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 66538).
How These CD Rates Compare
Connexus is one of three all-access credit unions that still offer a 2.00% APY 5-year CD. The other two are Mountain America Credit Union and Pen Air Credit Union. These other two don't have the active checking requirement.
The best 5-year CD rate at a bank (that's nationally available) is 1.90% APY at CIT Bank. BBVA Compass still offers a 2.00% APY 5-year CD, but this is only available in a few states where BBVA Compass has branches.
These rates are accurate as of 9/6/2012.
Searching for Top CD Rates
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.