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How 4 Teachers Use Side Hustles to Stay Afloat

Tuesday, October 23, 2018

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Brittney LaryeaBrittney Laryea
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It’s no secret that American educators as a whole aren’t well-compensated. Throughout 2018, in multiple states across the country, educators have publicly demanded salary increases, benefits and more funding for public education through staged walkouts and marches at state capitols. The protests have intensified a national debate about how we value teachers and the future of public education.And then there are the statistics:

  • The Bureau of Labor Statistics (BLS) reports the average annual pay was $58,780 in 2017 for the nation’s 4.2 million preschool, primary, secondary and special education teachers. The average annual expenditure per consumer — the average spending budget for American households — for 2017 was $60,060.
  • An analysis of teacher salaries by the National Education Association reports the average classroom teacher salary is up 15.2% over the past 10 years. However, after adjusting for inflation, the average salary has actually fallen by $1,823 or 3.0% over the same period.
  • In 2017, teachers earned 19% less than similarly skilled and educated professionals, what’s referred to as a “teaching penalty,” according to the Economic Policy Institute.
  • Nearly one in five teachers leave the profession because of low pay, according to the Learning Policy Institute.

Meanwhile, many teachers have taken on side hustles or second jobs as a solution to stagnant wages in their chosen profession. Some sell their expertise by sharing lesson plans and other tools to be used by other educators via platforms like Instagram and sites like TeachersPayTeachers.

Others have taken on side hustles in the gig economy. Airbnb, for example, reports nearly 10% of its U.S. hosts — more than 45,000 people — are teachers. And, based on a Brookings Institution analysis of BLS data, elementary and secondary school teachers are about 30% more likely to work a second job than non-educators.

With that in mind, MagnifyMoney spoke with four educators about what they do on the side to make ends meet at home, and to share their advice for any educators considering taking on a side hustle.

Lorri Lewis

The 12th grade English teacher worked as a driver for Uber and Lyft to fund her wedding planning business. Now she has a fully funded emergency fund and can afford to take vacations.

Lorri Lewis, 50, of Southfield, Mich., told MagnifyMoney she has always been an advocate for having multiple streams of income. So when the 12th grade English teacher and newly single mother of two saw an opening for a paid wedding coordinator at her church in 2002, she jumped at the opportunity to try out a longtime interest. Then, about five years ago, Lewis started driving for Uber and Lyft to raise the seed money she needed to launch her own wedding coordinating business. Lewis also made Instacart deliveries once her youngest son entered college.

“Having multiple streams of income is a big thing in my life now because I’m at the top of the pay scale and want to do other things in my life, like travel,” said Lewis, referring to educator salary schedules set by school districts. The educator notes because there’s no room for a raise, her pay technically decreased a couple of years ago when she and her co-workers started paying a larger portion of their health care expenses.

Earlier in 2017, Lewis ditched the gig economy in favor of running her business.

“The nice thing about being a wedding coordinator is that it allows me to work on the weekends and the summers, which is “off time” for teachers anyway,” said Lewis.

Where the side hustles help

Lewis’ teacher salary is just enough to cover the basics, including her mortgage, utilities and student loan payments. Until recently, the majority of her side income went to raising her kids as a single parent, completing necessary home repairs and funding her business. She said it was a struggle, but now that both of her sons are out of the house, Lewis has enough to build a financial cushion.

“I’m at the point now where I’m actually accumulating an emergency fund since becoming an educator,” Lewis told MagnifyMoney. Lewis’ career in education spans 20 years.

Advice to other teachers

Lewis’ main suggestion to other educators looking to start a side hustle is to find something you can do in the off-hours, like on weekends and during summers.

“Outside of the emails and phone calls, I schedule rehearsals on Fridays and weddings are on Saturdays, so I still have Sunday to regroup and organize for the new school week,” Lewis said. She added that it’s nice to do something that doesn’t involve working with students or children so teachers can get a break from their work environment.

Cecily White-Cooper

The middle school English for Speakers of Other Languages (ESOL) teacher tutors online, sells T-shirts she designs and creates teaching materials so she can travel and fund the holidays.

Image courtesy of Cecily White-Cooper

Cecily White-Cooper, 40, in Laurel, Md., told MagnifyMoney the predominant side hustle throughout her 18-year teaching career has been tutoring. It was a necessity, both when she started her career in California and when she moved to Maryland.

“I was on the bottom tier of the pay scale,” White-Cooper said. “I was not making enough money either here in Maryland or California in order to survive.”

In California, she began by finding clients on Craigslist and tutoring students at the local public library. After moving to Maryland, she tutored with a company based in Washington, D.C., until it became too much of a hassle to travel and find a babysitter after having twins in 2009. At that point, White-Cooper turned online, teaching English to students in China through VIP Kids.

Though tutoring has always been a staple side hustle, White-Cooper also has other income streams. She designs and sells T-shirts through Merch by Amazon, Redbubble and Etsy. White-Cooper also produces her own teaching material and sells that on TeachersPayTeachers.

White-Cooper’s experience as a lifelong side hustler inspired her blog, TeacherCes.com — from which she earns some advertisement income — and a podcast of the same name, where she shares advice and interviews with other moonlighting educators.

Where the side hustles help

“Initially when I started up until when I got married, every year I had to have something going on. It was hustle, hustle, hustle annually,” White-Cooper told MagnifyMoney. White-Cooper married about eight years into her teaching career. Having a dual-income household means the extra income is no longer a necessity, but she maintains her side hustles because they provide extra money she can use to travel or pay for seasonal expenses like holiday debt.

Advice to other teachers

“There will be something that will suffer,” White-Cooper said. “For me, it’s my social life.” But she makes up for the lost time with vacations once in a while, like a trip to Las Vegas with her friends.

White-Cooper added that having a side hustle and a family has also forced her to manage her time more efficiently to be successful.

“I’m very selective about what I do and where I go in order to get my tutoring projects and all of that finished,” she said. “I do my personal projects during my lunch hour. Then once the day is over at 3 p.m., I eat lunch.”

White-Cooper said she also gets to bed earlier so she can be up early on the weekends to work in her home office before the twins wake up.

Shannon Mitchell

The high school English teacher turned to multilevel marketing companies to get the money her family needed to fix their home sewer system. Now, she runs her own jewelry business.

Image courtesy of Shannon Mitchell

It was a poor housing market, low wages and a broken sewer system that drove high school English teacher Shannon Mitchell, 40, in Fredericksburg, Va., to seek side income through multilevel marketing (MLM) companies in 2013.

“With teaching, there’s no overtime — there is no other way to make money unless you get a second job,” Mitchell said.

Upon realizing there was no other option to earn the funds to fix the sewer system, she told herself, “‘Here I am, 35, and I have to ask my parents for money.’ I was like, ‘No way. I’m taking the bull by the horns.’”

Where the side hustles help

Mitchell became a representative for Rodan and Fields, where she said she quickly made the money she needed to repair the sewer system. She later worked for an MLM called Keep Collective before ending her side gigs with MLMs in 2016.

Although Mitchell says she and her husband have always generally lived beneath their means, she says the side income from her work with multilevel marketing firms helped them have a more flexible lifestyle and extra funds for life’s emergencies. Mitchell no longer has these income streams, but she started a porcelain jewelry business, which she runs outside of teaching, and hopes it will eventually become profitable.

Advice to other teachers

While many teachers seek extra-income opportunities within the world of education, Mitchell recommended not limiting yourself to the profession. She encouraged teachers to follow their interests.

“Don’t feel like it’s all or nothing with teaching,” Mitchell said. “You can be a good teacher and also explore other things as well.”

Finally, Mitchell warns any educators interested in multilevel marketing to “be smart about it” and weigh the pros and cons.

“Don’t buy into their hype,” said the MLM veteran, who mentioned that she didn’t have the control over her business the way she thought she would when participating in an MLM.

Jessica Cioffi

The 5th-grade teacher walks dogs with Wag! to fund humanitarian trips.

Jessica Cioffi, 32, an educator based in Los Angeles, told MagnifyMoney she first looked into dog walking in June 2017.

“The summer came and some of my travel plans had fallen through, so I had some extra time on my hands that I needed to fill,” said Jessica. With travel out of the picture, she said she decided to turn to her other love: dogs. She started walking dogs through an app called Wag!

Where the side hustles help

At first, dog walking was a fun way for her to exercise, hang with dogs and get paid, but when Cioffi realized the income could help her pay humanitarian trips she wanted to do, she was motivated to walk more often. She dog walks up to 8 miles a day on the weekends and in the summer.

Advice to other teachers

Cioffi advised using breaks to earn extra income with a side hustle.

“Summer is a great time to take on extra work, especially if it is something you can find joy in,” Cioffi said. “For myself, regardless of income, Wag! was a great way to interact with animals, get outside and meet incredible people.”

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brittney Laryea
Brittney Laryea |

Brittney Laryea is a writer at MagnifyMoney. You can email Brittney at brittney@magnifymoney.com

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College Students and Recent Grads

America’s Biggest Millennial Boomtowns

Monday, October 22, 2018

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Kali McFaddenKali McFadden
millennial boomtowns
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In August, we published our study of America’s biggest boomtowns. It looked at three categories of data — industry growth, population and housing changes and workforce opportunities. As a follow-up to our study, we are providing a look at the top 50 metro areas that are attracting millennials and helping them prosper.

Using four metrics (millennial population change, workforce participation, unemployment rate and median wages), we scored the top 50 cities. A 100 was the highest possible score.

Here is a look at our findings.

Hover over a metro in the map below to see how it performed between 2011 and 2016.

Key findings

  • San Francisco topped our list of millennial boomtowns with a final score of 89, thanks to top growth in the millennial labor force, wages and overall population.
  • Denver and Austin, Texas, come in second and third, with scores of 80.6 and 80. The two cities saw notable millennial population growth and dropping unemployment rates.
  • All but two of the top 10 metros lie west of the Mississippi River. Four are on the West Coast and two are in Texas.
  • Virginia Beach came last on our list, mostly due to its shrinking millennial labor force and lackluster unemployment numbers. It had a final score of 9.7.
  • Providence, R.I., and Philadelphia rounded out the bottom three with scores of 13.3 and 21.7, respectively. Providence actually lost almost 3% of its millennial population, and wages for millennials in Philly only rose by 2.4%.
  • Oklahoma City saw the biggest wage increase: Millennials in 2016 enjoyed 33.6% more in median earnings than they did in 2011, although that still leaves them behind 32 other metro areas in terms of absolute dollars.
  • Unemployment among millennials was nearly cut in half in Nashville, where the rate dropped from 10.3% to 5.3% (a 48.1% change).

The scope of our research

Using the Pew Research Center’s definition of millennials (those born between 1981 and 1996) means that a portion of millennials would have been minors or pursuing an education or job training in 2011. To avoid including the working statistics of high schoolers, we limited this study to people born between 1981 and 1991, meaning people who would be between the approximate ages of 20 and 30 years old in 2011.

Even with that restriction, it’s important to remember that in general, people enjoy better employment opportunities and see higher wages as they gain experience, skills and workplace sophistication. Also, more people enter the workforce as they complete their educations, which often happens in their early 20s. Therefore, at least some of the increases in workforce participation and earnings are due to the natural age progression of this cohort.

Even so, we find that the millennial population is growing – and prospering – more in some places than in others. Millennials who live in the metros at the bottom of our list may be at risk for accruing more debt and less wealth over their lifetimes, thanks to opportunity losses. Those who move to the cities at the top of the list may find that they’re better equipped to pay down debt and gain assets at a faster rate as they gain toeholds in more lucrative job paths.

The elements of a millennial boomtown

More millennials

We tracked the five-year (2011-2016) population changes of those born between 1981 and 1991. Interestingly, millennial populations actually decreased in nine of the 50 metros we analyzed, which demonstrates that many millennials are actively migrating.

Labor force participation

It’s a truism in economics that when local working conditions and opportunities improve, many people who don’t participate in the workforce will decide that it’s a good time to pursue outside employment. Therefore, we wanted to see not just the change in overall population, but the change in the number of people who work or are actively seeking work. The size of the labor force generally increased, even in places where the millennial population shrank, except in Providence and Virginia Beach.

Unemployment

How much has the unemployment rate declined for millennials over that five-year period? Unemployment for the nation as a whole has dropped significantly since 2011, but there’s a big difference between the 19.6% drop for millennials in Las Vegas and the 48.1% drop in Nashville.

Median wages

We calculated the change in median wages for those born between 1981 and 1996. As discussed above, we would expect wages to go up for this group, generally, simply because they aged and gained worked experience during the intervening years. However, we found that median wages actually dropped a smidge in Richmond, Va., and Washington, D.C.

The biggest millennial boomtowns

1. San Francisco

Final score: 89.0
Housing is a struggle in San Francisco, but that isn’t deterring millennials. While the overall population of millennials increased by 16.2%, the millennial workforce jumped by 31.1%. To put that into context, the workforce increase represents about 5,000 more people than the population increase. That could be because so many people in the Bay Area have secondary and advanced degrees, meaning they may not have entered the workforce until they were well into their 20s, or may have dipped out of the workforce to further their education.

The unemployment rate for millennials dropped 40.3%, which is fairly impressive. That still only put San Francisco at No. 15 for highest unemployment rate drop among millennials. Fourteen other metros had bigger drops, including Detroit (42.9%), Minneapolis (44.4%), and Columbus, Ohio (45.7%).

But for millennials who are working, median wages have skyrocketed 32.4%, to $40,304. That’s the second highest wage on our list after neighboring city San Jose, and the second largest wage increase after Oklahoma City.

2. Denver

Final score: 80.6
Denver boasts the biggest increase of the millennial population between 2011 and 2016, at 18.7%.

Its 27.9% increase in labor force is second to San Francisco. But about 13,000 of the new arrivals aren’t working or are looking for work. That may be because despite the second sharpest drop in millennial unemployment (46.3%), median millennial wages have only increased 13.1%, to $32,243. That increase is the 15th smallest jump on our list.

3. Austin, Texas

Final score: 80.0
Austin has changed immensely in recent years. It has seen a population explosion over the last few years, and millennials were certainly part of that burst. Their numbers increased by 17.5%, the second biggest gain on our list behind Denver.

Despite an impressive workforce gain of 22.6% (5th highest), more millennials simply moved to Austin over joining the workforce. However, that’s not surprising for a major university town with extensive graduate and undergraduate programs.

Further, unemployment dropped 45.1% for millennials — the fourth biggest decline on our list — and median wages increased 21.7%, to $30,228.

4. Nashville, Tenn.

Final score: 76.4
Nashville seems eager for new millennial employees, as demonstrated by the biggest drop in unemployment of any metro on our list (48.1%). The city also has the 6th lowest millennial unemployment rate (5.3%). Overall, the millennial population increased by 11.4% (9th highest), and the labor force rose by 16.7% (15th highest).

Although Nashville also saw the third highest median wage increase (30.4%), that still only increased median wages up to $29,220. That median wage puts Nashville in the middle of the pack in terms of absolute dollars.

5. San Jose, Calif.

Final score: 74.7
The seat of Silicon Valley is the first place on our list where more millennials entered the labor force than actually moving into the metro. The millennial population increased by 13.3%, and 27.5% more are working or looking for work. That comes out to a difference about 4,000 people.

That’s somewhat surprising considering the relatively mediocre millennial unemployment rate of 6.7% (18th lowest) and comparatively modest median earnings increase of 25.9% (10th highest on the list). Of course, millennials in this city see the highest earnings of any metro on our list, with a median wage of $42,319.

The most sluggish cities for millennials

50. Virginia Beach, Va.

Final score: 9.7
Virginia Beach came in last on our list by performing dismally across all four metrics. The metro did enjoy a small bump (3.2%) of millennials between 2011 and 2016, but 2% fewer millennials were engaged in the labor force, the worst showing on our list. That could be because while the 7% unemployment rate isn’t the highest on our list (Riverside, Calif., takes home that honor), the 20.3% reduction was actually the smallest across the 50 metros.

Median wages for millennials have only increased 6.6%, which is 7th lowest among metros we reviewed, to $28,212. That median is distinctly middle of the pack, but the growth rate suggests there may be wage stagnation, as we would expect this age group to see wage gains just by moving from entry-level to more experienced levels over that five-year period.

49. Providence, R.I.

Final score: 13.3
Providence saw its millennial population drop by 2.8%. Part of this may be attributed to the fact that Providence is a college town. Thus, this drop may represent millennial students who have moved on after completing their undergraduate and graduate degrees. However, we did find that this metro area had one of the smallest population increases in our previous study.

Similarly, the millennial labor force shrank by 0.3%. The high millennial unemployment rate of 8.5% (8th worst) may have something to do with that, along with the 11th lowest income increase (9.9%).

48. Philadelphia

Final score: 21.7
Perhaps it’s no surprise that the millennial population of Philly only increased by 0.7%. Unemployment for that age group is 8.8% and median earnings only increased by 2.4%. That earnings increase represents a paltry five-year cost of living raise for most people.

The millennial workforce did rise by 10.6% during that period, however. It seems that local residents are picking up whatever new jobs are becoming available.

47. Richmond, Va.

Final score: 26.3
Richmond has the ignominy of the worst wage change for millennials. Median earnings went down by 2.1%. Washington, D.C., was the only other metro to see a negative earnings change, at 1%, but still managed to rank 18th overall, thanks to strong showings in other categories.

Although Richmond has a respectable millennial unemployment rate of 7.6%, an unemployment decrease of 32.3% was 12th lowest on our list and thus didn’t earn many points. A workforce increase of 12.4% was dead center of the pack, and the millennial population growth of 3.9% ranked 32 out of 50.

46. St. Louis

Final score: 26.8
St. Louis saw its millennial population shrink by 1.1%. Workforce participation was up by 6% (40th out of 50), but some or all that can probably be attributed to young adults entering the workforce after school or training, rather than attractive economic conditions.

Even though median earnings in 2016 were the 16th highest at $30,228, the earnings increase of 14.2% ranked 33rd highest on the list of 50. Despite these findings, a March 2018 study we conducted found that St. Louis was one of the best places for working women.

Top 5 and bottom 5 cities in each metric

Top 50 metro areas in the U.S.

Methodology

Using data from the U.S. Census American Community Survey, hosted on American FactFinder and by IPUMS USA, we tracked the five-year change between 2011 and 2016 (the last year for which all data was available) for those born between 1981 and 1991. This represents a subset of millennials, who are generally defined as those born between 1981 and 1996 (the reason for limiting the population to this subset is described above). These millennials would have been between the approximate ages of 20 and 30 in 2011 and 25 and 35 in 2016.

We limited the review to the 50 largest metropolitan statistical areas (“MSAs”) due to limited data availability.

The analyzed metrics were:

  • Population data included the age groupings of 20-24 and 25-29 for 2011; and 25-29 and 30-34 for 2016.
  • Labor force data included the age groupings of 20-21, 22-24 and 25-29 for 2011; and 25-29 and 30-34 for 2016.
  • Employment data included the age groupings of 20-21, 22-24 and 25-29 for 2011; and 25-29 and 30-34 for 2016.
  • Median wage data is for those born between 1981 and 1991.

Because the U.S. Census has changed the boundaries of some MSAs in the intervening years, we collected the data from FactFinder at the county level and then mapped it to the current MSA borders.

Each data series was scored relative to the other metros so that the biggest positive change received a score of 100 and any 0 or negative changes received a score of 0 (except for unemployment rate, where this was reversed). The highest possible score for each metric was 100 and the lowest was 0. The four metric scores were then summed and divided by four for a final score. The highest possible final score was 100 and the lowest was 0.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Kali McFadden
Kali McFadden |

Kali McFadden is a writer at MagnifyMoney. You can email Kali at kali.mcfadden@magnifymoney.com

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Earning Interest

The Best CD Rates – October 2018

Monday, October 22, 2018

Any opinions, analyses, reviews or recommendations expressed in this articles are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any lender or provider of the products listed.

Nick ClementsNick Clements
The Best CD Rates
iStock

Updated October 22, 2018

If you are looking for a better yield on your savings, a high rate CD (certificate of deposit) offered by an online bank could be a good option. Internet-only banks offer much better interest rates than traditional banks. For example, a 12-month CD at Bank of America would require a $10,000 minimum deposit and would pay only 0.07%. At an online bank, you could earn 2.55% with no minimum deposit. (If you would rather get a savings account or money market with no time restriction, look at the best savings accounts or best money market accounts).

The Best CD Rates in October 2018

This list is updated monthly, and competition continues to intensify. Here are the accounts with some of the best CD rates:

Term

Institution

APY

Minimum Deposit Amount

 

1 year

Barclays

2.55%

$0

LEARN MORE Secured

on Barclays’s secure website

Member FDIC

2 years

CD Bank

3.00%

$10,000

LEARN MORE Secured

on CD Bank’s secure website

Member FDIC

3 years

KS StateBank

3.22%

$500

LEARN MORE Secured

on KS StateBank’s secure website

Member FDIC

5 years

KS StateBank

3.49%

$500

LEARN MORE Secured

on KS StateBank’s secure website

Member FDIC

See a full list of the best CD rates below.

  • 1 year – 5 years: Barclays Bank – 2.55% – 3.10% APY, no minimum deposit

12 Month Online CD from Barclays Barclays is one of the oldest banks in the world. Although they’re based in London, they do have a U.S. presence and offer competitive rates on their CDs and savings account. Currently, they’re offering some of the highest CD rates in the market, and they have an edge over the rest of the institutions on this list: they don’t require a minimum balance to earn the APY or open an account. Deposit as little or as much as you’d like into a term of your choice and you can start earning interest as long as the account is funded within 14 days of opening the CD. Additionally, your funds are insured through the FDIC.

  • 1-year: 2.55% APY
  • 2-year: 2.60% APY
  • 3-year: 2.65% APY
  • 4-year: 2.75% APY
  • 5-year: 3.10% APY

LEARN MORE Secured

on Barclays’s secure website

Member FDIC

  • 6 months – 6 years: Goldman Sachs Bank USA – 0.60% APY – 3.15% APY; $500 minimum deposit

Goldman Sachs Bank USA
Our advertiser Marcus by Goldman Sachs is the online consumer bank of Goldman Sachs Bank USA (the large investment bank). Your funds are FDIC insured, and Goldman offers very competitive rates. Even better: there is only a $500 minimum deposit. So, if you don’t have enough money to meet the minimum deposit of the other banks on this list, or you are looking for another bank for your savings, GS is a good option. It also doesn’t hurt that they also offer some of the best CD rates in the market today. Here are their rates:

  • 6-month: 0.60% APY
  • 9-month: 0.70% APY
  • 12-month: 2.55% APY
  • 18-month: 2.55% APY
  • 2-year: 2.60% APY
  • 3-year: 2.65% APY
  • 5-year: 3.10% APY
  • 6-year: 3.15% APY

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

  • 3 months – 5 years: Synchrony Bank – 0.75% APY – 3.10% APY; $2,000 minimum deposit

Synchrony Bank
Synchrony used to be a part of GE, and now has an online bank that pays competitive rates. The online deposits are used to fund their store credit card portfolio – and the company is publicly traded. Your deposit will be insured up to the FDIC limit. In a rising rate environment, this is a great way to get a high interest rate without locking yourself into a long term.

  • 3-months: 0.75% APY
  • 6-months: 1.00% APY
  • 9-months: 1.25% APY
  • 12-months: 2.50% APY
  • 15-months: 2.75% APY
  • 18-months: 2.75% APY
  • 24-months: 2.75% APY
  • 36-months: 2.85% APY
  • 48-months: 2.95% APY
  • 60-months: 3.10% APY

LEARN MORE Secured

on Synchrony Bank’s secure website

Member FDIC

  • 6 months – 5 years: Capital One – 0.60% APY – 3.00% APY; no minimum deposit

12 Month 360 CD from Capital OneCapital One is famous for its credit card business. However, it has recently started getting aggressive with its CD rates. There is no minimum deposit for their 360 CDs, which make them comparable to Barclays’ CDs. Capital One CDs are FDIC insured, up to the federal maximum. And you get the comfort of depositing your money with a well-known bank.

  • 6-months: 0.60% APY
  • 9-months: 0.75% APY
  • 12-months: 2.50% APY
  • 18-months: 2.50% APY
  • 24-months: 2.60% APY
  • 30-months: 2.60% APY
  • 36-months: 2.70% APY
  • 48-months: 2.75% APY
  • 60-months: 3.00% APY

LEARN MORE 

Member FDIC

  • 3 months – 5 years: Ally Bank – 0.75% APY – 3.00% APY; $0 minimum deposit (higher APY with higher deposit)

Ally Bank
Ally is one of the largest internet-only banks in the country. Ally’s former advertising campaign made it very clear: no branches = higher rates. And Ally has consistently paid some of the highest rates in the country across savings accounts, money market accounts and CDs. For savers with fewer funds, Ally is unique. There is no minimum deposit to open a CD. However, if you have more money, you can earn a higher APY. If you have more than $25,000 to deposit, you can earn between 0.75% APY and 3.00% APY. And one of our favorite features of Ally: they often (although not always) offer preferential rates on renewal. Far too often banks give the biggest bonuses to new customers, but Ally has done a good job of rewarding its existing customers. A good example of this is a 1% cash back promotion Ally is currently offering to new and existing customers. All deposits at Ally are FDIC insured up to the legal limit.

  • 3-months: 0.75% APY (less than $5k); 0.75% APY ($5k minimum deposit) and 0.75% APY ($25k minimum deposit)
  • 6-months: 1.00% APY (less than $5k); 1.00% APY ($5k minimum deposit) and 1.00% APY ($25k minimum deposit)
  • 9-months: 1.25% APY (less than $5k); 1.25% APY ($5k minimum deposit) and 1.25% APY ($25k minimum deposit)
  • 12-months: 2.50% APY (less than $5k); 2.50% APY ($5k minimum deposit) and 2.50% APY ($25k minimum deposit)
  • 18-months: 2.35% APY (less than $5k); 2.45% APY ($5k minimum deposit) and 2.55% APY ($25k minimum deposit)
  • 3-year: 2.50% APY (less than $5k); 2.55% APY ($5k minimum deposit) and 2.60% APY ($25k minimum deposit)
  • 5-year: 3.00% APY (less than $5k); 3.00% APY ($5k minimum deposit) and 3.00% APY ($25k minimum deposit)

LEARN MORE Secured

on Ally Bank’s secure website

Member FDIC

  • 12-Month CD: Vio Bank – 2.65% APY, $1,000 minimum deposit

12 Month High Yield Online CD from Vio BankVio Bank is a bank subsidiary of MidFirst Bank. While Vio Bank is practically brand new, it’s backed by a financial institution that’s been around since 1911 and has acquired over $15 billion in assets. Vio Bank is currently offering one of the highest CD rates available. With a $500 minimum deposit amount, you can earn a 2.65% APY on a 12-month CD.

LEARN MORE Secured

on Vio Bank’s secure website

Member FDIC

  • 1-Year CD from a Credit Union: PenFed Credit Union – 2.60% APY, $1,000 minimum deposit

12 Month Money Market Certificate from PenFed Credit UnionPenFed is a credit union that offers very competitive interest rates. You need to join the credit union in order to benefit from their products. If you have a military or government affiliation, it is free to join. Otherwise, you would need to join an organization like Voices for America’s Troops, which costs $17.00. Once you are a member, you can open PenFed products (including this certificate) online. Your deposit would be insured by the NCUA, which is the National Credit Union Administration. There is a $1,000 minimum deposit for the one-year certificate.

LEARN MORE Secured

on PenFed Credit Union’s secure website

NCUA Insured

  • 2-Year CD: CD Bank – 3.00% APY, $10,000 minimum deposit

24 Month CD from CD BankCD Bank is the online division of TBK Bank, which is located in Dallas, Texas. With the help of TBK Bank’s backing, the two institutions have over $3 billion in assets. Currently, CD Bank is offering a 24-month CD with a 3.00% APY. There is a steep minimum deposit amount of $10,000, but your deposit is FDIC-insured.

LEARN MORE Secured

on CD Bank’s secure website

Member FDIC

  • 2-Year CD from a Credit Union: Communitywide Federal Credit Union – 2.90% APY, $2,000 minimum deposit

24 Month Share Certificate from Communitywide Federal Credit UnionCommunityWide Federal Credit Union was established in 1967 to provide quality financial services to those residing on the west side of South Bend, IN. Today, the credit union operates similarly even though they’ve expanded their footprint in Michigan. Thanks to their online services, however, their able to service customers nationwide. Anyone can become a member of this credit union if they are a donor member of one of their partner organizations, such as the Y.M.C.A. Once you become a member, you can apply for their 24 month CD. You’ll need to deposit $2,000 in order to earn their outstanding 2.90% APY. This account can be managed online or through their mobile app. Deposits made to Communitywide Federal Credit Union are insured by the NCUA.

LEARN MORE Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

  • 3-Year CD: KS StateBank – 3.22% APY, $500 minimum deposit

3 Year CD from KS StateBankKS StateBank is mainly a brick-and-mortar institution located in Kansas and Phoenix, Arizona. However, they also offer online services to reach those not in their area. Sometimes, they even offer special rates to their online customers. While this 3-year CD is not an online special, it is a term that can be opened online rather than at a branch. With a minimum deposit amount of $500, you can begin earning an APY of 3.22%. KS StateBank not only offers online banking, they also have a mobile banking app. Deposits made to this bank are FDIC-insured.

LEARN MORE Secured

on KS StateBank’s secure website

Member FDIC

  • 3-Year CD from a Credit Union: Greenwood Credit Union, 3.25% APY, $1,000 minimum deposit

Greenwood Credit Union
Greenwood Credit Union is open to anyone and everyone. The only requirement to become a member with this credit union is to open their Share Savings Account with a minimum deposit amount of $5. You’ll also have to maintain that amount in the account to remain an active member. When you go to apply for membership, you can also add that you want to open their 30 month CD. You’ll need to deposit $1,000 in order to earn their outstanding 3.25% APY. This deposit will be in addition to the $5 to open the Share Savings Account. Accounts can be managed online or through their mobile app. Deposits made to Greenwood Credit Union are insured by the NCUA.

LEARN MORE Secured

on Greenwood Credit Union’s secure website

NCUA Insured

  • 5-Year CD: KS StateBank – 3.49% APY, $500 minimum deposit

5 Year CD from KS StateBankOnce again KS StateBank lands a top spot on our list. Its 5-year CD has an APY of 3.49%, which is one of the highest currently available. You’ll only need $500 to deposit to open the account.

LEARN MORE Secured

on KS StateBank’s secure website

Member FDIC

  • 5-Year CD from a Credit Union: United States Senate Federal Credit Union – 3.51% APY, $1,000 minimum deposit

United States Senate Federal Credit Union

Despite what the name may suggest, you do not have to be a Senate employee to join the United States Senate Federal Credit Union. If you don’t meet the work or family qualifications, you can easily become a member by joining the American Consumer Council, Virginia Chapter (VACC) or by joining the U.S. Capitol Historical Society (USCHS). This credit union was established by nine employees of the United States Senate during the Great Depression. Since then, the credit union has grown to have over $717 million in assets.

Currently, the United States Senate Federal Credit Union is offering amazing rates on its 5-year CD. With a minimum deposit of $1,000, you can earn an APY of 3.51%. If you deposit more, the APY increases. The other tiers are as follows:

  • $20,000-$59,999.99: 3.57% APY
  • $60,000-$99,999.99: 3.63% APY

 

LEARN MORE Secured

on United States Senate Federal Credit Union’s secure website

NCUA Insured

3 Questions To Ask Before You Open A CD

1. Should I just open an online savings account instead?

With a CD, the saver and the bank make stronger commitments. The saver promises to keep the funds in the account for a specified period of time. In exchange, the bank guarantees the interest rate during the term of the CD. The longer the term, the higher the interest rate – and the higher the penalty for closing the CD early. With a savings account, there are few promises. You can empty the account without paying a penalty and the bank can change the interest rate at any time.

If you have a high level of confidence that you do not need to touch the money for a specified period of time, a CD is a much better deal. However, if you think you might need to use the money in the next couple of months, a savings account is a much better idea.

You can earn a lot more interest with a CD. Imagine you have $10,000 and know that you do not need to touch the money for two years. In a high-yield savings account earning 1.60%, you would earn $322.56 over two years. If you put that money into a 2.50% CD, you would earn $508.30. Given the ease of switching to an online CD, the extra interest income is easy money.

2. What term should I select?

The early withdrawal penalties on CDs can be significant. On a 1-year CD, 90 days is a typical penalty. And on 2 and 3 year CDs, a 6-month penalty is common. The impact of the penalty on your return can be significant. If you opened a one-year CD with a 2.20% APY and closed it after six months, you would forfeit half of the interest and earned only 1.11%. You would have been better off with a savings account paying 1.95%.

The worst case scenario is with the longest CDs. 5-year CDs usually have a one-year penalty for taking out funds early. If you open a 5-year CD and close it quickly, you could actually end up losing money.

Given the early penalties, you need complete confidence that you will not need to withdrawal the money early. Ask yourself this question: “do I have 90% confidence that I will not need access to the cash during the CD term?” If you don’t have confidence, go for a shorter term or a savings account.

3. Should I consider my local bank or credit union?

The interest rates shown in this article are all from online banks that offer products nationally. Our product database includes traditional banks, community banks and credit unions. If traditional banks offered better rates, they would have been featured in this article. The internet-only banks have dramatically better interest rates. That should not be surprising. Because internet-only banks do not have branches, they are able to pass along their cost savings to you in the form of higher interest rates.

However, you can always visit your local bank or credit union and ask them to beat the rates listed in this article. The chance of getting a better deal is extremely low (remember that Bank of America is only paying 0.07%), but you can try.

How To Find The Best Account

If you don’t find an account that meets your needs in this article, you can use the MagnifyMoney CD tool to find the best rate for your individual needs. Input your zip code, deposit amount and term. The tool will then provide you with CD options, from the highest APY to the lowest.

You can learn more about us and how we make money here.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Nick Clements
Nick Clements |

Nick Clements is a writer at MagnifyMoney. You can email Nick at nick@magnifymoney.com

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Reviews

Eastman Credit Union Review: Checking, Savings, CD, Money Market and IRA Accounts

Friday, October 19, 2018

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Brynne ConroyBrynne Conroy
Year Established1934
Total Assets$4.3B
LEARN MORE on Eastman Credit Union’s secure websiteNCUA Insured

Eastman Credit Union calls northeast Tennessee home, but now has branches and membership eligibility in portions of western Virginia and eastern Texas as well. To join Eastman Credit Union, you must live, work, worship or study in one of those areas.

If you still do not meet any of these requirements, you may qualify for membership based on your employer, or if you have a family member who already banks with Eastman Credit Union.

Eastman Credit Union’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.30%

Savings

Eastman Credit Union Share Savings Account

2.15%

CIT Bank Savings Builder

LEARN MORE Secured

on CIT Bank’s secure website

Member FDIC

2.00%

CD Rates

Eastman Credit Union 1 to 2 Year Investment Certificate

2.55%

Goldman Sachs Bank USA High-yield 12 Month CD

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

2.40%

CD Rates

Eastman Credit Union 3 to 4 Year Investment Certificate

2.85%

Synchrony Bank 36 Month CD

LEARN MORE Secured

on Synchrony Bank’s secure website

Member FDIC

2.60%

CD Rates

Eastman Credit Union 5 Year Investment Certificate

3.10%

Barclays 60 Month Online CD

LEARN MORE Secured

on Barclays’s secure website

Member FDIC

In this review we’ll cover:

Eastman Credit Union’s checking account options

Eastman Credit Union’s savings account options

Eastman Credit Union’s CD rates

Eastman Credit Union’s money market account options

Eastman Credit Union’s IRA account options

Overall review of Eastman Credit Union’s banking products

Eastman Credit Union’s checking account options

ECU Beyond Free Checking

A tiered checking account with very few fees.
APYMinimum Balance to Earn APY
0.05%
$0
0.10%
$10,000
0.15%
$25,000
0.20%
$50,000
0.25%
$100,000
0.30%
$200,000
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $5 or $30

The ECU Beyond Free Checking is not a bad account. It has no minimum balance requirements, no minimum opening deposit and won’t sock you with ATM fees when you use an out-of-network ATM unless they’re charged by the ATM owner.

The APY on this Eastman Credit Union account isn’t the best, but sometimes it can be exciting that a checking account offers dividends at all. Typically, you hold money in a checking account only to spend it throughout the month, so while you can find special deals and great rates outside of Eastman Credit Union, you will also find some financial institutions offering 0.00% APY on their checking accounts. The credit union’s rates are fairly standard though not the highest on the market.

Overdraft fees on all accounts at Eastman Credit Union are either $5 or $30. If you sign up for overdraft protection, you will be charged $5 every time the credit union has to pull funds from your savings account to cover your purchase. If you sign up for overdraft protection plus, you will be charged $30 every time you overdraw, but the credit union will allow you to make purchases until your account is -$500. Not that the $30 fee will reduce the amount available ($500) to pay other items. If you don’t sign up for any of these protections, you will be charged $30 every time you overdraw, and on top of it, Eastman will not allow the purchase to go through.

How to get Eastman Credit Union’s Beyond Free Checking

You can apply for Beyond Free Checking online or by visiting your local branch.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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How Eastman Credit Union’s checking account compares

The ECU Beyond Free Checking does not offer the best rates on the market, but they’re not the worst either. Aided by no minimum balance requirements and limited fees, this account is worthy of your consideration as you compare other checking accounts.

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Eastman Credit Union’s savings account options

Regular Savings

This account is required to establish your membership at Eastman Credit Union.
APYMinimum Balance to Earn APY
0.30%
$5
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $5
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $5 or $30

Eastman Credit Union’s Regular Savings account doesn’t offer even close to the highest APY on the market, but that’s not the real reason to open one of these accounts. In order to establish membership at the credit union, you must have a savings account to access any of their other accounts, making things like lackluster APY and relatively low fees a moot point.

Because it is a savings account, certain terms are dictated by federal regulation. Specifically, Fed Regulation D says that you can make up to six certain withdrawals/transfers from a savings account per month. If you do go over, Eastman Credit Union will charge you an $8 excessive withdrawal fee for any transaction over six in any given month. You also risk having your account shut down, which could result in a loss of membership with this particular account.

How to get Eastman Credit Union’s Regular Savings Account

You can open this account online or in person.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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Christmas Club Account

An account that empowers you to save for the holidays but recognizes you might need cash for early shopping.
APYMinimum Balance to Earn APY
0.30%
$5
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $5
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Early withdrawal fee: $10, if you withdraw before September
  • Overdraft fee: $5 or $30

Saving for the holidays? It’s really easy to dip into that savings pot when something like a big back-to-school sale or an opportunity to take a long weekend trip pops up. The Christmas Club Account is built specifically with this situation in mind.

You can stash money in your Christmas Club Account all year, and then during the first week of November, everything you’ve saved will be disbursed to your regular savings account. To encourage you to keep money in your account throughout the year, you will be charged a $10 fee when you withdraw. The only exceptions are withdrawals made in September and October, for which there are no fees.

How to get Eastman Credit Union’s Christmas Club Account

You can open a Christmas Club Account online or at your local branch.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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Stash Your Cash Account

A club account that allows you to save for more than just the holidays.
APYMinimum Balance to Earn APY
0.30%
$5
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $5
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $5 or $30

The Stash Your Cash Account is similar to the Christmas Club Account, except that you can use the money you’re saving for any purpose, whether that be vacation or a wedding. You can also set the date that your funds will be released to your Regular Savings, making the account flexible to match your individual financial goals.

Remember that both this account and the Christmas Club Account are still savings accounts, so if you do have to make early withdrawals/transfers, make sure you’re planning ahead to avoid making more than six per month.

How to get Eastman Credit Union’s Stash Your Cash Account

You can open this account by visiting your local branch. If there is no branch local to you, call (800) 999-2328.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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Health Savings Account

A tax-sheltered account for your health care costs.
APYMinimum Balance to Earn APY
0.30%
$5
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $5
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $5 or $30

If you have a High-Deductible Health Plan (HDHP), you can put up to $3,450 into a Health Savings Account (HSA) in 2018 — $6,900 if your HDHP offers family coverage.

These contributions are tax-deductible, and earnings are tax-free when you take the money out for qualified health expenses. You can also enjoy tax-free withdrawals if you are disabled or at least the age of 65.

The fact that the credit union offers this type of account is fairly unique. If you have an HDHP and no other insurance, it’s a good way to shelter the dollars you spend on health care costs from the IRS, and since the money is carried over from year to year, it can also serve as an extremely tax-effective retirement account if you don’t end up needing the money for health-related expenses. Granted, if you open it with Eastman Credit Union, the dividends won’t be enough to keep your money from losing value to inflation.

How to get Eastman Credit Union’s Health Savings Account

To get the process of opening an HSA started, call (800) 999-2328.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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How Eastman Credit Union’s savings accounts compare

Eastman Credit Union offers a pittance of an APY when compared with the best savings accounts on the market, yet each account it does offer serves a very unique purpose that may put it beyond dividend comparisons.

The Regular Savings account is required to open any type of account at Eastman Credit Union, whether or not you’re a fan of the APY. Christmas Club and special savings accounts exist to enforce self-discipline rather than to rake in extra money through dividends, and HSAs are a way to become more tax efficient with your health care spending.

Rather than comparing these accounts with those with the highest savings rates, you’ll be better off digging in deep and comparing them with accounts at other financial institutions that help you achieve the same goals.

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Eastman Credit Union’s CD rates

Investment Certificates

Fairly competitive certificates with an opportunity to increase your APY.
TermAPYMinimum Opening Deposit
1-3 Months0.30%
$2,500
3-6 Months0.50%
$2,500
6-12 Months0.65%
$2,500
9 Months2.25%
$2,500
12-24 Months2.00%
$1,000
18-19 Months2.75%
$1,000
24-36 Months2.30%
$1,000
36-48 Months2.40%
$1,000
48-60 Months2.50%
$1,000
60 Months2.60%
$1,000
72 Months3.00%
$1,000
  • Minimum opening deposit: Varies based on desired term and APY
  • Minimum balance amount to earn APY: Same as minimum opening deposit
  • Early withdrawal penalty:
    • The greater of 7 days’ worth of dividends or all dividends earned to date on certificates with terms of up to 6 months;
    • 90 days’ worth of dividends on certificates with terms between 6 and 23 months;
    • 180 days’ worth of dividends on certificates with terms between 24 and 60 months;
    • 1 years’ worth of dividends on certificates with terms of 72 months.

The dividend rates on Eastman Credit Union’s Investment Certificates — which are the equivalent of certificates of deposit or CDs — are fairly competitive. It should be noted that this is especially true as you extend the term; the 72 month certificates are far more competitive than the 12 month CDs.  Further, you can add 0.05% APY to your certificate to make it a jumbo certificate with all the same terms save a minimum balance requirement of $100,000.

Also know that if you make a withdrawal that brings you below your minimum opening deposit, you’ll not only incur an early withdrawal penalty, but you’ll also see your certificate shut down. You cannot keep this account open without earning APY, and you can’t continue to earn APY without keeping your minimum opening deposit intact. The only exception to this is jumbo certificates. If you fall below the $100,000 minimum balance threshold, your certificate will just revert to normal rates.

How to get Eastman Credit Union’s CDs

You can open your investment certificate online or in person.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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Lifeline Savers Certificate

A low-yield certificate with an extremely low barrier to entry.
TermAPY
1 Year0.55%
  • Minimum opening deposit: $100
  • Minimum balance amount to earn APY: $100
  • Early withdrawal penalty: 90 days’ worth of dividends

In addition to the Investment Certificate, Eastman Credit Union also offers the Lifeline Savers Certificate. One unique feature compared with Eastman’s other certificate products is that you can add to the balance of this certificate at any time — even midterm. Your rate will be lower than with an Investment Certificate, but the barrier to entry is also far lower with only a $100 required deposit and balance.

That doesn’t mean that this account is competitive overall, though. At this term tier, you can find certificates from other financial institutions offering rates nearly five times higher requiring only about $400 more for a minimum opening deposit.

How to get Eastman Credit Union’s Lifeline Savers Certificate

You can open this account in person or via the online application.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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How Eastman Credit Union’s CD rates compare

At lower rate tiers, Eastman’s certificates are barely competitive. However, as you move up through the ranks of longer term periods, its certificates rival some of the best rates out there. Those should be considered as a viable option as you compare other CDs.

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Eastman Credit Union’s money market account options

Money Market

A somewhat standard money market account with high minimum balance requirements for unsatisfying dividends.
APYMinimum Balance to Earn APY
0.25%
$0
0.30%
$10,000
0.35%
$25,000
0.40%
$50,000
0.45%
$100,000
0.55%
$200,000
  • Minimum opening deposit: $1
  • Minimum balance to earn APY: $0; $10,000; $25,000; $50,000; $100,000; or $200,000 depending on desired rate
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $5-$30

The idea behind a credit union money market account is to pull more in from dividends than you would on your typical savings account. Traditionally, this has meant that there are larger minimum balance requirements in order to earn the higher APY.

Eastman Credit Union’s money market account does raise dividend rates as its tiered minimum balance requirements increase, but those rates are extremely low. If you have under $10,000 in your account, you’d be earning less APY than if you kept your money in a savings account at the credit union. But even at higher minimum balance requirements, the APY offered by Eastman Credit Union falls far short when compared with other options on the market.

Money market accounts are regulated by the federal government in the fashion of savings accounts, so remember that if you make more than six certain withdrawals/transfers from this account, you could be facing an $8 excessive withdrawal fee from the credit union per each instance. Beyond that, your account could even be shut down all together.

How to get Eastman Credit Union’s Insured Money Market account

You can open an Insured Money Market Account in person or via the online application.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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How Eastman Credit Union’s money market accounts compare

As mentioned above, traditionally money market accounts have required higher minimum balances in order to earn a higher APY. However, with the advent of online-only banks, we have seen a shift in this practice. Now, many internet banks offer a high APY on money market accounts with low or even no minimum balance requirements, rendering accounts like the one offered by Eastman Credit Union fairly obsolete.

To earn a dramatically higher APY with lower minimum balance requirements, be sure to check out the best money market accounts on the web.

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Eastman Credit Union’s IRA account options

IRA CD rates

IRA Investment Certificate

Same rates as a certificate outside of an IRA make this account uncompetitive.
TermAPYMinimum Opening Deposit
1-3 Months0.30%
$2,500
3-6 Months0.50%
$2,500
6-12 Months0.65%
$2,500
9 Months2.25%
$2,500
12-24 Months2.00%
$1,000
18-19 Months2.75%
$1,000
24-36 Months2.30%
$1,000
36-48 Months2.40%
$1,000
48-60 Months2.50%
$1,000
60 Months2.60%
$1,000
72 Months3.00%
$1,000
  • Minimum opening deposit: $1,000 or $2,500 depending on term
  • Minimum balance amount to earn APY: Same as minimum opening deposit
  • Early withdrawal penalty:
    • All dividends on 1-month certificates;
    • 7 days’ worth of dividends on 3-month certificates;
    • 90 days’ worth of dividends on certificates with terms between 6 and 23 months;
    • 180 days’ worth of dividends on certificates with terms between 24 and 60 months;
    • 1 years’ worth of dividends on certificates with terms of 72 months.

Many financial institutions increase the interest rates offered on certificates when they are held within an IRA, though Eastman Credit Union keeps them static. If you have over $100,000 in an Investment Certificate, it turns into a jumbo certificate and you’ll see a rate hike of 0.05%, but it’s still not enough to compensate for the higher rates offered for lower minimum balances elsewhere.

While the early withdrawal penalties charged by Eastman Credit Union are listed above, remember that any time you take money out of an IRA, you could also owe penalties to the IRS, as well.

How to get Eastman Credit Union’s IRA CDs

You cannot open IRA products with Eastman Credit Union online. Instead, you’ll have to open this account by visiting your local branch. If there is no branch local to you, call (800) 999-2328.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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Accumulation Account

A competitive savings account within your IRA meant to be used before you retire.
APYMinimum Balance to Earn APY
0.30%
$5.00
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $5
  • Monthly account maintenance fee: None
  • Overdraft fee: N/A

The Accumulation Account is a savings account inside your IRA and is meant to be used before your reach retirement age. Eastman Credit Union’s offered rates are not competitive for a portfolio holding of this class. You can find rates more than six times higher elsewhere.

Because you have to come in to fill out paperwork and make withdrawals, you will not be able to accidentally overdraw this account. You should also be aware that with few exceptions, should you make withdrawals from an IRA prior to reaching retirement age, you will have to pay penalties and fees.

How to get Eastman Credit Union’s Accumulation Account

Because Eastman’s IRA products are not available online, you will have to either call (800) 999-2328 to set up your account, or visit your local branch.

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Access Account

A savings account within your IRA meant to be used in retirement.
APYMinimum Balance to Earn APY
0.25%
$10,000
  • Minimum opening deposit: $10,000
  • Minimum balance to earn APY: $10,000
  • Monthly account maintenance fee: None
  • Overdraft fee: N/A

The Access Account is very similar to the Accumulation Account in its intent. It is a savings account within an IRA, though it is meant to be used as you approach retirement. When you reach retirement age, you will be able to take money out of this account — hence the name “access.”

There are higher minimum opening and balance requirements with this account, but that is because you are closer to retirement and will likely want to keep more of your retirement savings in more conservative accounts. The APY is also a little lower than the Accumulation Account, which obviously means this account does not offer a competitive APY either.

How to get Eastman Credit Union’s Access Account

To open any type of product within an IRA, you’ll have to either visit a branch or call (800) 999-2328.

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How Eastman Credit Union’s IRA CD rates compare

You can do better with your IRA certificate than accepting the low rates offered by Eastman Credit Union. Look for financial institutions that up their APY when offering certificates inside an IRA rather than keeping them static. Even if you have more than $100,000 to open a jumbo certificate and get the rate hike, the APY offered by the competitors still dwarfs the credit union’s offerings.

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Overall review of Eastman Credit Union’s banking products

At the end of the day, with the potential exception of certain certificate tiers outside of an IRA, Eastman Credit Union’s products simply aren’t competitive with the best options on the market. To be sure, its savings accounts do offer a wide range of services that may help you reach your financial goals outside of APY earnings. For all other products, it’s more likely in your favor to look elsewhere.

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Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brynne Conroy
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Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here

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Reviews

Charles Schwab Bank Review: Checking and Savings Accounts

Friday, October 19, 2018

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

John CsiszarJohn Csiszar
Year Established2003
Total Assets$207.9B
LEARN MORE on Charles Schwab Bank’s secure websiteMember FDIC

The Charles Schwab Corporation rose to prominence as a “discount broker,” offering stock trading at commissions far below those charges by traditional, “full-service” brokers.

Charles Schwab Bank was launched in 2003 and introduced its two flagship accounts, the High Yield Investor Checking and High Yield Investor Savings accounts, in 2007 and 2009, respectively. These accounts are primarily designed to serve the banking needs of the firm’s brokerage customers. In fact, customers cannot even open a Charles Schwab Bank checking account without attaching it to a brokerage account.

Here’s a look at Charles Schwab Bank’s two accounts, including an examination of their features, benefits, fees and rates.

Charles Schwab Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.45%

Savings

Charles Schwab Bank High Yield Investor Savings

2.15%

CIT Bank Savings Builder

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Charles Schwab Bank’s checking account

Schwab Bank High Yield Investor Checking

This account pays interest and offers a host of benefits for customers.
APYMinimum Balance to Earn APY
0.35%
$0.01
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: $0
  • ATM fee refund: Unlimited anywhere in the world
  • Overdraft fee: $25 non-sufficient funds fee if insufficient funds are in the account and no action is taken. Overdrafts are not allowed, so NSF items are not paid; however, customers are notified and are allowed to make additional deposits or use a linked account, such as a SchwabOne brokerage account or a checking/savings account, to make a no-fee overdraft protection transfer.

To get a Schwab Bank High Yield Investor Checking account, customers must first open a Schwab One brokerage account and then link it to the checking account. However, there are no requirements to fund the Schwab One brokerage account, so it’s not a significant hurdle.

The Schwab Bank High Yield Investor Checking account pays a flat rate on deposits of all sizes, with no tiers but no minimums, either. Charles Schwab Bank charges zero ATM fees on any withdrawals anywhere in the world, and will pay unlimited ATM rebates on a global basis as well.

Other features of the Schwab Bank High-Yield Investor Checking account include the following:

  • Schwab Mobile Deposit, which allows remote, app-based deposits from anywhere
  • Free bill pay on Schwab Mobile and Schwab.com
  • Free standard checks
  • Free Schwab Bank Visa Platinum debit card
  • FDIC insurance (up to $250,000)
  • Ability to link Apple Pay, Samsung Pay, Google Pay and Microsoft Wallet

The checking account does not allow overdrafts, and charges a fee when drafts are presented that would overdraw the account; however, Charles Schwab Bank sends out emails to customers indicating they may be overdrawn, allowing them a chance to deposit or transfer funds to cover the deficit. Customers can also use their Schwab One brokerage or savings accounts to cover any overdrafts.

How to get Charles Schwab Bank’s checking account

The easiest way to get the Schwab Bank High-Yield Investor Checking account is to apply online. You can also call (800)-540-6718 or download an application from the website and mail it back in. You are required to open a Schwab One brokerage account to gain access to a checking account. To complete the online application, you’ll need your Social Security number and your employer’s name and address, if applicable.

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How Charles Schwab Bank’s checking account compares

Although Charles Schwab Bank only offers one checking account, it packs in a lot of features that may appeal to customers in that single wrapper. The account carries no fees or minimum balance requirements. It pays a higher-than-average rate on a national basis and on balances of all sizes; however, the rate does fall short of the best available checking account rates. The standout feature of the Schwab Bank High Yield Checking account is the ATM fee structure. Charles Schwab Bank doesn’t charge any ATM fees, which is common among many high-quality banks, but it also offers unlimited ATM fee reimbursements, even overseas, which is an unusual benefit. This can make the checking account an attractive option for international travelers.

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Charles Schwab Bank’s savings account

Schwab Bank High Yield Investor Savings

This account pays a flat interest rate on all balances and offers a great ATM fee schedule.
APYMinimum Balance to Earn APY
0.45%
$0.01
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: $0
  • ATM fee refund: unlimited ATM fees worldwide
  • Overdraft fee: $25 non-sufficient funds fee if insufficient funds are in the account and no action is taken. Overdrafts are not allowed, so NSF items are not paid; however, customers are notified and are allowed to make additional deposits or use a linked account, such as a SchwabOne brokerage account or a checking/savings account, to make a no-fee overdraft protection transfer.

The Schwab High Yield Savings Account pays the same APY regardless of account balance, with no minimums. The account has the same attractive ATM fee structure as the checking account, meaning Charles Schwab Bank will never charge you an ATM fee. Even better, the bank will rebate any ATM charges you incur from third-party operators anywhere in the world. As with the checking account, the savings account gives you access to Schwab Mobile Deposit, allowing you to use the bank’s app to make a deposit from anywhere. You can also sign up for direct deposit into this account.

The savings account does not allow overdrafts, just like the checking account. Charles Schwab Bank notifies customers in the event they may be overdrawn, allowing them a chance to cover the deficit with additional funds. Customers can also use their Schwab One brokerage or checking accounts to cover any overdrafts.

Additionally, since this is a savings account covered by Federal Reserve Regulation D, you can make no more than six certain withdrawals per the monthly statement cycle from your account to any other account you have at Charles Schwab Bank, Schwab brokerage or another financial institution, or to a third party. The limits don’t apply to cash withdrawals from your account at an ATM.

How to get Charles Schwab Bank’s savings account

Unlike with the Schwab Bank High Yield Checking account, customers cannot open a Schwab Bank High Yield Savings account online. You must download an application and mail it back in or call (800)-540-6718 to open a savings account.

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How Charles Schwab Bank’s savings account compares

Charles Schwab Bank’s savings account ranks high compared to other accounts simply because of its ATM rebate policy, which is unlimited worldwide. The account also pays an APY that is well above the national average savings account rate; however, you can still get much higher rates from the banks with the highest savings account rates in the country. Still, Charles Schwab Bank’s savings account has no account minimums or fees, which keeps it competitive.

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Overall review of Charles Schwab Bank’s banking products

Charles Schwab Bank has a very limited product line, but its features are outstanding. Both the checking and savings account offered at the bank charge no ATM fees, and even more impressively, they rebate any ATM fees incurred anywhere in the world. This can make the Charles Schwab Bank accounts ideal for those who travel overseas frequently. Both accounts have no fees and no account minimums, and they also pay above-average interest rates.

You can find higher interest rates at the highest paying institutions in the country, but it might be hard to find a bank with the strong online and mobile capabilities of Charles Schwab Bank, which also pays interest, has no fees, offers unlimited ATM rebates and links to a brokerage account free of charge.

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Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

John Csiszar
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John Csiszar is a writer at MagnifyMoney. You can email John here

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Reviews

United Texas Bank Review: Checking, Savings, CD, Money Market and IRA Accounts

Friday, October 19, 2018

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

David RodeckDavid Rodeck
Year Established1986
Total Assets$0.5B
LEARN MORE on United Texas Bank’s secure websiteMember FDIC

United Texas Bank launched in 1986 as a boutique commercial bank in Dallas. Today, the company has only two locations, both in Dallas, Texas. Because of their size, United Texas Bank states that they offer more customized banking services for their customers, versus the larger players with hundreds of locations.

Even though United Texas Bank only has the two Dallas branches, they accept customers nationwide and you can apply for any of their personal deposit accounts through their website. For a small bank, they have made a decent commitment to online banking.

But a quality bank needs more than a decent website. The real question is just what kind of terms do they offer their customers? We’ve reviewed all their personal deposit accounts so you can decide whether United Texas Bank is the right place for your money. We used the latest product information and rates available on their website, which applies to all their accounts. Rates stay the same, regardless of location.

United Texas Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.25%

Savings

United Texas Bank Savings Account

2.15%

CIT Bank Savings Builder

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2.60%

CD Rates

United Texas Bank 12 Month CD

2.55%

Goldman Sachs Bank USA High-yield 12 Month CD

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2.80%

CD Rates

United Texas Bank 36 Month CD

2.85%

Synchrony Bank 36 Month CD

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1.75%

CD Rates

United Texas Bank 48 Month CD

3.10%

Barclays 60 Month Online CD

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In this article, we’ll cover:

United Texas Bank checking account options

United Texas Bank savings account options

United Texas Bank CD rates

United Texas Bank money market account options

United Texas Bank IRA account options

Overall review of United Texas Bank’s banking products

United Texas Bank checking account options

United Texas Bank Classic Checking account

This checking account comes with the basics and refunds up to $100 per month in out-of-network ATM fees. The bad news? It doesn’t earn interest.
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $10 (can be waived)
  • ATM fees: None
  • ATM fee refunds: Up to $100 per month
  • Overdraft fees: $30 each

The Classic Checking account just offers the basics. It comes with online banking, a debit card and the ability to write checks. That’s pretty much it as this account does not earn interest or offer cash back when you use the debit card.

You only need to deposit $100 to open this account. However, anytime your minimum daily balance falls below $750, you owe a $10 monthly fee. The account is free so long as your balance stays at least $750.

If you make withdrawals from out-of-network ATMs, United Texas Bank will refund up to $100 per month in fees charged by the ATM owners.

You can open the Classic Checking account online or at one of their Dallas branches. The application asks for your name, address, work history, Social Security Number and a form of government ID, like your passport or driver’s license. You will also need to make your opening deposit to complete the application.

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United Texas Bank NOW Personal Checking account

This checking account earns interest but the rate isn’t the best. Watch out for the steep monthly fee when your balance falls below $1,000.
APYMinimum Balance Amount to Earn APY
0.05%$0.01
0.10%$1,000
0.15%$5,000
0.20%$10,000
0.25%$15,000
  • Minimum opening deposit: $500
  • Monthly account maintenance fee: $15 (can be waived)
  • ATM fees: None
  • ATM fee refunds: Up to $100 per month
  • Overdraft fees: $30 each

The NOW Personal Checking account requires slightly larger balances than Classic Checking. You need to deposit at least $500 to open this account. If your minimum daily balance falls below $1,000, you will owe a $15 monthly fee. The account’s free so long as you stay above the balance requirement.

In exchange, this account does pay interest and the rate increases for larger balances. The rates are just OK, better than the large national banks but lower than many online lenders.

If you make withdrawals from an out-of-network ATMs, United Texas Bank will refund up to $100 per month in fees charged by the ATM owners.

You can open the NOW Personal Checking account online or at one of their Dallas branches. The application asks for your name, address, work history, Social Security Number and a form of government ID, either your passport or driver’s license. You will also need to make your opening deposit to complete the application.

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How United Texas Bank’s checking accounts compare

You could do worse than signing up for the United Texas Bank checking accounts but you could also do a lot better. Our favorite feature was that both their accounts offer up to $100 in ATM fee refunds per month so you can get free access to your money even if you aren’t close to one of the Dallas bank branches.

The downside is that the United Texas Bank checking accounts both have high balance requirements or else they charge a costly monthly fee. Even their basic checking account requires a minimum daily balance of $750, which is way too high for an account that doesn’t earn interest.

If we had to recommend one, we’d go with NOW Personal Checking because it earns interest while having nearly the same balance requirements as Classic. Still, there are other online checking accounts which combine convenient ATM access with much higher interest rates. They are a better choice than what’s available at United Texas Bank.

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United Texas Bank savings account options

United Texas Bank Personal Savings account

The United Texas Bank Savings account has average interest rate and there’s no minimum balance to start earning interest. But if you don’t keep at least $500 in your account, there’s a monthly fee.
APYMinimum Balance Amount
0.25%$0.01
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $3 (can be waived)
  • ATM fees: None
  • ATM fee refunds: None
  • Overdraft fees: $30 each

The Personal Savings account does not have a minimum opening deposit requirement. You can open an account for any amount. However, if your minimum daily balance ever falls below $500, you’ll owe a $3 monthly fee. This account is free so long as you stay at least at the $500 daily balance minimum.

This account earns interest on all balances. The rate is average for a savings account. It also stays the same for all balances so you can’t earn more by depositing more.

United Texas Bank limits how often you can take money out of the Personal Savings account because of a government rule, Regulation D. Each month, you can make up to six certain withdrawals/transfers per month. This includes account transfers, bill payments, checks and debit card purchases. If you go over the monthly limit, United Texas Bank will charge a $25 fee for each excess transaction. However, there is no limit on ATM or bank withdrawals so you can make as many of these as you want without owing a fee.

You can open the NOW Personal Savings account online or at one of their Dallas branches. The application asks for your name, address, work history, Social Security Number and a form of government ID, either your passport or driver’s license. You can also choose to make your initial deposit, though this is not required to open the Personal Savings account.

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How United Texas Bank’s savings accounts compare

We would not go out of our way to open the United Texas Bank savings account because the interest rate is simply not good enough. Though they beat the large national banks, they don’t beat them by much and there are online lenders that pay much more than United Texas Bank.

We also don’t like that the United Texas Bank savings account charges a fee if your balance ever falls below $500. True, it’s just $3 but there are plenty of free savings accounts to choose from. Finally, we noticed that their excess withdrawal fee is quite high. If you accidentally make more than six certain transactions, the $25 fee will wipe out a good chunk of your interest earnings.

Because of these issues, we believe you could find a better place for your savings. Any option on this list of best online savings accounts will earn a higher rate than what you will get at United Texas Bank.

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United Texas Bank CD rates

United Texas Bank CDs

United Texas Bank offers some of the best CD rates on the market. Be careful when you sign up because some of their short-term CDs pay more than long-term offers.
TermAPY
1 month0.30%
3 months0.41%
6 months1.90%
12 months2.60%
24 months1.95%
36 months2.80%
48 months1.75%
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty: For CDs with maturities of one year or less, the penalty is three months of interest on the amount withdrawn. For CDs over one year, the penalty is six months interest on the amount withdrawn.

At United Texas Bank, they offer CDs which range from one month all the way up to 48 months. All their CDs require a minimum opening deposit of at least $1,000 and you need to keep this much in the account to earn the APY.

The best deals at United Texas Bank are their 12 month and 36 month CDs. The rest of their CD rates are acceptable but not quite as high as these two offers.

If you take money out of a CD before the maturity date, United Texas Bank will charge an early withdrawal penalty. The penalty depends on the CD term:

  • For CDs with maturities of one year or less, the penalty is three months of interest on the amount withdrawn.
  • For CDs with maturities over one year, the penalty is six months interest on the amount withdrawn.

You can open the United Texas Bank CDs online or at one of their Dallas branches. The application asks for your name, address, work history, Social Security Number and a form of government ID, either your passport or driver’s license. You will also need to make your opening deposit to complete the application.

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How United Texas Bank’s CD rates compare

The United Texas Bank CD rates are fantastic. Their 12 month CD earns one of the best rates in the country for this amount of time. Their 36 month CD is also extremely competitive. The rest of the United Texas Bank CD rates are decent, but if you do your research you can find better options. Your best bet is to stick with either the 12 month or 36 month CD.

Typically, banks pay more as you increase the length of your CD but we noticed this isn’t always the case with the United Texas Bank’s CD rates. You earn more on the 12 month CD than you do even on the 48 month CD. Pay attention when you apply and don’t assume that just because a CD term is longer, it will pay more.

The longest CD at United Texas Bank is also 48 months so if you want to invest for a greater amount of time, you’ll need to go with another bank. In the end, if you sign up for either the 12 month or 36 month CD at United Texas Bank, you’ll be making a wise choice but if you want some other excellent options to compare, we’ve listed the very best CDs here.

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United Texas Bank money market account options

United Texas Bank Personal Lone Star Money Market account

Pays a respectable interest rate on all deposits and is free so long as your balance stays above $2,500. An account that lives up to the Lone Star state reputation.
APYMinimum Balance Amount
1.25%$0.01
1.70%$250,000
  • Minimum opening deposit: $2,500
  • Monthly account maintenance fee: $15 (can be waived)
  • ATM fees: None
  • ATM fee refunds: None
  • Overdraft fees: $30 each

You need to deposit at least $2,500 to open a United Bank Personal Lone Star Money Market account. After that, if your minimum daily balance ever falls below $2,500, the account charges a $15 fee. It’s free so long as you stay above the balance requirement.

This account earns interest on all deposits and the rate is quite good for a money market account. You get a sizable rate increase if your balance is $250,000 or higher.

United Texas Bank limits how often you can take money out of the Personal Lone Star Money Market account because of a government rule, Regulation D. Each month, you can make up to six certain withdrawals/transfers per month. This includes account transfers, bill payments, checks and debit card purchases. If you go over the monthly limit, you’ll a $25 fee for each excess transaction.

You can open the Lone Star Money Market account online or at one of their Dallas branches. The application asks for your name, address, work history, Social Security Number and a form of government ID, either your passport or driver’s license. You will need to make your initial deposit as part of the application.

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How United Texas Bank’s money market accounts compare

The United Texas Bank Money Market account is a great choice thanks to its solid interest rates. For deposits over $250,000, their rate is one of the highest in the entire country but even if you keep a smaller balance, you’ll still earn a decent return on your savings.

The $2,500 minimum balance requirement and $15 monthly maintenance fee are typical for a money market account. These accounts typically aren’t meant for small deposits. But if you want to open a money market account for less money, we may be able to help you out.

These are some of the other top money market accounts available today and some do not have have a minimum balance requirement, so you can earn a decent return without keeping thousands in your account. While the United Texas Bank Money Market account is good, you may be able to do even better with these other options.

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United Texas Bank IRA account options

United Texas Bank IRA CD rates

The United Texas Bank IRA CD rates are only average. It’s a shame their excellent regular CDs are not available for an IRA.
TermAPY
1 year0.81%
2 years1.15%
  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: For IRA CDs with maturities of one year or less, the penalty is three months of interest on the amount withdrawn. For IRA CDs over one year, the penalty is six months interest on the amount withdrawn.

The IRA CDs require a minimum opening deposit of $500 and you need to keep at least this much in your account to earn the APY. They only offer two options for IRA CDs: one year and two years.

The IRA CD rates are significantly lower than what United Texas Bank pays on their regular CD They aren’t the same products.

If you take money out of the IRA CD before the maturity date, United Texas Bank will charge an early withdrawal penalty. The penalty depends on the IRA CD term:

  • For CDs with maturities of one year or less, the penalty is three months of interest on the amount withdrawn.
  • For CDs with maturities over one year, the penalty is six months interest on the amount withdrawn.

You can open these IRA CDs online or at one of their Dallas branches. When you apply online, the application asks for you to list your name, address, Social Security Number and contact information. A representative from United Texas Bank will then contact you to finish the application.

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How United Texas Bank’s IRA CD rates compare

Most banks offer some if not all of their regular CDs for their IRAs but United Texas Bank has created completely different rates for their IRAs.

The is a major disappointment because their IRA CD rates are so much lower. Their 1 year IRA CD earns less than half of what you earn on a 12 month CD at United Texas Bank.

It’s a puzzling move and because of this decision, we do not recommend these IRA CDs. Either stick with their normal CDs or if you want to open a retirement plan, consider this list of high-paying IRA CDs instead.

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Overall review of United Texas Bank’s banking products

If a small organization like United Texas Bank is going to compete on the national online market, they need some impressive offers. Good news for them, they do just that. A couple of their CDs are as good as nearly any in the country. They also provide a solid money market account with excellent rates.

Their checking accounts are only average because they don’t earn enough interest, though they do come with a generous refund for out-of-network ATM transactions each month. They might be worth using to move money in and out of one of the higher-paying accounts at United Texas Bank. Finally, we would stay away from their IRA CDs and savings account because of their mediocre interest rates.

Overall, we got a good feeling from the United Texas Bank website and marketing materials. Everything is clearly explained and they use a simple, online application for all their products. Even if you aren’t a Dallas resident, keep United Texas Bank in mind for a quality CD or money market account.

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Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

David Rodeck
David Rodeck |

David Rodeck is a writer at MagnifyMoney. You can email David here

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Lake Michigan Credit Union Review: Checking, Savings, CD, Money Market and IRAs

Friday, October 19, 2018

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Sarah Li CainSarah Li Cain
Year Established1933
Total Assets$6.0B
LEARN MORE on Lake Michigan Credit Union’s secure websiteNCUA Insured

Founded in 1933 by a small group of teachers, Lake Michigan Credit Union is headquartered in Grand Rapids, Mich. It has more than 40 branches and 100 ATMs across western Michigan. The credit union is also part of the Allpoint network with more than 55,000 ATMs worldwide.

Members can benefit from the credit union’s Member Owner Rewards Enhancement (MORE) program, where you start earning rewards from the day you become a member.

Lake Michigan Credit Union’s products are available nationwide and anyone can become a member by making a $5 donation to the Amyotrophic Lateral Sclerosis (ALS) Association. Most of the credit union’s accounts can be opened online (described below), except for the youth savings account and the IRAs.

This review will cover the credit union’s checking, savings, CD, money market and IRA accounts.

Lake Michigan Credit Union’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.25%

Savings

Lake Michigan Credit Union Savings Account

2.15%

CIT Bank Savings Builder

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on CIT Bank’s secure website

Member FDIC

0.05%

CD Rates

Lake Michigan Credit Union 12 Month CD

2.55%

Goldman Sachs Bank USA High-yield 12 Month CD

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on Goldman Sachs Bank USA’s secure website

Member FDIC

1.05%

CD Rates

Lake Michigan Credit Union 36 Month CD

2.85%

Synchrony Bank 36 Month CD

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on Synchrony Bank’s secure website

Member FDIC

1.80%

CD Rates

Lake Michigan Credit Union 60 Month CD

3.10%

Barclays 60 Month Online CD

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on Barclays’s secure website

Member FDIC

In this review we’ll cover:

Lake Michigan Credit Union checking account options

Lake Michigan Credit Union savings account options

Lake Michigan Credit Union CD rates

Lake Michigan Credit Union money market account option

Lake Michigan Credit Union IRA options

Overall review of Lake Michigan Credit Union’s banking products

Lake Michigan Credit Union checking account options

Max Checking

Earn one of the highest rates around with this account.
APYMinimum Balance to Earn APY
3.00%$0.01 - $15,000
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None for in-network and Allpoint ATMs; $1 for out-of-network ATMs
  • ATM fee refund: Up to $15 per month
  • Overdraft fee: $30 each

This checking account has one of the best rates we’ve seen and is good for those who want a checking account with a top APY. The rate doesn’t encourage you to keep a large amount of cash as you don’t earn any interest once your account reaches $15,000.

With this account, you get free online banking, a debit card and bill pay if you authorize at least one monthly direct deposit. You also get ATM fee refunds and there are no fees to keep the account.

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Free Checking

A no-frills account that doesn’t earn you any interest.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: $0 for in-network and Allpoint ATMs; $1 for out-of network ATMs
  • ATM fee refund: None
  • Overdraft fee: $30 each

This is a pretty basic checking account that doesn’t offer anything unique. Account holders get a debit card, online banking and a starter pack of checks for free. If you’re looking to maximize your money, you’re probably better off going with the Max Checking account, which offers more with the exception of the free checks.

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Investor Checking

The checking account is a good place to park your money between investments.
APYMinimum Balance to Earn APY
0.25%$2,500
0.25%$5,000
0.35%$25,000
  • Minimum opening deposit: $5
  • Monthly account maintenance fee: $10 (this can be waived)
  • ATM fee: $0 for in-network and Allpoint ATMs; $1 for out-of network ATMs
  • ATM fee refund: None
  • Overdraft fee: $30 each

The credit union suggests this checking account to help you earn some interest while you’re in-between investment opportunities. In other words, this account is best for those who want to earn some interest while having the liquidity to pull funds out whenever they choose.

You can waive the monthly maintenance fee if you keep a daily minimum balance of $2,500. You also get free mobile and online banking.

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Advantage 50 Checking

This account gives some advantages to age, but not on its earnings.
APYMinimum Balance to Earn APY
0.25%None
  • Minimum opening deposit: None
  • Monthly account maintenance fee:: None
  • ATM fee: $0 for in-network and Allpoint ATMs, $1 for out-of network ATMs
  • ATM fee refund: None
  • Overdraft fee: $30 each

This is another free checking account but it’s meant for those ages 50 and older. You get free online banking, a debit card and two boxes of checks every year. Another perk is that you continue to earn interest no matter what amount you have in the account, and there are no minimum balances to maintain.

Otherwise, there isn’t much going on with this account. If you’re after higher rates and don’t care about the free checks, the credit union has other accounts with higher APYs and no fees.

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How Lake Michigan Credit Union’s checking accounts compare

Among Lake Michigan Credit Union’s checking accounts, the Max Checking account offers one of the highest rates we’ve seen when comparing it with our list of the 10 best online checking accounts. While there are no monthly fees, there are also no out-of-network ATM fee reimbursements, which are offered without limits by other banks.

As for the credit union’s other checking accounts, their rates fall short. Those accounts aren’t anything special, other than the fact that you get some free checks. In short, the Max Checking account is a great choice but you’ll probably want to pass on the others.

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Lake Michigan Credit Union savings account options

Member Savings

All members need to open this account to qualify for membership.
APYMinimum Balance to Earn APY
0.25% $100
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $100
  • Monthly account maintenance fee: $5 (can be waived)
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

Opening this savings account is required to establish membership. As long as you maintain a $300 minimum balance, you can avoid the $5 monthly maintenance fee. The only way to access your cash is by ACH or wire transfer.

One unique aspect of this account is that you can make sub-accounts to direct your money toward various savings goals, such as holidays, vacations and education. Keep in mind that Federal Reserve Regulation D limits you to six certain withdrawals/transfers a month, and there is a $5 excessive withdrawal fee.

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Max Savings

This account’s decent APY requires a high minimum balance.
APYMinimum Balance to Earn APY
0.25%$100
1.00%$100,000
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $100
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This account is best for those looking to maximize their savings, although you can only earn a decent rate if you have at least $100,000 deposited. The advantage is that there is no minimum balance since there isn’t a monthly maintenance fee. There isn’t ATM access to the account, but you can link it to your checking account to access your money.

Keep in mind that Federal Reserve Regulation D limits you to six certain withdrawals/transfers a month for savings accounts. Top that number and you’ll be charged $5 for each excessive related transaction you make.

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Holiday Club

It’s not a great rate, but the account does encourage you to save.
APYMinimum Balance to Earn APY
0.25%None
  • Minimum opening deposit: None
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This account is meant for those who want to stash away funds for a special purpose. It’s designed to discourage you from withdrawing from your savings. You can make withdrawals beforehand, but it’ll cost you $3 per withdrawal.

You can deposit as much as you want at any time, but the money will only be available — transferred to your checking or savings account — on Sept. 30 each year. Otherwise, there’s not much going for this account. If you want a higher APY, you may be better off putting your money in a CD.

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Kids and Teen Club

Help your child learn to save and earn a good APY with this account.
APYMinimum Balance to Earn APY
1.00%$1
0.25%$1,001
  • Minimum opening deposit: $5
  • Minimum balance amount to earn APY: $1
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This account is best for those who want to help their child or teen establish a savings account with a decent rate. Parents or guardians don’t need to be members, as membership to the credit union can be established under the youth’s name. The only way to access funds is in person or via bank transfer.

Because this is a savings account, your child is limited to six certain withdrawals/transfers a month — per Federal Reserve Regulation D limits — or else your child will be charged a $5 fee for each excess withdrawal/transfer.

How to get the Kids and Teen Club account

You can only open an account in person. Your child can establish membership just by opening this account and will need to bring along their Social Security card. Click here to find a location closest to you.

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How Lake Michigan Credit Union’s savings accounts compare

Unfortunately, Lake Michigan Credit Union’s savings accounts fall short of other online competitors. While some of their rates are comparable, here you need to have a high minimum deposit amount in order to qualify for the best rates. Other places don’t have minimum balance requirements to qualify for their top rates and some even have ATM access.

You will need to open a Members Savings account to establish eligibility, but you’re better off going elsewhere if you want higher rates. Feel free to check out our list of the best online savings accounts to shop around.

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Lake Michigan Credit Union CD rates

lakeCertificates of Deposit

Earn an even higher APY with VIP rates.
Current specials
TermAPYVIP bonus APY
8 months1.77%2.02%
14 months2.00%2.25%
25 months2.17%2.42%
Regular rates
TermAPYVIP bonus APY
3 months0.05%0.30%
5 months0.05%0.30%
6 months0.05%0.30%
7 months0.05%0.30%
9 months0.05%0.30%
10 months0.05%0.30%
11 months0.05%0.30%
12 months0.05%0.30%
13 months0.05%0.30%
15 months0.15%0.40%
17 months0.25%0.50%
18 months0.25%0.50%
24 months0.50%0.75%
30 months0.80%1.05%
36 months1.05%1.30%
48 months1.30%1.55%
60 months1.80%2.05%
  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: Depends on length of term:
    • Less than 12 months — 90 days’ interest
    • 12 months or longer — 180 days’ interest

These fixed-rate CDs that are best for those looking for a guaranteed rate of return in an investment account. Interest is compounded and credited monthly to the account.

To qualify for the 0.25% MORE VIP rate bonus, you’ll need to earn enough rewards points to qualify. Members are automatically enrolled in this program once they establish membership. You earn points for each product or service you have with the credit union.

When your account matures, you’ll have a 10-day grace period in which you can make additional deposits or withdrawals, or renew for another term. Otherwise, your account will automatically be renewed.

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How Lake Michigan Credit Union’s CD rates compare

The special rates are on par with what’s being offered out there. There aren’t as many options as the ones for regular rates, but they’re still a great choice. The regular rates they offer fall short of the ones on our list of the current best CD rates.

All this to say, depending on the term and whether you can qualify for the VIP bonus rate, these CDs are a good choice.

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Lake Michigan Credit Union money market account option

Money Market account

You can get limited check-writing capabilities with this account.
APYMinimum Balance to Earn APY
0.25%$2,500
0.30%$10,000
0.35%$25,000
0.40%$50,000
0.50%$100,000
0.50%$250,000
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $2,500
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This money market account doesn’t have any monthly fees and is best for those looking for a savings account that offers check writing, though it is limited. You can access your cash via online banking. However, you do need to keep a minimum amount to earn the advertised APY, so if that’s a concern you can consider linking a savings account with a higher APY with a checking account to get check-writing capabilities.

Since this is considered a savings account, Federal Reserve Regulation D limits account holders to six certain withdrawals/transfers a month. The credit union will charge you $5 for each excessive related transaction you make.

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How Lake Michigan Credit Union’s money market account compares

The credit union’s money market rates fall way short compared with what’s being offered out there. Sure, you get limited check-writing capabilities, but so do some of the other banks on our list of the best money market accounts. In other words, you’re better off looking elsewhere.

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Lake Michigan Credit Union IRA options

IRA CD rates

There’s nothing special on these rates that are on par with what’s being offered elsewhere.

IRA CD

Current specials
TermAPYVIP bonus APY
8 months1.77%2.02%
14 months2.00%2.25%
25 months2.17%2.42%
Regular rates
TermAPYVIP bonus APY
3 months0.05%0.30%
5 months0.05%0.30%
6 months0.05%0.30%
7 months0.05%0.30%
9 months0.05%0.30%
10 months0.05%0.30%
11 months0.05%0.30%
12 months0.05%0.30%
13 months0.05%0.30%
15 months0.15%0.40%
17 months0.25%0.50%
18 months0.25%0.50%
24 months0.50%0.75%
30 months0.80%1.05%
36 months1.05%1.30%
48 months1.30%1.55%
60 months1.80%2.05%
  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: Depends on length of term:
    • Less than 12 months — 90 days interest
    • 12 months or longer — 180 days interest

This CD is best for those looking for a tax-sheltered or tax-free retirement account that offers a guaranteed rate of return. Any interest you earn is compounded and deposited into your account monthly.

The MORE VIP rate listed in the table above is for members who have earned enough rewards points to qualify. This program is for all members of the credit union and you’re automatically enrolled once you become a member. With each account you open or service you use, you get to earn points. You can log into your account at any time to see what your points can get you.

There is a 10-day grace period once your account matures in which you can make withdrawals, additional deposits or renew for another term. If nothing is done, your account will automatically be renewed.

How to get Lake Michigan Credit Union’s IRA CDs

To open an IRA CD, you’ll need to visit a branch. Contact the IRA department at 1-800-242-9790 ext. 6335 for more information.

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IRA Money Market Savings account

Earn a decent rate across all tiers.
APYVIP bonus APYMinimum Balance to Earn APY
0.80%0.80% None
  • Minimum opening deposit: None
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This is pretty much a no-frills IRA money market account that offers the ability to earn interest with any amount you deposit. Since this is a retirement account, you are limited to how much can you contribute per year as regulated by the IRS. And, you’re also limited to six certain withdrawals a month as mandated by Federal Reserve Regulation D. If you make excessive withdrawals you’ll be charged $5 for each one and potentially any tax penalties if you take money out before you’re 59½.

How to get Lake Michigan Credit Union’s IRA Money Market Savings account

You’ll need to go in person to open an IRA money market account. Contact the IRA department at 1-800-242-9790 ext. 6335 for more information.

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How Lake Michigan Credit Union’s IRA rates compare

Some of the rates — in particular, their current specials — are on par with some of the best rates out there, especially if you can qualify for the VIP rates. Otherwise, the other terms are pretty lackluster and it’s probably a better idea to check out our list of the best IRA CD rates and see what’s out there.

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Overall review of Lake Michigan Credit Union’s banking products

Where Lake Michigan Credit Union shines the most is with its Max Checking account. It’s got one of the highest APYs we’ve seen and it also offers some ATM refunds. Its CD rates are also pretty good if you take advantage of their current specials.

However, the rest of the products in this review fall short when compared with rivals out there. If you want a great checking or CD account, there are some decent choices at Lake Michigan Credit Union. If not, then doing some comparison shopping is the way to go.

Opening most of the accounts is easily done online by filling out an application. First, you need to qualify for membership by donating $5 to the Amyotrophic Lateral Sclerosis (ALS) Association and opening a members savings account. The form will ask for information such as your address, Social Security number and reason for joining. Then, you can fund both the member savings and investor checking accounts at the same time.

The exceptions — as noted above — are the IRAs and the Kids and Teen Club savings accounts, which require in-person opening.

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Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Sarah Li Cain
Sarah Li Cain |

Sarah Li Cain is a writer at MagnifyMoney. You can email Sarah Li here

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Reviews

NASA Federal Credit Union Review: Checking, Savings, CD, Money Market and IRA Accounts

Friday, October 19, 2018

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Emilia BentonEmilia Benton
Year Established1949
Total Assets$2.4B
LEARN MORE on NASA Federal Credit Union’s secure websiteNCUA Insured

NASA Federal Credit Union was established in 1949, when seven NASA employees received approval to charter the credit union for all employees. The credit union is currently headquartered in Upper Marlboro, Mass., and operates out of 12 physical locations in Maryland, Virginia and Washington, D.C. It serves more than 140,000 memberships.

Membership is open to employees or retirees of NASA headquarters, any NASA center or facility or the National Academy of Sciences. Members of any of NASA Federal Credit Union’s 900 partner companies or associations (visit the website to view a complete list) and relatives or household members of existing credit union members are also eligible. If none of those requirements apply to you, the credit union will provide you with a complimentary membership to the National Space Society to grant you full membership benefits and eligibility.

NASA Federal Credit Union is a part of the CO-OP Network, which is a nationwide network of credit unions that share 30,000 ATMs and over 5,000 branches. Members can bank without incurring a fee if they stay within that network. In order to become a member and open any other NASA Federal Credit Union products, you must open a Share Savings account, which requires a monthly balance requirement of just $5 and comes with no monthly maintenance fee.

NASA Federal Credit Union’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.10%

Savings

NASA Federal Credit Union Prime Savings

2.15%

CIT Bank Savings Builder

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on CIT Bank’s secure website

Member FDIC

1.25%

CD Rates

NASA Federal Credit Union 12 Months Share Certificate

2.55%

Goldman Sachs Bank USA High-yield 12 Month CD

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on Goldman Sachs Bank USA’s secure website

Member FDIC

1.55%

CD Rates

NASA Federal Credit Union 36 Months Share Certificate

2.85%

Synchrony Bank 36 Month CD

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on Synchrony Bank’s secure website

Member FDIC

1.95%

CD Rates

NASA Federal Credit Union 60 Months Share Certificate

3.10%

Barclays 60 Month Online CD

LEARN MORE Secured

on Barclays’s secure website

Member FDIC

In this review, we’ll cover:

NASA Federal Credit Union checking account options

NASA Federal Credit Union savings account options

NASA Federal Credit Union CD rates

NASA Federal Credit Union Money Market account options

NASA Federal Credit Union IRA options

Overall review of NASA Federal Credit Union’s banking products

NASA Federal Credit Union checking account options

Premier Checking account

A basic noninterest-bearing checking account.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: $7, which can be waived if you maintain a combined balance of $2,500 in your NASA Federal Credit Union accounts
  • ATM fee: None at CO-OP network ATMs and none at out-of-network ATMs if you qualify for Platinum Rewards (meaning you maintain a balance of $50,000 or more). If you qualify for Gold Rewards (meaning you maintain a balance of $20,000 to $49,999) or Silver Rewards (meaning you maintain a balance of $2,500 to $19,999 and qualify through one of the program’s criteria), you get six free transactions at out-of-network ATMs per month. If you qualify for Bronze Rewards (meaning you maintain a balance of up to $2,499), you get three free transactions at out-of-network ATMs per month. After you reach those limits, or if you don’t qualify for any of these programs, the fee is $1. Outside banks may charge additional fees.
  • ATM fee refund: None
  • Overdraft fee: $32

This checking account does not offer the ability to earn interest. The monthly maintenance fee isn’t a large one, but if you’re not able to meet that requirement to waive it, you could easily find other checking accounts that won’t charge a fee and without a catch. As noted above, there are various rewards programs that allow you to get a handful of (or even unlimited) ATM fee refunds. Please note that to qualify to Silver rewards, you must meet one of the following criteria:

  • You are a primary credit union members that is age 23 or under;
  • You are a primary credit union members age 62 or older;
  • You are a new member during the first 90 days of membership;
  • You are a household member of a credit union member who already qualifies for Silver Rewards

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Premier eChecking account

Another noninterest-bearing checking account with slightly more perks.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: $8, which can be waived with a recurring direct deposit or if you use Active Bill Pay, which requires paying three bills per month with the credit union’s online bill pay service.
  • ATM fee: None at CO-OP network ATMs and none at out-of-network ATMs if you qualify for Platinum Rewards (meaning you maintain a balance of $50,000 or more). If you qualify for Gold Rewards (meaning you maintain a balance of $20,000 to $49,999) or Silver Rewards (meaning you maintain a balance of $2,500 to $19,999 and qualify through one of the criteria mentioned earlier), you get six free transactions at out-of-network ATMs per month. If you qualify for Bronze Rewards (meaning you maintain a balance of up to $2,499), you get three free transactions at out-of-network ATMs per month. After you reach those limits, or if you don’t qualify for any of these programs, the fee is $1. Outside banks may charge additional fees.
  • ATM fee refund: None
  • Overdraft fee: $32

As with the Premier Checking account, this account also doesn’t earn any interest and also has a small monthly maintenance fee that can be waived. The main difference between the two accounts are the requirements to waive the monthly fee, and that this one has a couple of additional perks such as free online bill pay and one free box of checks per year.

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Premier Preferred Checking account

A checking account that allows you to earn a small amount of interest.
APYMinimum Balance to Earn APY
0.05%$0.01
  • Minimum opening deposit: None
  • Monthly account maintenance fee: $9, which can be waived if you maintain an average daily balance of at least $2,500.
  • ATM fee: None at CO-OP network ATMs and none at out-of-network ATMs if you qualify for Platinum Rewards (meaning you maintain a balance of $50,000 or more). If you qualify for Gold Rewards (meaning you maintain a balance of $20,000 to $49,999) or Silver Rewards (meaning you maintain a balance of $2,500 to $19,999 or qualify through one of the program’s criteria), you get six free transactions at out-of-network ATMs per month. If you qualify for Bronze Rewards (meaning you maintain a balance of up to $2,499), you get three free transactions at out-of-network ATMs per month. After you reach those limits, or if you don’t qualify for any of these programs, the fee is $1. Outside banks may charge additional fees.
  • ATM fee refund: None
  • Overdraft fee: $32

The biggest difference between this checking account and the others offered by NASA Federal Credit Union is that this one has the ability to earn interest, albeit at a very low rate.

Like the other accounts, it has a monthly fee that isn’t all that high, but if you aren’t able to meet the minimum balance requirement to waive it, you might be better off opening a checking account elsewhere that will offer you a higher rate without any monthly fees or hoops to jump through to waive them. This account also comes with a free box of checks every year.

How to get NASA Federal Credit Union’s checking accounts

You can open all of NASA Federal Credit Union’s Premier Checking and Premier eChecking accounts online after establishing membership by opening a Share Savings Account. You’ll need to be a U.S. citizen or permanent resident and have your Social Security number and a government-issued ID on hand to apply for membership and open an account.

For the Premier Preferred Checking account, interested individuals can put in a request to open the account online, after which a credit union representative will contact them to move forward with the process. Or, they can contact the credit union by phone or visit a local branch.

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How NASA Federal Credit Union’s checking accounts compare

As we mention in our list of the best online checking accounts out there, the greatest accounts are those that allow account holders to earn interest, have no monthly fees and offer ATM fee refunds. NASA Federal Credit Union’s checking accounts lose points on all these fronts, with the exception of the Premier Preferred Checking account, which earns a very small amount of interest.

These accounts do come with some perks, however, including early payroll access, cashback rewards on debit card purchases and one forgiven overdraft fee each year. But you may be better off researching checking accounts that offer higher interest rates.

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NASA Federal Credit Union savings account options

Share Savings account

This account is required to establish membership with the credit union.
APYMinimum Balance to Earn APY
0.10%None
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: None at CO-OP network ATMs and none at out-of-network ATMs if you qualify for Platinum Rewards (meaning you maintain a balance of $50,000 or more). If you qualify for Gold Rewards (meaning you maintain a balance of $20,000 to $49,999), or Silver Rewards (meaning you maintain a balance of $2,500 to $19,999 and meet one of its other qualifying factors), you get six free transactions at out-of-network ATMs per month. If you qualify for Bronze Rewards (meaning you maintain a balance of up to $2,499), you get three free transactions at out-of-network ATMs per month. After you reach those limits, or if you don’t qualify for any of these programs, the fee is $1. Outside banks may charge additional fees.
  • ATM fee refund: None
  • Overdraft fee: $32

If you’re interested in opening any other products at NASA Federal Credit Union, you’re required to also open this account beforehand or at the same time. Luckily, it has a very small opening deposit requirement and no monthly maintenance fee, so having this account open on the side won’t hurt you or be a pain to manage.

As an added bonus, the account earns interest — albeit a very small amount. As with all savings accounts, it’s subject to Federal Reserve Regulation D, which limits certain withdrawals and transactions to six per month.

How to get NASA Federal Credit Union’s Share Savings account

You can easily open this account online, by phone or in person at a branch. You’ll need to be a U.S. citizen or permanent resident to apply for membership, and provide a Social Security number and a government-issued ID to open an account.

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Holiday Club account

This account allows you to put funds away specifically for holiday savings.
APYMinimum Balance to Earn APY
0.10%None
  • Minimum opening deposit: None
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $32

This account easily lets you sock away cash for holiday purchases and expenses, while earning a small amount of interest. In November, your funds will be moved to your checking or savings account (whichever you choose) so you can start getting ready for the holidays. Since this is a savings account, it’s subject to Federal Regulation D, which limits you to making six certain withdrawals/transfers per month.

How to get NASA Federal Credit Union’s Holiday Club Savings account

You can open this account online at the same time that you open your Share Savings Account. You can also open this account by phone or in person by visiting a branch. In addition to being a U.S. citizen or permanent resident, you’ll need your Social Security number and a government-issued ID to apply for membership and open an account.

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Sub-Savings accounts

A savings account that allows you to put away funds for a specific purpose, like a vacation or new car.
APYMinimum Balance to Earn APY
0.10%None
  • Minimum opening deposit: None
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: None at CO-OP network ATMs. This account is not accessible through out-of-network ATMs.
  • ATM fee refund: None
  • Overdraft fee: $32

Once you’ve become a member and opened a Share Savings account with a minimum deposit of $5, you can open one or more savings accounts and label them as you’d like. They will then appear right under your main savings account in eBranch, the credit union’s online banking portal, and you can set it up to make automatic transfers from your main savings account.

The only requirement for this account is that you maintain a minimum balance of $5 in your Share Savings account, which also serves as your membership dues. Like other savings accounts, this one is subject to Federal Reserve Regulation D, which limits certain transactions and withdrawals to six per month.

How to get NASA Federal Credit Union’s Sub Savings account

Existing NASA Federal Credit Union members can open this account through eBranch — the credit union’s online banking platform — over the phone, or in person at a local branch.

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Education Savings account

A savings account that allows you to put away funds specifically for a child, grandchild or other family member’s education.
APYMinimum Balance to Earn APY
0.15%None
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $32

As the name suggests, this account allows you to save funds for family members’ future educational expenses. You can deposit up to $2,000 per year for each child under age 18, who can use the funds for educational purposes until age 30. These funds are eligible for tax breaks, though the credit union recommends consulting a tax adviser for further information.

Like other savings accounts, this account is subject to Federal Reserve Regulation D, meaning you’re limited to six certain withdrawals or transactions per month.

How to get NASA Federal Credit Union’s Education Savings account

Once you’re an established member of NASA Federal Credit Union, you can open the account online, over the phone or in person at a local branch.

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How NASA Federal Credit Union’s savings accounts compare

NASA Federal Credit Union’s savings accounts have their lack of monthly fees and balance requirements going for them, but the rates really can’t compare to some of the best savings accounts options on our list.

While you need to open its basic Share Savings account to be able to open any other product at the credit union, we wouldn’t recommend establishing membership for this product alone.

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NASA Federal Credit Union CD rates

Share Certificates

Standard CDs with mostly mediocre rates.
TermAPYMinimum balance requirement
6 months1.20%$1,000
12 months1.25%$1,000
15 months2.75%
$5,000
24 months1.35%$1,000
36 months1.55%$1,000
48 months1.70%$1,000
49 months3.00%$5,000
60 months1.95%$1,000
  • Minimum opening deposit: Varies
  • Minimum balance amount to earn APY: Varies
  • Early withdrawal penalty: 182 days’ worth of dividends for those with terms up to 24 months and 365 days’ worth of dividends for certificate accounts with terms greater than 24 months

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Early Savers certificates

A CD to save for your child’s educational expenses.
TermAPYMinimum balance requirement
12 months1.25%$50
  • Minimum opening deposit: $50
  • Minimum balance amount to earn APY: $50
  • Early withdrawal penalty: 180 days’ worth of dividends on the amount withdrawn

This certificate is intended to be saved for your child’s educational future if he or she is 23 years old or younger. (After he or she turns 24, it will roll into a standard 12 month certificate term.) It can be opened with as little as $50, and additional contributions can be made throughout its 12 month term.

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Add-On certificates

A CD with a low opening deposit that allows you to make additional deposits during its term.
TermAPYMinimum balance requirement
12 months1.15%$250
  • Minimum opening deposit: $250
  • Minimum balance amount to earn APY: $250
  • Early withdrawal penalty: 180 days’ worth of dividends on the amount withdrawn

This CD is a great option for those who are looking for a way to build their savings but don’t have a lot to deposit right away. The biggest advantage of this 12 month CD is that you can make additional deposits of up to $2,500 per month throughout its short term.

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Premier Bump-Rate certificates

Share certificates that allow you to increase your rate one time during your term.
TermAPYMinimum balance requirement
24 months1.30%$1,000
36 months1.50%$1,000
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty: 182 days’ worth of dividends for those with terms up to 24 months and 365 days’ worth of dividends for certificate accounts with terms greater than 24 months

NASA Federal Credit Union’s Bump-Rate certificates are a good option for those who are hesitant to put funds away in a long-term account, as these offer the flexibility of increasing to a better rate if you see rates go up at some point.

How to get NASA Federal Credit Union’s certificates

Individuals interested in opening one of NASA Federal Credit Union’s certificates can do so easily online as long as they commit to also opening the Share Savings account required to establish membership.

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How NASA Federal Credit Union’s certificate rates compare

NASA Federal Credit Union offers a wide range of share certificates, from six months to five years. While some of them have significant advantages like low opening deposit requirements and the ability to make several additional deposits during their short terms, most of their rates really don’t compare with the best CD offerings out there — in fact, many of them fall below the national average. We recommend doing your research and going for a certificate that offers a rate that will really give you the most bang for your buck.>

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NASA Federal Credit Union money market account options

Premier Money Market account

This account allows you to earn a higher rate than a basic savings account, with no monthly fees to boot.
APYMinimum Balance to Earn APY
0.80% $10,000
  • Minimum opening deposit: $10,000
  • Minimum balance to earn APY: $10,000
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $32

This account’s rate, while low compared with others out there, is higher than the national average. Its minimum balance requirement is comparable to the competition, and the lack of a monthly maintenance fee is a definite plus. Like other savings accounts, it’s subject to Federal Reserve Regulation D, which limits certain withdrawals and transactions to six per month.

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Premier Advantage Money Market account

This tiered account has higher balance requirements but not much higher rates than the credit union’s other money market accounts.
APYMinimum Balance to Earn APY
0.65%$0-$49,999.99
0.85%$50,000-$99,999.99
0.95%$100,000+
  • Minimum opening deposit: $25,000
  • Minimum balance to earn APY: Varies
  • Monthly account maintenance fee: $10 if balance falls below $25,000 in a given month
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $32

While this money market account has a higher opening deposit requirement than the Premier Money Market account, it allows you to earn a higher rate at different tiers (though these rates are still lower than the competition).

It does have a monthly maintenance fee that can easily be avoided so long as you don’t let your balance dip below the minimum deposit amount. Like other savings accounts, this one is subject to Federal Reserve Regulation D, which limits certain withdrawals and transactions to six per month.

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Premier Plus Money Money Market account

This account has a much bigger minimum deposit requirement to open than the credit union’s other money market accounts, but not a much higher rate.
APYMinimum Balance to Earn APY
0.85% $40,000
  • Minimum opening deposit: $40,000
  • Minimum balance to earn APY: $40,000
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $32

While it has the lack of a monthly fee going for it, this account still offers a subpar rate compared to the competition, and in order to get it, you must meet its minimum balance requirement, which is a bit steep compared with other accounts. Since it’s a savings account, it’s also subject to Federal Reserve Regulation D, which limits certain withdrawals/transfers to six per month.

How to get NASA Federal Credit Union’s money market accounts

Existing NASA Federal Credit Union members have the ability to open a money market account through eBranch, the credit union’s online banking platform. They can also do so over the phone or in person at a local branch.

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How NASA Federal Credit Union’s money market accounts compare

As we mentioned above, all of NASA Federal Credit Union’s accounts fall short when it comes to their rates. You can earn much higher rates on the money market accounts on our list, many of which have significantly lower opening deposit and minimum balance requirements. You can’t even open these accounts without being an existing member, so we wouldn’t recommend seeking out NASA Federal Credit Union specifically for these accounts.

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NASA Federal Credit Union IRA options

IRA certificates with the same rates as the regular certificate options.

TermAPYMinimum balance requirement
6 months1.20%$1,000
12 months1.25%
$1,000
15 months2.75%
$5,000
24 months1.35%
$1,000
36 months1.55%$1,000
48 months1.70%$1,000
49 months3.00%$5,000
60 months1.95%$1,000
  • Minimum opening deposit: Varies
  • Minimum balance amount to earn APY: Varies
  • Early withdrawal penalty: 182 days’ worth of dividends for those with terms up to 24 months and 365 days’ worth of dividends for certificate accounts with terms greater than 24 months

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Early Savers certificates

A CD for your child’s educational expenses.
TermAPYMinimum Balance Requirement
12 months1.25%$50
  • Minimum opening deposit: $50
  • Minimum balance amount to earn APY: $50
  • Early withdrawal penalty: 180 days’ worth of dividends on the amount withdrawn

As with the regular share certificate, this meant to be put toward your child’s educational future if he or she is 23 years old or under. (After he or she turns 24, it will roll into a standard 12 month certificate term.) With as little as $50 deposited at opening, additional contributions can be made throughout the certificate’s 12 month term.

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Add-On certificates

A CD with a low opening deposit that allows you to make additional deposits during its term.
TermAPYMinimum balance requirement
12 month1.15%$250
  • Minimum opening deposit: $250
  • Minimum balance amount to earn APY: $250
  • Early withdrawal penalty: 180 days’ worth of dividends on the amount withdrawn

As with the regular certificate, this IRA share certificate option could be beneficial for individuals wanting to grow their savings but don’t have a lot to deposit right away. This 12 month CD allows you to make additional deposits of up to $2,500 per month throughout its short term. At the end of its term, this certificate will roll over into a regular 12 month certificate.

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Premier Bump-Rate certificates

IRA certificates that allow you to increase your rate one time.
TermAPYMinimum balance requirement
24 months1.30%$1,000
36 months1.50%$1,000
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty: 182 days’ worth of dividends for those with terms up to 24 months and 365 days’ worth of dividends for certificate accounts with terms greater than 24 months

NASA Federal Credit Union’s IRA Bump-Rate certificates are a good option for those who want to save for retirement but are hesitant to put funds away in a long-term account. These certificates offer members the chance to a higher rate if they see rates go up at some point during their term. Once your term ends, your funds will roll over into a regular IRA share certificate of the same term length.

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How NASA Federal Credit Union’s IRA CD rates compare

NASA Federal Credit Union’s IRA share certificates are all virtually the same as its regular share certificates; the only difference is that these are designated as retirement savings and must be opened within the credit union’s online IRA Service Center. Unfortunately, the similarities line up right down to the rates, which really don’t compare to the best IRA CD rates out there, despite their flexible terms and deposit requirements. We say look elsewhere if you really want to see your retirement savings grow.

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IRA savings account

You can open this account either as a traditional or Roth IRA.
APYMinimum Balance to Earn APY
0.15% None
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

NASA Federal Credit Union’s IRAs, which can be opened either in Roth or traditional versions, are pretty standard as far as these accounts go. Although the interest rate is pretty low, the low opening deposit requirement is a plus for those seeking flexibility on this front. Like all savings accounts, these are subject to Federal Reserve Regulation D, which limits certain withdrawals/transfers to six per month.

How to get NASA Federal Credit Union’s IRAs and IRA certificates

Existing NASA Federal Credit Union members can open its IRAs and IRA certificates through the online IRA Service Center within the eBranch online banking platform. They can also do so over the phone or in person at a local branch.

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Overall review of NASA Federal Credit Union’s banking products

We hate to say it, but most of NASA Federal Credit Union’s products fall short when it comes to their rates, which is often one of the most important things customers prioritize when growing savings funds. The flexibility that comes with many of its share certificates is a definite plus, but overall, shop around to ensure that you’re getting the most worthwhile account to build your funds.

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Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Emilia Benton
Emilia Benton |

Emilia Benton is a writer at MagnifyMoney. You can email Emilia here

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Reviews

OneWest Bank Review: Checking, Savings, CD, Money Market and IRA Accounts

Friday, October 19, 2018

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Sarah Li CainSarah Li Cain
Year Established2009
Total Assets$41.7B
LEARN MORE on OneWest Bank’s secure websiteMember FDIC

Headquartered in Pasadena, Calif., OneWest Bank is a division of CIT Bank with 70 branches in the Southern California area. Its offerings include real estate loans, deposit products and retirement accounts.

Unfortunately, not all of their products are available nationwide. Currently, only their Green Savings account, CDs and IRA CDs are available across the country; all other products are only offered to those residing in Southern California.

This review will cover the bank’s checking, savings, CD, money market and IRA accounts. Rates may vary by region; the information below is based on rates closest to the bank’s headquarters, using ZIP code 91103.

OneWest Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.05%

Savings

OneWest Bank Personal Savings

2.15%

CIT Bank Savings Builder

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0.55%

CD Rates

OneWest Bank 1 Year CD

2.55%

Goldman Sachs Bank USA High-yield 12 Month CD

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1.20%

CD Rates

OneWest Bank 3 Year CD

2.85%

Synchrony Bank 36 Month CD

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1.40%

CD Rates

OneWest Bank 5 Year CD

3.10%

Barclays 60 Month Online CD

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In this review we will cover:

OneWest Bank checking account options

OneWest Bank savings account options

OneWest Bank CD rates

OneWest Bank money market account options

OneWest Bank IRA account options

Overall review of OneWest Bank’s banking products

OneWest Bank checking account options

Personal checking

This account will give you your first order of checks free.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $5 (this can be waived)
  • ATM fee: None
  • ATM fee refund: Up to $20 per month
  • Overdraft fee: $30

This checking account is great for those looking for a basic checking account with low fees. You don’t earn any interest, but you do get features such as free checks, a debit card, bill pay, and mobile banking. To get the monthly maintenance fee waived, you need to either choose to receive eStatements, be a minor or at least 55 years old, or maintain an average balance of $1,000.

For those who are interested in ATM refunds, you can get up to $20 per month in reimbursement, depending on your minimum average balance. You’ll receive up to $10 in refunds for balances up to $9,999 and up to $20 for balances of $10,000 and more.

To open an account, head over to their personal checking account page and click on the “Open an Account” button. You’ll be prompted to enter your ZIP code to ensure that you’re able to open this accounts (only Southern California residents can apply). Then you’ll need to agree to the bank’s disclosures and enter your personal details including your name, address, Social Security number and driver’s license.

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Premium checking

Earn a little bit of interest and the potential for ATM refunds.
APYMinimum Balance to Earn APY
0.01%
< $1,000
0.05%
$1,000
0.05%
$5,000
0.05%
$10,000
0.10%
$25,000
0.20%
$50,000
0.20%
$100,000
0.01%
$10,000,000
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $10 (this can be waived)
  • ATM fee: None
  • ATM fee refund: Up to $20 per month (details below)
  • Overdraft fee: $30

If you want to earn some interest with a checking account, this one is OneWest Bank’s mid-tier product. However, you’re not going to earn much even if you maintain a high balance amount compared to other accounts.

You get the same features as the personal checking account such as a debit card, bill pay, free checks, and mobile banking. You can also get the monthly maintenance fee waived if you maintain a $1,000 minimum average balance.

This account also offers ATM refunds but only if you maintain a $5,000 minimum average balance. Receive up to $10 in refunds per month for up to $9,999 and up to $20 in refunds per month for balances of at least $10,000.

Head over to OneWest Bank’s premium checking account page and click on the “apply now” button. Enter in your ZIP code, since only Southern California residents can apply. After agreeing to the bank’s disclosures, enter your personal information such as your name, address, driver’s license and Social Security number.

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OneAccount checking

Get free checks with this account.
APYMinimum Balance to Earn APY
0.05%
< $1,000
0.05%
$1,000
0.05%
$5,000
0.10%
$10,000
0.10%
$25,000
0.40%
$50,000
0.60%
$100,000
0.60%
$10,000,000
  • Minimum opening deposit: $1,000
  • Monthly account maintenance fee: $25 (this can be waived)
  • ATM fee: None
  • ATM fee refund: Up to $20/month (details below)
  • Overdraft fee: $30

The OneAccount checking account offers the highest rates out of all three the bank offers, though you’ll need a high minimum account balance in order to take advantage of them. The monthly maintenance fee seems pretty steep, but you can get it waived if you maintain a minimum average balance of $10,000.

Like the other checking accounts offered, you can get ATM refunds. If you maintain at least a $5,000 minimum average balance, you get up to $10 in refunds a month for a minimum average balance up to $9,999, and up to $20 a month if your balance is between $10,000 and $49,999. With a balance of $50,000 or more, you are eligible for unlimited reimbursement.

Other features include free checks, a debit card, bill pay and online banking.

First, go to the OneAccount checking account page on OneWest Bank’s website and click on the “apply now” button. After entering your ZIP code to verify you’re in the Southern California area, you’ll be asked to agree to their disclosures before heading to the application. Then, fill in your personal details such as your name, address, Social Security number and driver’s license and fund your account.

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How OneWest Bank’s checking accounts compare

Sure, you get free checks and some ATM refunds, but the rates for OneWest Bank’s check accounts are minuscule compared with other online banks. Some of their competitors offer rates at least three times what this bank offers, plus unlimited ATM fees. If you’re really after those free checks, these accounts could be for you — but if not, you’re probably going to do better looking elsewhere.

To see what rates you might qualify for elsewhere, check out the 10 best online checking accounts.

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OneWest Bank savings account options

Personal savings

The rates are low, but you do get limited check-writing capabilities.
APYMinimum Balance to Earn APY
0.05%
<$1,000
0.05%
$1,000
0.05%
$5,000
0.15%
$10,000
0.20%
$25,000
0.35%
$50,000
0.40%
$100,000
0.40%
$10,000,000
  • Minimum opening deposit: $100
  • Minimum balance to earn APY: none
  • Monthly account maintenance fee: $3 (this can be waived)
  • ATM fee: none
  • ATM fee refund: none
  • Overdraft fee: N/A

The personal savings account is a low-cost account that offers you the option to receive limited check-writing capabilities. You also get a free ATM card and online banking. If you want the monthly maintenance fee waived, you’ll need to either choose to receive eStatements or maintain a $1,000 minimum average balance. Minors and people who are are least 55 years old don’t need to pay the monthly fee.

If you intend on making more than 6 withdrawals/transfers a month, you’ll be charged a $10 excess activity fee for each one. That’s because federal Regulation D mandates that savings accounts are limited to six certain withdrawals per statement cycle.

This account isn’t available nationwide, so you’ll need to first head to OneWest Bank’s personal and enter your ZIP code once you click on the “apply now” button on the personal savings account page. After, agree to the disclosures and fill out the application which includes divulging information such as your name, address and Social Security number. Then you can fund your account.

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Green savings

This account is available nationwide but doesn’t stand out amongst its competitors.
APYMinimum Balance to Earn APY
0.10%
<$1,000
0.10%
$1,000
0.10%
$5,000
0.20%
$10,000
0.25%
$25,000
0.40%
$50,000
0.45%
$100,000
0.20%
$10,000,000
  • Minimum opening deposit: $100
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: $0
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

The green savings account is a no-frills account that is available nationwide, though the rates aren’t particularly high. Unlike the personal savings account, you don’t get check-writing capabilities or ATM access, though you do get online, mobile and telephone banking. There is also no option to receive paper statements, just eStatements.

Like other savings accounts, you are limited to six certain withdrawals/transfers a month because of federal Regulation D. If you make more than the allotted amount, there’ll be a $10 excess activity fee per transaction.

Head to the Green Savings account page and click on the “apply now” button. You’ll need to enter your ZIP code, then agree to their disclosures. The application form will ask you to provide details such as your name, address and Social Security number, and then fund your account.

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How OneWest Bank’s savings accounts compare

While it is a nice perk that you get ATM access and limited check-writing capabilities with the personal savings account, the product isn’t available nationwide. In addition, both the banks’ savings accounts have rates that are far below compared with our list of the best online savings accounts.

If you’re in the Southern California area, it may make sense to open an account for the limited check writing-capabilities — otherwise, you could be better off looking elsewhere.

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OneWest Bank CD rates

Certificates of deposit

Earn more with the high-yield rates.
TermAPY
3 months0.30%
6 months0.45%
9 months0.50%
1 year0.55%
13 months0.85%
18 months1.00%
2 years1.10%
3 years1.20%
4 years1.30%
5 years1.40%
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty: Depends on term:
    • 90 to 365 days — 90 days’ simple interest
    • 365 days to 18 months — 180 days’ simple interest
    • Up to 2 years — 270 days’ simple interest
    • More than 2 years — either 2% on amount withdrawn or a market adjustment, whichever is greater (explained below)

These fixed rates CDs guarantee a rate of return if you keep the entire balance until maturity.

Interest earned is compounded daily and credited either monthly, quarterly or at maturity depending on your CD term. You can choose to keep interest earned in the account or withdraw. Once the CD matures, you have a seven-day grace period in which to deposit, withdraw or renew for another term.

The early withdrawal penalty is fairly straightforward except for terms two years or more. The market adjustment mentioned above refers to how much interest the bank will pay if it were to replace your CD with another “replacement CD” at a higher cost. This “replacement CD” is a term that is closest (but not longer) to your original CD term.To calculate this rate, OneWest bank will take the difference between the rate in your original CD and the current advertised interest rate for the replacement CD. This number will then be multiplied with the amount you intend to withdraw, times the number of years that’s left on your original CD term. If this number is greater than 2% of the amount withdrawn, then this is your early withdrawal penalty.

Head to the OneWest Bank website and fill out an online application form. You’ll be asked to fill in personal details such as your name, address, Social Security number and driver’s license. After that, just fund your account.

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How OneWest Bank’s CD rates compare

The rates currently being offered aren’t that great by comparison, so if you’re interested in better rates for longer terms, then you’ll want to check out our list of the current best CD rates.

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OneWest Bank money market account options

Premium money market

You get an ATM card and limited check-writing capabilities with this account.
APYMinimum Balance to Earn APY
0.15%
<$1,000
0.15%
$1,000
0.15%
$5,000
0.25%
$10,000
0.40%
$25,000
0.50%
$50,000
0.60%
$100,000
0.60%
$10,000,000
  • Minimum opening deposit: $1,000
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: $10 (this can be waived)
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: N/A

This money market account has ATM access and limited check-writing capabilities. You also get bill pay, online, mobile and telephone banking. You earn higher rates but it the minimum account balance seems pretty steep. Also, watch to see how many withdrawals/transfer you make as you’re limited to a certain six per month because of Regulation D. Otherwise, you’re looking at a $10 excess activity fee per transaction.

If you can maintain a minimum average balance of $10,000, you can get the monthly maintenance fee waived.

This account isn’t available nationwide, so you’ll need to first head to OneWest Bank’s personal and enter your ZIP code once you click on the “apply now” button on the personal savings account page. After, agree to the disclosures and fill out the application which includes information such as your name, address and Social Security. Then you can fund your account.

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How OneWest Bank’s money market accounts compare

Sure, you get ATM access and limited check-writing capabilities, but the rates fall short compared with other online banks. If check writing and ATM access is important to you, this account could work. However, other accounts on our list of the best money market rates have have similar features, so you’ll want to shop around before deciding what’s best for you.

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OneWest Bank IRA account options

IRA CD

Just your average IRA CD.
TermAPY
3 months0.30%
6 months0.45%
9 months0.50%
1 year0.55%
13 months0.85%
18 months1.00%
2 years1.10%
3 years1.20%
4 years1.30%
5 years1.40%
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty: Depends on term:
    • 90 to 365 days — 90 days simple interest
    • 365 days to 18 months —180 days simple interest
    • Up to 2 years — 270 days simple interest
    • More than 2 years — either 2% or a market adjustment, whichever is greater (explained below)

The IRA CD is best for those looking for a retirement account that has a guaranteed rate of return, though the rates aren’t that spectacular. Interest is compounded daily and credited monthly, quarterly or at maturity, depending on the term. Interest earned can either be withdrawn to another account or kept in the CD.

You’ll receive a seven-day grace period when your CD matures and you can either make additional deposits or withdrawals, or renew for another term. Otherwise, your CD will automatically be renewed for the same term at the current advertised APY.

If you have a CD term that’s two years or more, you’ll either pay 2% of the amount withdrawn or a market adjustment. How this works is that the market adjustment is based on how much money OneWest Bank will need to replace in order to replace your CD with another higher cost “replacement CD.” The bank will use a term that is closest (but not longer) to your original CD term.

OneWest will calculate this by taking the difference between your current rate and the replacement CD’s current advertised rate, multiplied by the amount withdrawn, times how much is remaining in your CD term. You could also face IRS penalties if you make withdrawals before you’re 59 1/2 years old, so check with a trusted tax professional to make sure.

You’ll need to head to a local branch or by calling customer service at 1-877-741-9378. Click here to find a location nearest you.

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on OneWest Bank’s secure website

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How OneWest Bank’s IRA CD rates compare

Unfortunately, OneWest Bank’s IRA CDs fall short. Some of the best IRA CD rates out there offer much higher rates and lower opening deposits. All this to say, you’re better off looking elsewhere.

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Overall review of OneWest Bank’s banking products

Other than the low rates, the downfall of OneWest Bank is that most of the their products are only available to Southern California. Even if the rates were more competitive, most U.S. residents won’t be able to access them — all this to say, you’ll want to look at other financial institutions.

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Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Sarah Li Cain
Sarah Li Cain |

Sarah Li Cain is a writer at MagnifyMoney. You can email Sarah Li here

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