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Reviews

Melrose Credit Union Review: Checking, Savings, CD and IRA Rates

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements 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.

Year Established
Total AssetsN/A
LEARN MORE Melrose Credit Union’s secure websiteNCUA Insured

New York-based Melrose Credit Union was established in 1922 as a small storefront serving local residents and small business owners in the Bronx. The headquarters is now in the Briarwood neighborhood in Queens, serving its 20,000-plus membership through that single location and its online banking platform.

Melrose offers members basic checking and savings account options, in addition to various share certificates (CDs), IRA share certificates and traditional and Roth IRAs. Although Melrose Credit Union is based in New York, membership is open to anyone regardless of their residential location, as long as they have a valid government-issued ID, proof of address and Social Security number. However, out-of-state members wishing to open a checking or savings account are required to also open one of the credit union’s share certificates or IRA products.

Membership requires a one-time fee of $1 and a minimum account opening deposit of $25. All account deposits are insured to at least $250,000 by the National Credit Union Administration, and its IRAs are separately insured up to $250,000 as well.

This bank review will cover the rates and terms for its available financial products to help you determine which of its offerings may best meet your needs.

Note:Melrose Credit Union is under a conservatorship. This does not mean that the credit union has closed. According to the NCUA, "A conservatorship means NCUA has assumed control of Melrose Credit Union to ensure its financial stability and safe-and-sound operation. In a conservatorship, NCUA works to address issues related to a credit union’s operations and financial condition while maintaining member services." Members' deposits are protected by NCUA insurance.

Melrose Credit Union’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.10%

Savings

Melrose Credit Union Share Savings Account

2.10%

American Express National Bank High Yield Savings Account

on American Express National Bank’s secure website

Member FDIC

2.10%

CD Rates

Melrose Credit Union 1 Year Share Certificate

2.75%

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

2.35%

CD Rates

Melrose Credit Union 3 Year Share Certificate

2.90%

Synchrony Bank 36 Month CD

on Synchrony Bank’s secure website

Member FDIC

2.70%

CD Rates

Melrose Credit Union 5 Year Share Certificate

3.10%

Goldman Sachs Bank USA High-yield 5 Year CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

Melrose Credit Union’s checking accounts

Melrose Credit Union E-Z Checking Account

Melrose Credit Union’s E-Z Checking Account is a basic checking option with no monthly fees or minimum balance requirements.

APY

Minimum balance amount to Earn APY

0.10%

$500

  • Minimum opening deposit: $25, plus a one-time $1 membership fee
  • Monthly account maintenance fee: None
  • ATM fee: $1 plus any additional fees charged by the bank operator for balance inquiries and transactions at non-CO-OP ATMs
  • ATM fee refund: None
  • Overdraft fee: $30, or $5 if funds are available to be transferred from savings

Melrose Credit Union’s E-Z Checking Account is a great option for individuals who want to avoid having to keep track of balance and deposit amounts in an effort to avoid fees. While there are no general monthly balance requirements to keep the account open, account holders can only earn interest if they maintain a daily balance of at least $500.

This account also comes with free starter checks and the account’s online platform allows users to complete tasks like paying bills, transferring funds and executing direct deposits with ease. Although the credit union welcomes anyone to apply for membership, if you are applying to open its checking account from outside the state of New York, you will be required to also open one of its share certificates (the credit union equivalent of a certificate of deposit) or IRA products.

How to get Melrose Credit Union’s E-Z Checking Account

You have to either apply by mail or in person to become a member and open an account at Melrose Credit Union. To open an account, you’ll need to provide personal information such as your name, address and date of birth, as well as documentation including a valid photo ID, proof of address (such as a utility bill) and your Social Security number. Providing this information to successfully open an account can end up being difficult if you don’t live near the credit union’s headquarters, though. However, you can complete and print out an application on Melrose Credit Union’s website before mailing it to Melrose Credit Union, ATTN: Member Services, 139-30 Queens Blvd, Briarwood, NY 11435.

LEARN MORE Secured

on Melrose Credit Union’s secure website

NCUA Insured

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How Melrose Credit Union’s checking account compares

While we love that Melrose Credit Union’s E-Z Checking Account gives users the peace of mind of basic checking services with no regular fees or balance requirements, there are still better checking account options out there with higher APY rates and added perks like no ATM fees and out-of-network ATM fee reimbursements. The fact that the credit union only has one physical location could be a problem for non-local members wishing to take care of transactions or account issues in person.

Melrose Credit Union’s savings accounts

Melrose Credit Union Basic Share savings account

A basic, no-frills savings account with no fees and minimal opening costs.

APY

Minimum balance amount to Earn APY

0.10%

None

  • Minimum opening deposit: $25, plus a one-time membership fee of $1, or $2 for joint membership
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: $1 plus any additional fees charged by the bank operator for balance inquiries and transactions at non-CO-OP ATMs
  • ATM fee refund: None
  • Overdraft fee: $30

If you’re looking for a basic savings account that will simply provide you with a safe and secure place to store your funds with no fees, but not much more, Melrose’s Share Savings Account may be a good option. While there is no set balance requirement to earn the APY, the ability to earn dividends depends on the deposit amount and interest rate. (FYI, dividends are similar to interest in the credit union industry.)

Although Melrose welcomes anyone to apply for membership, if you are applying to open this savings account from outside the state of New York, you will be required to also open one of its share certificate or IRA products.

In compliance with Federal Reserve Regulation D, Melrose Credit Union limits certain savings account transactions to just six per month. This includes electronic payments, online transfers and automatic payments. Unlimited transactions that aren’t subject to this rule include ATM transactions and transfer payments made to a Melrose Credit Union loan.

How to get Melrose Credit Union’s Basic Share Savings Account

You have to either apply by mail or in person to become a member and open an account at Melrose Credit Union. To open an account, you’ll need to provide personal information such as your name, address and date of birth, as well as documentation including a valid government-issued photo ID, proof of address (such as a utility bill) and your Social Security number. You can complete and print out an application on Melrose Credit Union’s website before mailing it to Melrose Credit Union, ATTN: Member Services, 139-30 Queens Blvd, Briarwood, NY 11435

LEARN MORE Secured

on Melrose Credit Union’s secure website

NCUA Insured

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How Melrose Credit Union’s savings account compares

While we do like that the minimum deposit to open this account is so minimal ($25 is pretty hard to beat), when you look at the account’s APY, you’ll see that you can definitely get much better rates on other savings accounts elsewhere.

Melrose Credit Union’s share certificate rates

Melrose Credit Union share certificates

High rates and various term options make these a great choice.

Term

APY

1 year

2.10%

2 year

2.35%

3 year

2.35%

4 year

2.40%

5 year

2.70%

  • Minimum opening deposit: $5,000
  • Minimum balance to earn APY: $5,000
  • Early withdrawal penalty: For the 1 year certificate, 90 days’ worth of interest on the amount withdrawn plus reduction to the share rate at time of purchase. For the 2  to 5 year certificates, it’s 180 days dividend penalty plus a reduction to share rate at the time of purchase.

A share certificate account is similar to a certificate of deposit (CD), but it is issued by a credit union rather than a bank. Share certificates are federally insured by the National Credit Union Administration (NCUA). Each account is federally insured up to $250,000.

Melrose Credit Union’s share certificate options are available in terms ranging from 12 to 60 months with a minimum opening deposit of $5,000. Its share certificates’ rates have been consistently highlighted as some of the best out there by DepositAccounts.com, another LendingTree company. Dividends on these share certificates are compounded quarterly.

How to get Melrose Credit Union’s share certificates

To purchase one of Melrose Credit Union’s share certificates, you’ll need to either call the credit union at 718-658-9800 (or 800-235-0118), or send an email to melrose@melrosecu.org for a certificate disclosure and application.

LEARN MORE Secured

on Melrose Credit Union’s secure website

NCUA Insured

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How Melrose Credit Union’s share certificates compare

Compared with other CD rates, Melrose Credit Union’s share certificates definitely stand out as competitive, which makes them a great option for people looking for a solid CD equivalent from a credit union. Its minimum deposit requirements also fall in line with many of the best offerings out there.

Melrose Credit Union’s IRA account options

Melrose Credit Union IRA share certificates

Competitive rates make these share certificates a great option to store retirement funds for a specific period of time.

Term

APY

1 year

2.10%

2 year

2.35%

3 year

2.35%

4 year

2.40%

5 year

2.70%

  • Minimum opening deposit: $4,000
  • Minimum balance to earn APY: $4,000
  • Early withdrawal penalty: For the 1 year certificate, 90 days’ worth of interest on the amount withdrawn plus reduction to the share rate at time of purchase. For the 2 to 5 year certificates, it’s 180 days dividend penalty plus a reduction to share rate at the time of purchase.

Melrose Credit Union’s IRA share certificates are a great option for those seeking a safe way to store retirement funds for a set amount of time, all while reaping competitive rates. The credit union’s IRA share certificate rates are virtually the same as its regular share certificate options, though the IRAs require a smaller minimum deposit of $4,000. Similar to the regular certificate options, the IRA share certificates don’t require a specific balance higher than the minimum deposit to earn the APY. Melrose also offers members the option of transferring their quarterly dividend to another share account.

How to get Melrose Credit Union’s IRA share certificates

To get a Melrose Credit Union IRA share certificate, you will need to call or email the credit union at 718-658-9800 or 800-235-0118 or melrose@melrosecu.org for the certificate disclosure and application

LEARN MORE Secured

on Melrose Credit Union’s secure website

NCUA Insured

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How Melrose Credit Union’s IRA share certificate rates compare

As with its standout share certificates offerings, Melrose Credit Union’s IRA share certificate rates are on par with the best IRA CD rates out there, and its minimum deposit requirement falls somewhere in the middle compared with other options with similar rates. Melrose’s IRA share certificates also provide the same tax benefit (and contribution limits) as a traditional IRA. The IRAs are available for both traditional and Roth plans.

As an added bonus, Melrose Credit Union also offers members free certified financial planning to help with retirement and other money-related decisions.

Traditional IRA savings account

A flexible way to save without being taxed until you reach retirement.

APY

Minimum balance amount to Earn APY

0.50%

None

  • Minimum opening deposit: None, though a deposit of any amount is required.
  • Minimum balance to earn APY: None
  • Early withdrawal penalty: 10% additional tax if withdrawing before you reach age 59½.

Melrose Credit Union’s Traditional IRA savings account is a great option for those looking for a flexible and convenient option to save for retirement without being taxed on your contributions until then. This account allows you to contribute any amount up to $5,000 total per year. Melrose Credit Union also offers members free certified financial planning to help with retirement and other money-related decisions. You can also consult with a tax adviser to determine if your contributions are tax-deductible.

In compliance with Federal Reserve Regulation D, Melrose Credit Union limits certain IRA savings account transactions to just six per month. This includes electronic payments, online transfers and automatic payments. Unlimited transactions that aren’t subject to this rule include ATM transactions and transfer payments made to a Melrose Credit Union loan.

LEARN MORE Secured

on Melrose Credit Union’s secure website

NCUA Insured

Roth IRA savings account

APY

Minimum balance amount to Earn APY

0.50%

None

  • Minimum opening deposit: None, though a deposit of any amount is required.
  • Minimum balance to earn APY: None
  • Early withdrawal penalty: 10% additional tax if withdrawing before you reach age 59½.

The credit union’s Roth IRA allows you to reap competitive rates on tax-free earnings while you save for retirement. Since the funds you’re contributing have already been taxed prior to moving them into the account, qualified distributions are exempt from taxes and penalties. A tax adviser may also be able to help you determine if you’re eligible to withdraw funds from your Roth IRA to put toward a first-time home purchase.

How to get Melrose Credit Union’s IRA savings accounts

To open and contribute to one of Melrose Credit Union’s IRA products, you’ll need to speak to a credit union representative either by calling 718-656-9800 or visiting its headquarters in person.

LEARN MORE Secured

on Melrose Credit Union’s secure website

NCUA Insured

Overall review of Melrose Credit Union’s banking products

While it’s hard to beat the absence of regular fees on all of Melrose Credit Union’s financial products, its competitive CD-equivalent share certificate and IRA share certificate rates are what truly make it stand out. At first glance, the fact that out-of-state members need to open one of these products (or one of its IRA offerings) in order to be able to open a checking or savings account might seem like a drawback, but because the checking and savings account don’t offer any perks beyond not having any fees, we say don’t bother opening those unless you’re specifically joining Melrose Credit Union for one of its share certificate products and happen to also need to open one of those additional accounts in general.

However, the fact that you can only apply to join the credit union either by mail or in person is likely to deter many potential members who don’t live in the Queens, N.Y. area. Considering how easy it is to apply to open an account online at other institutions, we won’t blame you if you decide not to bother because of that added hassle alone. Lastly, it’s also important to note that while Melrose Credit Union doesn’t charge a fee on its own ATMs, they are only available in the Queens, N.Y. region where its headquarters is located, which means non-local members will be hit with fees often if they need to make regular cash withdrawals.

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

TAGS:

Advertiser Disclosure

Reviews

Frost Bank Review: Checking, Savings, CD and Money Market Accounts

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements 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.

Year Established1899
Total Assets$31.3B
LEARN MORE Frost Bank’s secure websiteMember FDIC

Frost Bank is a pioneer-era institution that has grown into the third-largest bank in Texas. It was first established in 1868 in San Antonio to help Texans obtain the materials they needed to succeed in the frontier. After surviving hardships like the Great Depression, the bank has grown to about 4,300 employees more than 140 locations.

Frost Bank currently offers checking, savings, money market and CDs for its personal banking customers. To open any of these accounts, you’ll need to have proof of a Texas address, though you will still be able to keep your account open if you move out of state. Here we’ll break down each product to help you determine if one of them could be the right account for you.

Frost Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.25%

Savings

Frost Bank Savings

2.10%

American Express National Bank High Yield Savings Account

on American Express National Bank’s secure website

Member FDIC

1.75%

CD Rates

Frost Bank 12 Month CD

2.75%

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

0.25%

CD Rates

Frost Bank 30 Day CD

2.90%

Synchrony Bank 36 Month CD

on Synchrony Bank’s secure website

Member FDIC

0.25%

CD Rates

Frost Bank 60 Day CD

3.10%

Goldman Sachs Bank USA High-yield 5 Year CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

Frost Bank checking account options

Personal Checking

Frost Bank’s lone checking account option offers a miniscule amount of interest for a pretty high minimum balance amount.
APYMinimum Balance to Earn APY
0.05%
$5,000
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $8 ($4 for students under age 25); can be waived with a monthly direct deposit of at least $100, by maintaining a $1,000 balance, or by maintaining a combined balance of $5,000 among all Frost Bank personal accounts
  • ATM fee: None on Frost Bank ATMs; $2 on out-of-network ATMs
  • ATM fee refund: Frost Bank occasionally refunds ATM fees for out-of-state customers; contact the bank for further details
  • Overdraft fee: $34 on amounts over $5, up to a maximum of $170 per day

This account earns a small amount of interest on balances of $5,000 or more, which is compounded monthly. And while the monthly fee is fairly easy to avoid as a working adult, it could prove to be more challenging for students — so the lowered fee for students is a nice touch for those who may not be able to afford it. The account also offers:

  • Mobile banking access via an iPhone or Android app
  • Mobile check deposit of up to $25,000 daily
  • Free overdraft protection by linking the account to another Frost Bank account to cover overdraft amounts
  • Unlimited transactions and check writing
  • Unlimited online and mobile bill pay
  • Unlimited online and mobile transfers to other financial institutions
  • Frost Bank debit card
  • Online statement delivery

How to get Frost Bank’s checking account

Texas residents can open an account either online, via the app, or in person. To do so, you’ll need a Texas state address, a government-issued ID such as a driver’s license, as well as your Social Security number.

LEARN MORE Secured

on Frost Bank’s secure website

Member FDIC

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How Frost Bank’s checking account compares

With such a low interest rate and high minimum balance to even earn it, we give this account a big “Why bother?” Its monthly fees are fairly easy to avoid, so we’ll give Frost Bank that, but there are so many truly free accounts out there that offer the ability to earn better rates on much lower balances, along with other perks like no ATM fees from their end, and ATM fee refunds to boot. We urge you to shop around, possibly considering those on our list of the best online checking accounts.

Frost Bank’s savings account options

Personal Savings account

The bank’s savings account offers a low interest rate on all balances.
APYMinimum Balance to Earn APY
0.25%
$0.01
  • Minimum opening deposit: $50
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $3.50; can be waived if a minimum monthly balance of $500 is maintained
  • ATM fee: None on Frost Bank ATMs; $2 on out-of-network ATMs
  • ATM fee refund: Frost Bank occasionally refunds ATM fees for out-of-state customers; contact the bank for further details
  • Overdraft fee: $34 on amounts over $5, up to a maximum of $170 per day

This account earns a small amount of interest on all balances, which is paid quarterly. As with the checking account, its low monthly service fee is fairly easy to avoid with a small minimum monthly balance requirement. You can make online transfers into and out of the account with ease, and it can be used as overdraft protection to cover your checking account at no charge. Federal Reserve Regulation D normally limits certain transfers and withdrawals up to six per month, but make note of the fact that this account only permits you to make two free ones per month.

LEARN MORE Secured

on Frost Bank’s secure website

Member FDIC

Health Savings account

This savings account is intended to solely cover medical expenses.
APYMinimum Balance to Earn APY
0.05%
$0.01
  • Minimum opening deposit: $50
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $3 without imaged checks or $5 with imaged checks; can be waived if a minimum monthly balance of $3,000 is maintained
  • ATM fee: None on Frost Bank ATMs; $2 on out-of-network ATMs
  • ATM fee refund: None
  • Overdraft fee: $34

This health savings account allows you to earn a small amount of interest on all money you put in it. You may be eligible to open this account if you fit all of the following criteria:

  • You’re covered under a high-deductible health plan (minimum of $1,300 if you’re single, and $2,600 for a family)
  • You are not covered by any other health plan
  • You are not entitled to Medicare benefits
  • You are not a dependent on another person’s tax return.

While its monthly fee is fairly low, the minimum balance to be able to waive it is on the higher end. Contributions to this account could be tax deductible, though you should consult a tax advisor or the IRS to make sure. You can contribute up to $3,400 annually if you’re single, or $6,750 for a family. Although Federal Reserve Regulation D normally limits certain withdrawals and transfers up to six per month on savings account, this account permits three free check withdrawals every month, then charges $5 on each one thereafter. Unused balances on this account automatically carry over from year to year, and transfers made from your checking account are counted toward your current year contribution limits.

How to get Frost Bank’s savings accounts

To open one of Frost Bank’s savings accounts, you can call the bank at 866-376-7889 or visit a bank location in person. Be sure you’re prepared with your minimum opening deposit, proof of a Texas state address, government-issued ID and Social Security number.

LEARN MORE Secured

on Frost Bank’s secure website

Member FDIC

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How Frost Bank’s savings accounts compare

You can look at the interest rates of these accounts alone to give them a hard pass. Their monthly fees, and the requirements to waive them, make them lose points as well. While the bank does have easy-to-navigate online and mobile banking platforms, that just isn’t enough to make these accounts stack up against better offerings out there. Consider one of the free accounts on our list of the best online savings accounts, many of which offer higher rates and no fees whatsoever.

Frost Bank’s CD rates

Personal CDs

Frost Bank’s CDs are available in fairly short term lengths with pretty mediocre rates.
TermAPYMinimum Opening Deposit
14 days0.25%
$100,000
30 days0.25%
$100,000
60 days0.25%
$100,000
90 days1.20%
$1,000
90 days1.35%
$100,000
180 days1.45%
$1,000
180 days1.55%
$100,000
12 months1.75%
$1,000
12 months2.00%
$100,000
24 months2.30%
$1,000
24 months2.50%
$100,000
  • Minimum opening deposit: Varies; see table
  • Minimum balance amount to earn APY: Varies; see table
  • Early withdrawal penalty: For certificates issued for less than 30 days, it’s the interest that the withdrawn portion has earned, but no less than seven days of interest; for certificates with terms in length from 30 days to 1 year, it’s 30 days’ interest; for certificates issued for more than 1 year, it’s 90 days’ interest

A $1,000 minimum opening deposit is pretty standard as far as CDs go, but the jump to $100,000 is pretty drastic, especially since the rate increase doesn’t exactly match that jump. While most of these rates do beat out national averages, there are still better offerings out there offering higher rates for lower amounts on deposit.

How to get Frost Bank’s CDs

To be able to open a Frost Bank CD, you’ll need to call the bank at 866-376-7889, or visit a bank location in person. Be sure to be prepared to begin by having your opening deposit, government-issued ID, proof of Texas state address and Social Security number handy.

LEARN MORE Secured

on Frost Bank’s secure website

Member FDIC

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How Frost Bank’s CD rates compare

While the rates on these CDs can be described as competitive, there are definitely better rates to be had out there, many of which can be applied to much lower balances than $100,000. We urge you to shop around and possibly consider one of the products on our list of the best CD rates to ensure you truly get the best bang for your buck.

Frost Bank’s money market account options

Frost Bank’s money market allows you to earn interest at several different tiers.
APYMinimum Balance to Earn APY
0.50%
$0.01
0.50%
$10,000
0.55%
$25,000
0.60%
$50,000
0.95%
$100,000
1.35%
$250,000
  • Minimum opening deposit: $50
  • Minimum balance to earn APY: Varies; see table
  • Monthly account maintenance fee: $15; can be waived if minimum monthly balance of $15,000 is maintained
  • ATM fee: None on Frost Bank ATMs; $2 on out-of-network ATMs
  • ATM fee refund: Frost Bank occasionally refunds ATM fees for out-of-state customers; contact the bank for further details
  • Overdraft fee: $34 on amounts over $5, up to a maximum of $170 per day

Although this account offers a pretty low opening deposit requirement, the balance requirement to avoid the monthly fee is rather hefty. You can earn interest on any amount (paid monthly on this account), but the rates don’t really start to even slightly creep up until your balance reaches six figures. The account comes with free imaged checks, and it’s available to be used as overdraft protection to cover your checking account. As a savings account, it is subject to Federal Reserve Regulation D, which limits certain withdrawals and transfers up to six per month.

How to get Frost Bank’s money market account

As with the savings accounts and CDs, you’ll have to either call the bank at 866-376-7889 or visit a bank location in person to be able to open a money market account. For either method, be sure you’re ready with your opening deposit, proof of Texas state address, government-issued ID and Social Security number.

LEARN MORE Secured

on Frost Bank’s secure website

Member FDIC

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How Frost Bank’s money market account compares

The bank boasts competitive rates on its accounts, but they really don’t even come close to the ones on our list of the best money market rates. Not only that, but the highest rates it offers only apply to balances of over $100,000, and you have to be able to maintain a large monthly balance to be able to avoid the monthly fee. Needless to say, this account isn’t worth your while; do your due diligence in shopping around, possibly considering one of the accounts on our list instead.

Overall review of Frost Bank’s banking products

Give most of Frost Bank’s personal accounts a pass. With the exception of some of its CDs, all of the accounts seem to come with some sort of catch — primarily high minimum balance requirements to avoid the monthly fees — for what are mostly mediocre rates. Not only that, but the fact that you can’t open accounts other than the checking account online is likely to be an inconvenience for people who don’t live near a branch.

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

TAGS:

Advertiser Disclosure

Reviews

NEFCU Review: Checking, Savings, CD, Money Market and IRA Accounts

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements 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.

Year Established1938
Total Assets$3.1B
LEARN MORE NEFCU’s secure websiteNCUA Insured

NEFCU was established in 1938 when a group of school employees joined together to form the Valley Stream Teachers Federal Credit Union, pooling their savings and borrowing from one another to meet their financial needs. The Westbury, N.Y.-based credit union adopted its current name in 1981, and has since grown to more than 350 employees and nearly 200,000 members.

Membership at NEFCU is open to customers who who live, work, or attend school in Nassau or Suffolk counties, with the exception of the Villages of East Hampton, Southampton and the Town of Shelter Island. To establish membership and open any other personal deposit accounts, customers must open a Share Savings account with a minimum deposit of $5.The credit union currently offers checking, savings, CD, IRA and money market accounts for its personal banking products. Read on to determine if one of these products could be the right account for you.

NEFCU’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.30%

Savings

NEFCU Share Account

2.10%

American Express National Bank High Yield Savings Account

on American Express National Bank’s secure website

Member FDIC

2.00%

CD Rates

NEFCU 1 Year Certificate

2.75%

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

2.50%

CD Rates

NEFCU 3 Year Certificate

2.90%

Synchrony Bank 36 Month CD

on Synchrony Bank’s secure website

Member FDIC

3.00%

CD Rates

NEFCU 5 Year Certificate

3.10%

Goldman Sachs Bank USA High-yield 5 Year CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

NEFCU’s checking account option

Go Green Checking account

This account pays a decent bit of interest at three different tiers.
APYMinimum Balance to Earn APY
1.00%$0.01 (rate drops to 0.50% on balances above $25,000)
2.00%$0.01 (rate drops to 0.50% on balances above $25,000)
3.00%$0.01 (rate drops to 0.50% on balances above $25,000)
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None at Allpoint ATMs; first eight out-of-network ATM transactions are free, then $1 each
  • ATM fee refund: Up to $15 per month on non-NEFCU ATMs
  • Overdraft fee: $30, unless you have a debit card and the overdraft is pulled from a safety line or savings account, in which case, it’s $3. If you have courtesy pay enabled, the fee is $10.

This account allows you to earn a decent amount of interest at three different tier levels on any amount up to $25,000. The tier level you qualify for depends on your overall relationship with the credit union. You’ll need a deposit and loan balance of more than $25,000 to get the 2% APR, and the loan balance itself needs to be more than $25,000 to get the 3% rate. This free account also comes with online and mobile banking services, Voice Banking with Amazon and Google devices and a Visa debit card. As an added bonus, you can get up to $15 per month in ATM fee refunds.

How to get NEFCU’s checking account

Once you’ve proven how you qualify for membership and applied to open your Share Savings account with a minimum deposit of $5, you can open this checking account online or in person. To do so, you’ll need to have your government-issued ID and Social Security number handy.

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How NEFCU’s checking account compares

If you’ve determined you qualify for the second or third rate tiers on this account, it’s definitely worth your while. Between that and the lack of fees and balance requirements, easy-to-navigate online interface and the ability to get ATM fee refunds, you’ve really got a winner here that easily stacks up against those on our list of the best online checking accounts.

NEFCU’s savings account option

Share Savings account

This account is required to open any of the credit union’s other personal accounts.
APYMinimum Balance to Earn APY
0.30% $20.28
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $20.28
  • Monthly account maintenance fee: None
  • ATM fee: None on Allpoint ATMs; first eight out-of-network ATM transactions are free, then $1 each thereafter
  • ATM fee refund: None
  • Overdraft fee: $30, unless you have a debit card and the overdraft is pulled from a safety line or savings account, in which case, it’s $3. If you have courtesy pay enabled, the fee is $10.

This savings account is your gateway to opening any other NEFCU personal accounts, as your deposit of $5 represents your share in the credit union. Other than an OK rate and access to mobile and online banking products, this savings account doesn’t offer much else. As a savings account, it is subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month. Transactions beyond that will face a $10 fee.

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Holiday, Camp or Vacation account

This account allows you to save and designate funds for a special occasion.
APYMinimum Balance to Earn APY
0.30%$20.28
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $20.28
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This sub-savings account is a great way to sock away funds for a special purchase or occasion, earning interest all the while. The fact that it doesn’t come with ATM access makes it easy to avoid touching this money before you intend to. As a savings account, this is subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month. Additional transactions will include a $10 fee.

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Tuition Builder

This higher-yielding account is designed to put money away for your education.
APYMinimum Balance to Earn APY
1.19% $100
  • 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 interest-bearing account is meant to serve as a savings fund for expenses such as college tuition and room and board. It comes with a low opening deposit requirement, as well as mobile and online banking capabilities. It can only be accessed from June 1-20 and Dec. 1-30 without otherwise incurring a penalty. As a savings account, this one is subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month. More than that, and you’ll pay a $10 fee per transaction.

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Dollar Dog Kids account

This account can be opened for a child at any age up to 10 years old, after which it will convert into an Elements Teen Club account.
APYMinimum Balance to Earn APY
1.00%$20.28
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $20.28
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This interest-bearing youth account allows young customers easy access to their money at branch locations, as well as through the credit union’s online and mobile banking platforms. It comes with a free membership card, a complimentary gift at opening and with every subsequent deposit and a fun, an age-appropriate quarterly newsletter. As a savings account, this is subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month. More than that, and you’ll pay a $10 fee.

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Elements Teen Club account

This account can be opened for children ages 11 to 17, after which it will turn into a Share Savings account.
APYMinimum Balance to Earn APY
1.00% $20.28
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $20.28
  • Monthly account maintenance fee: None
  • ATM fee: If account holder also has a Go Green Checking account with a debit card, no fees on Allpoint ATMs; first eight out-of-network ATM transactions are free, then $1 each thereafter
  • ATM fee refund: None
  • Overdraft fee: $30, unless you have a debit card and the overdraft is pulled from a safety line or savings account, in which case, it’s $3. If you have courtesy pay enabled, the fee is $10.

The credit union’s teen account is very similar to the kids’ account as far as its requirements, interest rates and perks are concerned. In addition to the characteristics listed above, the teen account also comes with the ability to open a Go Green Checking account with a debit card. As a savings account, this one is subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month. After that, there’s a $10 fee.

How to get NEFCU’s savings accounts

NEFCU’s Share Savings account can be opened online or in person once you’ve established that you qualify for membership; the Holiday, Camp and Vacation accounts can only be opened over the phone or at a branch location. You’ll just need to provide your Social Security number and government-issued ID. The youth accounts and Tuition Builder must be opened in person with those documents from a parent or guardian, who must serve as a joint owner on the Dollar Dog account, or on the Go Green Checking account with debit card for kids under age 17.

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How NEFCU’s savings accounts compare

Rates-wise, none of these accounts really stand up to those on our list of the best online savings accounts. While it wouldn’t hurt you to open any of them if you’ve become a member of the credit union for one of its other products, we wouldn’t seek out NEFCU for any of these products alone. Consider one of the accounts on our list instead to get the most bang for your buck.

NEFCU’s CD rates

Certificates

The credit union’s CDs offer decent rates on its longer term lengths.
TermAPY
3 months0.30%
6 months1.25%
7 months2.00%
1 year2.00%
18 month penalty-free2.45%
2 years2.15%
3 years2.50%
4 years2.75%
5 years3.00%
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty: On maturities of less than 1 year at account opening or account renewal, it’s 90 days’ worth of dividends on the amount withdrawn; on maturities of one year to less than three years at account opening or account renewal, it’s 180 days’ worth of dividends on the amount withdrawn; on maturities of 3 years or more at account opening or account renewal, it’s 270 days’ worth of dividends on the amount withdrawn.

These CDs are pretty run-of-the-mill as far as their opening deposit requirements and early withdrawal penalties are concerned. They renew automatically once the term is completed, but please note that the 7 month term will renew to only 6 months.

How to get NEFCU’s CDs

Once you’ve determined that you qualify to become a member and have opened a Share Savings account with a minimum deposit of $5, you can open a CD online or in person. You’ll need your Social Security number and valid government-issued ID to do so.

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How NEFCU’s CD rates compare

Compared to the CDs on our list of the best available CD rates, NEFCU’s rates are pretty mediocre. You can easily find CDs with the same requirements and penalties that offer a much more competitive rate. Shop around or consider one on our list instead.

NEFCU’s money market account option

Money Market account

The credit union’s money market account allows account holders to earn interest at five different tier levels.
APYMinimum Balance to Earn APY
0.40%$2,500
0.45%$25,000
1.65%$50,000
1.85%$100,000
2.00%$250,000
  • Minimum opening deposit: $2,500
  • Minimum balance to earn APY: Varies; see table
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

NEFCU’s money market account allows you to earn a small amount of interest at five different tier levels, while offering the same online and mobile banking capabilities as its other products. As a savings account, this one is subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month. After that, you’ll pay a $10 fee per transaction.

How to get NEFCU’S money market account

As with most of the credit union’s other personal banking products, you can open its money market account online after proving you qualify to become a member and opening its Share Savings account with a minimum deposit of $5. To do so, you’ll need to provide your government-issued ID and Social Security number, as well as other personal details.

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How NEFCU’s money market account compares

When comparing the rates on this account to those on our list of the best money market account rates, NEFCU’s account doesn’t even come close. NEFCU also requires a sky-high minimum balance requirement to earn the highest rate tier. Some of the accounts on our list offer twice these rates on much lower balance amounts, so we strongly advise considering one of those instead.

NEFCU’s IRA options

IRA CD rates

IRA certificates

The same CDs are available to open within an IRA with a lower opening deposit.
TermAPY
3 months0.30%
6 months1.25%
7 months2.00%
1 year2.00%
18 month penalty-free2.45%
2 years2.15%
3 years2.50%
4 years2.75%
5 years3.00%
  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: On maturities of less than 1 year at account opening or account renewal, it’s 90 days’ worth of dividends on the amount withdrawn; on maturities of one year to less than three years at account opening or account renewal, it’s 180 days’ worth of dividends on the amount withdrawn; on maturities of 3 years or more at account opening or account renewal, it’s 270 days’ worth of dividends on the amount withdrawn.

These IRA CDs are virtually the same as the regular CDs, with the exception of the fact they require a lower opening deposit ($500). This, along with the early withdrawal penalty, are pretty standard as far as IRA CDs are concerned. If you open a 1 year certificate, you’ll have the opportunity to bump up the rate if it increases at one point during your term.

How to get NEFCU’s IRA CDs

Once you’ve determined that you qualify to become a credit union member and have opened your Share Savings account with a minimum deposit of $5, you can open an IRA CD online through the IRA Service Center. Just be sure to have your Social Security number and government-issued ID handy to be able to do so.

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How NEFCU’s IRA CD rates compare

The opening deposit requirements and early withdrawal penalties fare pretty similarly in comparison to the accounts on our list of the best IRA CD rates, but that’s where the similarities end — NEFCU’s IRA CD rates don’t even come close. You’ll want to do your due diligence and take your time shopping around when it comes to saving for your retirement, so consider one of the CDs on our list instead.

Liquid Savers IRA

This savings account is available to opened as a traditional or Roth IRA.
APYMinimum Balance to Earn APY
1.50% $4.09
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $4.09
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This is NEFCU’s IRA savings account, which can be opened as a traditional or Roth IRA. As a savings account, this one is subject to Federal Reserve Regulation D, which limits certain withdrawals and transactions to six per month. After that, there’s a $10 fee.

How to get NEFCU’s IRA savings account

Just like with the IRA CDs, once you’ve determined that you qualify to become an NEFCU member and have opened your Share Savings account with a minimum deposit of $5, you can open an IRA CD online through the IRA Service Center. You’ll need your government-issued ID and Social Security number to do so.

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Overall review of NEFCU’s banking products

NEFCU’s checking account pays competitive rates, but beyond that, this credit union’s deposit accounts don’t come close to beating out the competition. But even with the checking account, you’ll want to make sure you qualify for those special relationship-based rates after becoming a member. If it turns out that you don’t, it’s safe to say we give all of these accounts a hard pass.

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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