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

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Updated on Tuesday, September 1, 2020

Allegacy Federal Credit Union’s checking account options

SmartBalance Checking

This entry-level “checking” account doesn’t allow users to write checks.
APYMinimum Balance to Earn APY
0.01%$0.01
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $4.95 (can be waived with a direct deposit)
  • ATM fee: $1 for non-Allegacy-owned ATMs
  • ATM fee refund: None
  • Overdraft fee: $0

SmartBalance Checking is a unique account in that even though there is “Checking” in the name, customers aren’t allowed to write physical checks. The account does provide “checkless checking” services, which includes a Visa Check Card that customers can use for purchases and withdrawals.The account has a monthly fee that can be waived with direct deposit. Additional provided features include digital services, such as mobile banking and text alerts, and no delays or hold times on direct deposits. There are no overdraft fees; instead, transactions that would exceed your balance are declined.

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SmartRate Checking

SmartRate Checking is Allegacy Federal Credit Union’s most popular account.
APYMinimum Balance to Earn APY
0.50%$0.01 (with qualified transactions)
0.10%$25,000
*A lower APY will be applied if you don’t meet the qualifications for the rates above.
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: $1 for non-Allegacy-owned ATMs
  • ATM fee refund: Up to $25 per cycle
  • Overdraft fee: $34

SmartRate Checking is Allegacy Federal Credit Union’s flagship checking account, providing a wide range of in-demand checking account features for no monthly fee. In addition to the benefits offered by the entry-level SmartBalance Checking account, such as mobile banking, text alerts and no holds on direct deposits, SmartRate Checking refunds up to $25 in ATM fees per cycle, offers overdraft protection and pays premium dividend rates for customers that sign up for eStatements, have 10 or more check card transactions per cycle and receive at least one direct deposit per cycle.

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Preferred Checking

This account has been eclipsed by the more popular SmartRate Checking account.
APYMinimum Balance to Earn APY
0.05%$0.01
0.05%$2,500
0.05%$10,000
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $3; $0 with $250 daily balance
  • ATM fee: $1 for non-Allegacy-owned ATMs
  • ATM fee refund: None
  • Overdraft fee: $34

Preferred Checking offers three interest rate tiers, with deposits of at least $10,000 earning the highest interest rate. However, the rate paid is well below the top rate available on the credit union’s sister account, SmartRate Checking. This account also requires a $250 balance to avoid a monthly fee.Feature-wise, the account does offer free checks when you sign up for direct deposit. Beyond that, it offers benefits you can find in the credit union’s other checking accounts, including mobile banking and text alerts and overdraft protection, although you’ll still pay an overdraft fee.

How to get Allegacy Federal Credit Union’s checking accounts

You can open all of Allegacy Federal Credit Union’s checking accounts online, although membership in the credit union is required first. You’ll need a funding source, your Social Security number and a valid form of ID, such as a driver’s license, state ID, passport or military ID.

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How Allegacy Federal Credit Union’s checking accounts compare

All of Allegacy Federal Credit Union’s checking accounts pay interest, and it’s easy to avoid the monthly fees on the accounts that charge them. However, the rates paid are low, consistently falling below both the national average and the best available national checking rates. For most customers, the SmartRate Checking account is the standout option, requiring no minimum deposit, charging no monthly fees, refunding certain ATM fees and paying the highest available checking rate.

Allegacy Federal Credit Union’s savings account options

Daily Access Savings account

This entry-level savings account has no monthly fee.
APYMinimum Balance to Earn APY
0.05%$0.01
0.05%$2,500
0.05%$5,000
0.05%$10,000
0.05%$25,000
  • Minimum opening deposit: $5
  • Monthly account maintenance fee: $0
  • ATM fee: $1 for non-Allegacy-owned ATMs
  • ATM fee refund: None
  • Overdraft fee: $34

Daily Access Savings is a no-fee, low-minimum savings account that provides ATM access and various digital services, including mobile banking, eStatements, text alerts and WebBanking. The same interest rate is paid regardless of your balance, and dividends compound daily. While in-person withdrawals are unlimited, certain transactions, including pre-authorized or telephonic withdrawals and those by check, draft, or debit card are limited to six per month per Regulation D. Excess transactions are hit with a $3 per transaction fee imposed by the credit union.

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AllHealth Wellness Savings account

This savings account pays rewards based on your number of health club visits.
APYClub Visits
0.10%0-3
0.75%4-7
0.85%8-11
1.05%12+
  • Minimum opening deposit: $5
  • Monthly account maintenance fee: $0
  • ATM fee: $1 for non-Allegacy-owned ATMs
  • ATM fee refund: None
  • Overdraft fee: $34

For the most part, the AllHealth Wellness Savings account is just like the Daily Access Savings account. Both accounts have the same small opening deposit requirement, no monthly fees and the same ATM fee structure. However, the interest rate paid on balances in the AllHealth Wellness Savings account varies based on the number of visits a customer makes to the YMCA of Northwest North Carolina and/or the UNC Greensboro Leonard J. Kaplan Center for Wellness. Top rates are paid for customers making at least 12 such health club visits per month. As with the credit union’s regular savings account, in-person withdrawals are unlimited, but online transactions are limited to six per month. Excess transactions carry a $3 per transaction fee from the credit union.

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Health Savings Account

This account is a standard HSA, requiring enrollment in a high-deductible health plan to participate.
APYMinimum Balance to Earn APY
0.05%$0.01
0.10%$2,500
0.15%$5,000
0.20%$10,000
0.20%$25,000
  • Minimum opening deposit: $5
  • Monthly account maintenance fee: $0
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $34

Allegacy Federal Credit Union’s HSA has a small opening deposit and no monthly maintenance fee. Interest is paid in five tiers, with all balances earning some interest and the best rates being paid on balances of $25,000 or more. There is no ATM access with this account, although it does come with a debit card that can be used to pay qualifying medical expenses. Automated payroll deposit is available. Contributions are made on a pretax basis, and distributions for qualified medical expenses are also tax-free.

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Vacation Club Savings account

This account limits withdrawals to one per year, just in time to enjoy spring and summer holidays.
APYMinimum Balance to Earn APY
0.05%$0.01
0.10%$2,000
0.10%$100,000
  • Minimum opening deposit: $10
  • Monthly account maintenance fee: $0
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $34
The Vacation Club Savings account at Allegacy Federal Credit Union has a $10 minimum opening requirement and no monthly fee. The account makes distributions once per year, every April 1. Withdrawals throughout the rest of the year are restricted, and there is no ATM access with this account. As with all of the credit union’s accounts, Vacation Club account holders have digital access to the account.

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Holiday Club Savings account

This account is designed to encourage savings for year-end celebrating and gift-giving.
APYMinimum Balance to Earn APY
0.05%$0.01
0.10%$2,000
0.10%$100,000
  • Minimum opening deposit: $10
  • Monthly account maintenance fee: $0
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $34

The Holiday Club Savings account is a very close sibling to the Vacation Club Savings account at Allegacy Federal Credit Union. Both accounts have a $10 minimum opening requirement and no monthly fee. The Holiday Club Savings account makes its once-annual distribution every Oct. 1. The account is ineligible for access during the remainder of the year. There is no ATM access with this account, but it does provide the same digital access as the credit union’s other accounts.

How to get Allegacy Federal Credit Union’s savings accounts

You can open all of Allegacy Federal Credit Union’s savings accounts online. You’ll need a funding source, your Social Security number and a valid form of ID, such as a driver’s license, state ID, passport or military ID. Membership at the credit union, which can be established by opening a Daily Access Savings or an AllHealth Wellness Savings account, is required to open other accounts.

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How Allegacy Federal Credit Union’s savings accounts compare

Allegacy Federal Credit Union offers an interesting lineup of savings accounts. The credit union only has one true standard savings account, but it also offers a health savings account, two club accounts and the unique AllHealth Wellness Savings account, which dramatically increases its APY depending on the health club activities of members. Rates on most accounts are subpar, falling below the national averages. However, the top tier of the AllHealth Wellness Savings account pays a very high rate that’s not quite competitive with the best available savings accounts but still handily trumps the amount paid by the average savings account.

Allegacy Federal Credit Union’s CD account options

Certificates (CDs)

Allegacy Federal Credit Union offers a wide range of CD options, with tiered payouts for each maturity.
APYMinimum Balance to Earn APYTerm
0.10%$0.013 months
0.10%$10,0003 months
0.10%$50,0003 months
0.10%$100,0003 months
0.10%$250,0003 months
0.25%$0.016 months
0.25%$10,0006 months
0.25%$50,0006 months
0.25%$100,0006 months
0.25%$250,0006 months
0.30%$0.019 months
0.30%$10,0009 months
0.30%$50,0009 months
0.35%$100,0009 months
0.35%$250,0009 months
0.35%$0.0112 months
0.35%$10,00012 months
0.35%$50,00012 months
0.40%$100,00012 months
0.50%$250,00012 months
0.35%$0.0118 months
0.35%$10,00018 months
0.40%$50,00018 months
0.45%$100,00018 months
0.55%$250,00018 months
0.40%$0.012 years
0.40%$10,0002 years
0.45%$50,0002 years
0.50%$100,0002 years
0.60%$250,0002 years
0.40%$0.013 years
0.40%$10,0003 years
0.45%$50,0003 years
0.50%$100,0003 years
0.60%$250,0003 years
0.40%$0.014 years
0.40%$10,0004 years
0.45%$50,0004 years
0.50%$100,0004 years
0.60%$250,0004 years
0.40%$0.015 years
0.40%$10,0005 years
0.45%$50,0005 years
0.50%$100,0005 years
0.60%$250,0005 years
  • Minimum balance to open account: $500
  • Minimum balance to earn APY: $0.01 to $250,000
  • Early withdrawal penalty: 90 days’ dividends on terms of 12 months or less; 180 days’ dividends on terms between 12 and 24 months; 360 days’ dividends on terms longer than 24 months
Certificates at Allegacy Federal Credit Union span a wide range of maturities, from 3 months to 5 years. The minimum to open a CD is $500, but larger deposits earn higher yields. Each maturity pays out across five tiers, with deposits of $250,000 garnering the best APY. There are no holds on deposits, including payroll deposits, and all CD accounts have digital access via online and mobile banking, text alerts and eStatements. All CDs are also auto-renewable.

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Mortgage Saver Certificate (CDs)

This certificate is another specialty CD, designed to appeal to the needs of homeowners.
APYMinimum Balance to Earn APYTerm
0%$0.0160 months
  • Minimum balance to open account: $50
  • Minimum balance to earn APY: $0.01
  • Early withdrawal penalty: 360 days’ dividends; no penalty after 12 months with a $2,500+ balance and mortgage preapproval through Allegacy
The Mortgage Saver Certificate is a special, 60 month CD designed to help customers save up for the down payment on a home. The CD has a very low opening balance requirement, and it can be added to at any time, although amounts over $50,000 do not earn dividends. While the term is 5 years, customers can withdraw money without penalty after 12 months if they have an account balance of at least $2,500 and they have been preapproved for an Allegacy mortgage on a primary residence. Additionally, customers that close on a mortgage through Allegacy qualify for a $500 bonus toward closing costs.

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Online-Only Certificate (CDs)

This pays a premium rate, but you can only get it online.
APYMinimum Balance to Earn APYTerm
0.45%$1,00024 months
  • Minimum balance to open account: $1,000
  • Minimum balance to earn APY: $1,000
  • Early withdrawal penalty: 180 days’ dividends

The online-only CD at Allegacy Federal Credit Union is a special, high-paying CD with a single, 24 month term. As the name suggests, this CD can only be opened online and is not available in a branch. The investment minimum is double that of the credit union’s regular CDs, but they share the same early withdrawal penalty schedule.

How to get Allegacy Federal Credit Union’s CD accounts

All of Allegacy Federal Credit Union’s CDs can be opened online, and for the online-only CD, that is the only option. You can open a CD account online in about 10 minutes with your Social Security number, U.S. citizenship/resident alien status, a state ID, passport, driver’s license or military ID, along with a way to fund the account. As with the credit union’s other accounts, you must be a member before you can open a CD account.

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How Allegacy Federal Credit Union’s CD accounts compare

Allegacy Federal Credit Union is to be commended for their extensive line of CD products. Traditional CDs run from 3 months to 5 years and have multiple income tiers, with higher deposits garnering good yields. Beyond that, the credit union has specialty CDs that appeal to first-time homebuyers and yield seekers. Overall, rates are good, topping the national averages in most cases. However, yields don’t reach the level of the best CD rates available in the nation.

Allegacy Federal Credit Union’s money market account options

Money Market account

This is a straightforward account with check-writing capabilities and no fees.
APYMinimum Balance to Earn APY
0.20%$2,500
0.20%$25,000
0.25%$50,000
0.35%$100,000
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $34

Customers looking for a higher yield than a traditional savings account might consider the Money Market account at Allegacy Federal Credit Union. Interest is paid across five tiers, with balances of at least $100,000 earning the highest interest. Dividends are compounded and paid monthly. There is no ATM access with this account, but customers can use checks to access their money up to six times per month, per Regulation D. Excess transactions incur a $3 fee each from the credit union. The Money Market account comes with the same digital access as other Allegacy Federal Credit Union accounts, including text alerts, online and mobile banking and eStatements.

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High-Tier Money Market account

The High-Tier Money Market requires high balances to earn its premium interest rates.
APYMinimum Balance to Earn APY
0.05%$0.01
0.35%$100,000
0.45%$250,000
0.50%$500,000
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $34

The High-Tier Money Market technically has no opening deposit requirement, but you’ll need at least $100,000 to earn any interest. Best yields come with deposits of at least $500,000. Beyond the APY, the High-Tier Money Market functions just like the credit union’s regular Money Market account. There’s no ATM access with this account, but customers can write up to six checks per month to access their funds, per Regulation D. Additional transactions are charged a $3 fee by the credit union.

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

The regular Money Market account can be opened online, but you’ll have to visit a banker to open the High-Tier Money Market account. You can open a regular Money Market account online in about 10 minutes. You’ll be asked for various personal and financial information, including your Social Security number, U.S. citizenship or resident alien status and a valid ID, like a passport, driver’s license, military or state ID. To fund your account, you’ll also need bank information or a credit or debit card. No matter where you open your account, you’ll need to be a member of the credit union.

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How Allegacy Federal Credit Union’s money market accounts compare

Allegacy Federal Credit Union excels when it comes to money market accounts. Though only offering two accounts, they both come with no fees and no minimums. Although higher balances are required to earn interest, the rates paid are high. The top tiers of the entry-level Money Market account pay more than double the national average. The High-Tier Money Market pays rates that directly compete with the best money market accounts in the country.

Allegacy Federal Credit Union’s IRA options

IRA Savings

The IRA Savings account is a way to earn interest on loose funds.
APYMinimum Balance to Earn APY
0.15%$0.01
0.15%$2,500
0.15%$5,000
0.15%$10,000
0.15%$25,000
  • Minimum opening deposit: $5
  • Monthly account maintenance fee: $0
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $34

The IRA Savings account has a small opening deposit and no monthly fee. It’s a place to park IRA money that is not invested in other options, such as CDs. The account pays interest in five tiers, although there’s currently no increase in APY for higher balances. However, the current rate is much better than the base rate in the credit union’s Daily Access Savings account. As an IRA, this account doesn’t come with an ATM card.

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Certificate IRA

Rates for CD IRAs at Allegacy Federal Credit Union are higher than those paid on the credit union’s regular CDs.
APYMinimum Balance to Earn APYTerm
0.25%$0.013 months
0.25%$10,0003 months
0.25%$50,0003 months
0.25%$100,0003 months
0.25%$250,0003 months
0.40%$0.016 months
0.40%$10,0006 months
0.40%$50,0006 months
0.40%$100,0006 months
0.40%$250,0006 months
0.50%$0.019 months
0.50%$10,0009 months
0.50%$50,0009 months
0.50%$100,0009 months
0.50%$250,0009 months
0.40%$0.0112 months
0.45%$10,00012 months
0.50%$50,00012 months
0.55%$100,00012 months
0.65%$250,00012 months
0.45%$0.0118 months
0.50%$10,00018 months
0.55%$50,00018 months
0.60%$100,00018 months
0.70%$250,00018 months
0.55%$0.012 years
0.55%$10,0002 years
0.60%$50,0002 years
0.65%$100,0002 years
0.75%$250,0002 years
0.55%$0.013 years
0.55%$10,0003 years
0.60%$50,0003 years
0.65%$100,0003 years
0.75%$250,000 3 years
0.55%$0.014 years
0.55%$10,0004 years
0.60%$50,0004 years
0.65%$100,0004 years
0.75%$250,0004 years
0.55%$0.015 years
0.55%$10,0005 years
0.60%$50,0005 years
0.65%$100,0005 years
0.75%$250,0005 years
  • Minimum balance to open account: $500
  • Minimum balance to earn APY: $0.01
  • Early withdrawal penalty: 90 days’ dividends on terms of 12 months or less; 180 days’ dividends on terms between 12 and 24 months; 360 days’ dividends on terms longer than 24 months

Allegacy Federal Credit Union offers the same maturity range for its IRA CDs as it does for its taxable CDs, with terms ranging from 3 months to 5 years. The minimum balance is the same for both types of CDs, as are the early withdrawal penalties. However, the yields paid on IRA CDs are higher across the board.

How to get Allegacy Federal Credit Union’s IRA products

IRA accounts can be opened online at Allegacy Federal Credit Union. The online application process takes about 10 minutes and requires a Social Security number, a funding source like a bank account, credit card or debit card, and a valid form of ID, such as a passport or driver’s license. A state or military ID is also sufficient. Membership in the credit union is required as well.

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How Allegacy Federal Credit Union’s IRA products compare

Across the board, Allegacy Federal Credit Union’s IRA CD rates are excellent. For nearly every maturity, the credit union’s IRA CD rates beat the national average, even at the lowest tier level. The top tiers all clear the national average, in some cases by a significant margin. No one rate reaches the top IRA CD rates available nationwide, but overall, the credit union offers a solid IRA CD lineup.

Overall review of Allegacy Federal Credit Union’s products

Allegacy Federal Credit Union offers a diverse stable of personal financial products. Whether the credit union meets your needs will depend on exactly what you’re searching for in an institution.

On the checking front, it’s easy to get an interest-bearing, no-fee account; however, you won’t earn much by way of interest. For most customers, the SmartRate Checking account is the best bet. If you’re looking for a savings account at the credit union, it pays to be a fitness buff. While most of the credit union’s savings accounts are lackluster, the AllHealth Wellness Savings account pays an outstanding APY for those that visit a specified health club at least 12 times per month.

Allegacy Federal Credit Union shines in the CD categories. In addition to having a wide range of maturities, both taxable and IRA CDs pay high rates overall. The credit union’s specialty CDs carry APYs well above average, and the Mortgage Saver CD has more flexibility than an average CD while also helping with closing costs under certain conditions.

Money market accounts are another strong point at Allegacy Federal Credit Union. Both of the credit union’s offerings have no fees or minimums, and the top-level High-Tier Money Market pays one of the better rates in the nation. The only drawback is the high minimum investment required to earn those high yields.

Taken as a whole, Allegacy Federal Credit Union scores high points for its accounts. The diversity of the account offerings is impressive, with specialty accounts designed to serve the needs of a multitude of customers. Those seeking high yields have more than a few options to choose from across categories, and overall, fees are either low or nonexistent, with the one sore point being high overdraft fees. Customers in Allegacy Federal Credit Union’s service area will likely be happy with the available account options overall.

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