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NexBank Review: Checking, Savings, CD and Money Market Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

NexBank Checking account options

Platinum One Checking

This interest-bearing checking account has a monthly fee and high minimum balance requirement.

APY

Minimum Balance Amount to Earn APY

1.25%

$2,000

  • Minimum opening deposit: $2,000
  • Monthly account maintenance fee: $25
  • ATM fee: None
  • ATM fee refund: Up to $20 per statement cycle
  • Overdraft fee: $25

NexBank’s Platinum One checking account has a high minimum balance requirement compared to many checking accounts out there, so it would likely only appeal to people who want to earn more interest on those funds than they might with a basic checking account, and are able to deposit and maintain the $2,000 daily minimum. For these customers, the $25 monthly fee may be negligible. This account also offers customers online banking and bill pay capabilities, as well as custom checks and traveler and cashier’s checks. Its generous ATM refund policy is also a definite plus, as the bank only has two ATMs at its two Dallas locations.

How to get NexBank’s Platinum One Checking account

If you’re based in Texas and interested in opening this checking account, you’ll have to visit one of its two locations in person, which may not be worth the effort if you don’t live near Dallas. Its headquarters are located at 2515 McKinney Ave., Suite 1100, Dallas, TX 75201, and its lone branch location, Preston Center, is at 6121 Luther Lane, Dallas, TX 75225. You’ll need to bring a valid Texas driver’s license or ID card to be able to open the account.

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on NexBank’s secure website

Member FDIC

E-Free Checking

A non-interest-bearing checking account with no monthly fees or minimum balance requirements.
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: Up to $10 per statement cycle
  • Overdraft fee: $25

If you’re a Texas resident looking for a simple checking account to manage your funds without having to worry about any fees or balance requirements, this account could be a good option for you. This account doesn’t earn interest, however. While the lack of fees is definitely a plus, this no-frills account doesn’t really offer any perks outside of basic services like online banking and bill pay.

How to get NexBank’s E-Free Checking account

If you’re based in Texas and interested in opening a NexBank checking account, you’ll have to visit one of its two Dallas locations in person. Its headquarters are located at 2515 McKinney Ave., Suite 1100, Dallas, TX 75201, and its lone branch location, Preston Center, is at 6121 Luther Lane, Dallas, TX 75225. You’ll need to bring a valid Texas driver’s license or ID card to be able to open the account.

SEE DETAILS Secured

on NexBank’s secure website

Member FDIC

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How NexBank’s checking accounts compare

NexBank’s checking accounts don’t really offer customers anything when it comes to perks, outside of basic services. The absence of fees on its basic checking account is a plus, but the fact that you have to open the account in person (as with most of NexBank’s other products) is likely to be a huge drawback for any customers living outside of the Dallas area — especially considering that there are so many convenient online checking account options out there. The APY on its Platinum One Checking account, however, is higher than the national average, so that one is likely to appeal to Dallas-area residents who are able to maintain its $2,000 minimum balance requirement, which is higher than most offerings out there.

NexBank savings account

A traditional interest-bearing savings account with minimal restrictions.

APY

Minimum Balance Amount to Earn APY

0.15%

$200

  • Minimum opening deposit: $200
  • Minimum balance to earn APY: $200
  • Monthly account maintenance fee: $3 if balance falls below $200
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $25

NexBank’s savings account is suitable for Texas residents looking for an interest-bearing savings account with minimal fees and requirements. You can avoid its $3 monthly fee by maintaining a balance of at least $200, which isn’t hard to do if you’re putting money away with the intention of not touching it.

As with the bank’s checking accounts, you have to open this account in person. Since it does not offer any ATM fee refunds, this savings account likely won’t appeal to people who live outside of the Dallas area and aren’t able to regularly visit one of the bank’s two locations to make a withdrawal.

Once you open the account, however, you will have online banking capabilities and the ability to transfer funds with ease. While account holders get unlimited in-person and ATM transactions, this account is subject to Federal Reserve Regulation D, which limits account holders up to six certain types of fund transfers per month.

How to get NexBank’s savings account

As with NexBank’s other account options, you have to be a Texas resident and be able to visit the bank’s Dallas headquarters or branch location to open a savings account in person. Its headquarters are located at 2515 McKinney Ave., Suite 1100, Dallas, TX 75201, and its lone branch location, Preston Center, is at 6121 Luther Lane, Dallas, TX 75225. You’ll need to bring a valid Texas driver’s license or ID card to be able to open the account.

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on NexBank’s secure website

Member FDIC

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How Nexbank’s savings account compares

While this savings account has a low minimum balance requirement and easily waivable monthly fee going for it, it doesn’t offer much else. It’s only available to Texas residents, and the fact that you have to open it in person at one of NexBank’s two locations lessens its appeal even more.

It also doesn’t offer ATM refunds; if its two ATM locations aren’t convenient, this account has even less going for it. Lastly, with an APY below the national average, it’s significantly lower than some of the best online savings account options out there, many of which don’t even have a minimum balance requirement.

NexBank CD rates

NexBank CDs

Various term lengths to choose from, with many offering competitive and higher-than-average rates.

Term

APY

1 month

0.10%

2 months

0.10%

3 months

1.41%

6 months

1.51%

12 months

1.61%

18 months

1.61%

24 months

1.61%

36 months

1.61%

48 months

1.61%

60 months

1.61%

  • Minimum opening deposit: $10,000
  • Minimum balance amount to earn APY: $10,000
  • Early withdrawal penalty: 6 months’ worth of interest if the CD hasn’t reached maturity.

NexBank offers a wide range of CD term lengths for customers looking for an efficient way to put away funds for an extended period of time while earning interest. However, its shorter term offerings have rates below the national average. If you go for one at least 12 months in length, though, rates are more competitive, going up to twice as high as the national average. While you can deposit as much as $240,000 into NexBank’s CDs, its $10,000 minimum opening deposit is higher than some of the other top CD options out there, many of which also offer much higher rates.

How to get NexBank’s CDs

Unlike with NexBank’s checking and savings account options, its CDs are available to out-of-state customers and you are able to open them online, as well as in person at one of its two Dallas locations. To do so, you will need several pieces of information, including your Social Security number, driver’s license or government-issued ID, checking or savings routing and account number (if linking a non-NexBank account to your application), your employment status, an address and a phone number. You must be a U.S. citizen or permanent U.S. resident to apply for a NexBank CD.

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on NexBank’s secure website

Member FDIC

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How NexBank’s CD rates compare

While many of NexBank’s CD rates are competitive and higher than the national average, there are still better CD options out there, with both higher rates and lower minimum balance requirements. If you’re not based in Texas, you can’t even apply for any of NexBank’s other products anyway, so there’s really no reason to seek these CDs out over a bank that offers all of its services online.

NexBank Money Market account

High-Yield Money Market account

A high-yield account with higher-than-average rates.

APY

Minimum Balance Amount to Earn APY

1.00%

$0-$99,999

1.46%

$100,000

  • Minimum opening deposit: $10,000
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: $25 if balance falls below $10,000
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $25

Just like its checking and traditional savings accounts, NexBank’s High-Yield Money Market account is only available to Texas-based customers who are able to open it in person. It does, however, offer high interest rates and the ability to waive the monthly fee if the account balance stays above the $10,000 minimum deposit required to open it. While account holders get unlimited in-person and ATM transactions, this account is subject to Federal Reserve Regulation D, which limits account holders up to six certain types of fund transfers per month.

How to get NexBank’s money market account

If you want to open NexBank’s money market account, you are required to be a Texas resident and be able to visit one of the bank’s two Dallas locations to open it in person. Its headquarters are located at 2515 McKinney Ave., Suite 1100, Dallas, TX 75201, and its sole branch location, Preston Center, is at 6121 Luther Lane, Dallas, TX 75225. You’ll need to bring a valid Texas driver’s license or ID card to be able to open the account.

SEE DETAILS Secured

on NexBank’s secure website

Member FDIC

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How NexBank’s money market account compares

While NexBank’s money market account offers competitive rates, they’re simply not the best out there. With other banks offering both higher rates on money market accounts and the ability to open an account online, there’s really no reason to choose this one over something more convenient, even if you do live near Dallas.

Overall review of NexBank’s banking products

While NexBank’s accounts are available to customers across the state of Texas, they really aren’t the most worthwhile or convenient option for people that don’t live close to Dallas. The fact that you have to visit a branch in person to open an account (with the exception of its CDs) or use a fee-free ATM is a huge disadvantage, so we don’t know why you wouldn’t choose a more convenient option like an online bank.

Additionally, none of its products offer customers any real rewards or benefits outside of basic services you would expect to get with virtually any bank, such as mobile and online banking. Lastly, while its CD rates are competitive and available to out-of-state customers, there are still better options out there, so we say look elsewhere, especially since you can’t take advantage of any of NexBank’s other offerings and services.

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.

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Reviews

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

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Mountain America Credit Union’s checking account options

MyFree Checking

MyFree Checking is Mountain America Credit Union’s entry in the low-fee, no-frills checking account category.
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: $0; up to $2.50 for non-MACU/CO-OP network ATMs
  • ATM fee refund: none
  • Overdraft fee: up to $25

Mountain America Credit Union’s MyFree Checking tries to live up to its moniker by offering an account with no monthly maintenance fees, minimum balance requirements or restrictions. The account also carries a number of free benefits, including:

  • Online and mobile banking
  • Unlimited check-writing privileges
  • Bill pay
  • Mountain America Visa® debit cards
  • eStatements
  • Free access to FICO® credit scores

This account does not pay any interest. Customers choosing to receive paper statements will be assessed a $2 monthly fee, and non-MACU ATM withdrawals also trigger a fee.

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on Mountain America Credit Union’s secure website

NCUA Insured

MyStyle Checking

MyStyle Checking, Mountain America Credit Union’s rewards checking account, has a small but avoidable fee.
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $4; $0 with either $1,000+ in direct deposits each month, 10+ credit and/or debit card transactions each month, or an average daily checking balance of $2,500+ for the month, as well as for members who are less than 25 years old or at least 60 years old
  • ATM fee: $0; up to $2.50 for non-MACU/CO-OP network ATMs
  • ATM fee refund: none
  • Overdraft fee: up to $25

Mountain America Credit Union’s MyStyle Checking offers an extensive rewards program with no minimum deposit requirement and a small monthly fee that can be waived in a number of ways. You receive awards points based on various account activities, ranging from using online bill pay or making a mobile deposit, to making a loan payment or using a Visa® Rewards credit card. Points can then be redeemed for hundreds of options, such as gift cards, cash back, travel rewards or event tickets.

The account offers most of the same free benefits as the MyFree Checking account, including online and mobile banking, a Visa® debit card and free access to your FICO® credit scores. An additional benefit not offered with Mountain America Credit Union’s free checking account is a 0.25 percent discount on auto, RV and personal loans. Like MyFree Checking, however, this account does not pay any interest.

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on Mountain America Credit Union’s secure website

NCUA Insured

Student Checking

Mountain America Credit Union’s Student Checking account is similar to its MyStyle, but for the under-24 cohort.
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $4; $0 for students ages 16 to 24
  • ATM fee: $0; up to $2.50 for non-MACU/CO-OP network ATMs
  • ATM fee refund: none
  • Overdraft fee: up to $25

Student Checking allows younger savers the ability to enjoy all the benefits of Mountain America Credit Union’s regular checking accounts and even more, as the account comes with a rewards program.

Like the MyStyle rewards checking account, Student Checking has a $4 monthly fee, but it doesn’t require qualifying activity to have that fee waived — simply being a student ages 16 to 24 will do the trick. The account has no required minimum balance, and the rewards program is the same as offered with the MyStyle checking account.

Student Checking also comes with mobile banking features, a Visa® debit card, and a 0.25 percent discount on auto, RV and personal loans.

How to get Mountain America Credit Union’s checking accounts

The MyFree Checking and MyStyle Checking accounts can be opened online, by visiting a Mountain America Credit Union branch or by calling (800) 748-4302. For the Student Checking account, applicants must join the credit union at a branch.

The online application requires the opening of a membership savings account first. To get started, you’ll need a Social Security number, driver’s license and personal contact information.

SEE DETAILS Secured

on Mountain America Credit Union’s secure website

NCUA Insured

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How Mountain America Credit Union’s checking accounts compare

Mountain America Credit Union offers just three checking accounts, but they have a good range of services. With a free checking account, a rewards checking account and a student checking account, Mountain America Credit Union’s product line is likely to appeal to a wide range of customers.

The major drawback of all of these accounts is that none of them pay any interest. Thus, no comparison can be made between the rates on Mountain America Credit Union’s checking accounts and the national average rate, let alone some of the interest offered in our list of the best checking accounts available. All of the accounts also charge fees for usage of non-MACU ATMs.

Mountain America Credit Union’s savings account options

Traditional Savings

Mountain America Credit Union’s basic savings account, which customers must open to join the credit union.
APYMinimum Balance to Earn APY
0.10%$100
  • Minimum opening deposit: $5
  • Monthly account maintenance fee: $0
  • ATM fee: $0; up to $2.50 for non-MACU/CO-OP network ATMs
  • ATM fee refund: none
  • Overdraft fee: up to $25

Mountain America Credit Union’s Traditional Savings account acts both as a membership account and as the credit union’s sole straight savings account. Minimum opening requirements are low, and there are no monthly fees. At least $5 must be kept in the account at all times to maintain membership in the credit union.

Interest is earned on balances of $100 or more, with the same rate paid on all qualifying balances. Money can be transferred to other accounts, which can be done either in person at a branch or using the credit union’s mobile app.

Secondary savings accounts, with the same account features and benefits, can be opened for specific goals, such as vacations or gifts. Secondary accounts earn interest starting from the first dollar.

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on Mountain America Credit Union’s secure website

NCUA Insured

Teen Savings

This account is essentially the Traditional Savings, but for those 13 to 17 years old.
APYMinimum Balance to Earn APY
0.10%$25
  • Minimum opening deposit: $5
  • Monthly account maintenance fee: $0
  • ATM fee: $0; up to $2.50 for non-MACU/CO-OP network ATMs
  • ATM fee refund: none
  • Overdraft fee: up to $25

The Teen Savings account is designed to help older kids become familiar with money-management skills. With a parent or guardian cosigner, this account grants access to a debit card, so teenagers can learn how to handle their money responsibly. The account also features free online and mobile features likely to appeal to younger customers.

Teen Savings has essentially the same financial parameters as the credit union’s Traditional Savings account, with a low minimum to open and no monthly fees.

SEE DETAILS Secured

on Mountain America Credit Union’s secure website

NCUA Insured

Youth Savings

This account is targeted at the very youngest segment of Mountain America Credit Union’s customer base.
APYMinimum Balance to Earn APY
0.10%$25
  • Minimum opening deposit: $5
  • Monthly account maintenance fee: $0
  • ATM fee: n/a
  • ATM fee refund: n/a
  • Overdraft fee: n/a

The Youth Savings account pays dividends and aims to help kids 12 and younger understand how money and savings work. However, there is no ATM access on this account.

The account requires an adult 18 or older to cosign, and it automatically converts to a Traditional Savings account when the child turns 18. As an added benefit, Mountain America Credit Union provides a free piggy bank with each new Youth Savings account.

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on Mountain America Credit Union’s secure website

NCUA Insured

Christmas Club Savings

APYMinimum Balance to Earn APY
2.00%
$5
  • Minimum opening deposit: $5
  • Monthly account maintenance fee: $0
  • ATM fee: n/a
  • ATM fee refund: n/a
  • Overdraft fee: n/a

The Mountain America Credit Union Christmas Club account requires a $5 opening deposit, has no monthly fees and pays an astoundingly high APY. Funds mature every Nov. 1, at which point the account automatically converts to a secondary savings account. Withdrawals cannot be made before the maturity date.

How to get Mountain America Credit Union’s savings accounts

Customers can open Mountain America Credit Union savings accounts either online, in-branch or by calling (800) 748-4302, with the exception of the Christmas Club account, which cannot be opened online. The online account-opening process is the same one for all new MACU accounts, requiring a Social Security number, driver’s license and personal contact information.

SEE DETAILS Secured

on Mountain America Credit Union’s secure website

NCUA Insured

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How Mountain America Credit Union’s savings accounts compare

Mountain America Credit Union’s Traditional Savings account is just what the name suggests, a basic savings account that pays interest and has no monthly fees. It’s also the membership account for the credit union.

The other savings accounts at Mountain America Credit Union are all specialty accounts, focusing on teen, youth or holiday savers. The Traditional and Teen accounts pay rates below the national average, and far below the APY available on the nation’s best savings accounts.

Mountain America Credit Union’s CD account options

Term Deposit

Mountain America Credit Union’s traditional CD account, with maturities ranging from six months to five years.
TermAPYMinimum Balance to Earn APY
6 Month1.75%
$500
12 Month1.85%
$500
18 Month1.90%
$500
24 Month2.00%
$500
30 Month2.05%
$500
3 Year2.90%
$500
4 Year3.00%
$500
5 Year3.10%
$500
  • Minimum balance to open account: $500
  • Minimum balance to earn APY: $500
  • Early withdrawal penalty: 90 days’ interest on terms of 12 months or less; 180 days’ interest on terms of 12 to 48 months; 365 days’ interest on terms greater than 48 months

Mountain America Credit Union’s standard CD accounts, dubbed Term Deposits, come in a wide range of maturities and pay relatively high rates. A $500 minimum is enough to earn the stated APY, which is fixed for the life of the term deposit, so long as there are no early withdrawals.

As is standard with credit unions, deposits are insured up to $250,000 by the National Credit Union Administration, or NCUA. Term deposits at Mountain America Credit Union automatically renew upon maturity at the then-current rate offered by the credit union.

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on Mountain America Credit Union’s secure website

NCUA Insured

Term Deposit Plus

Term Deposit Plus has low minimums to open and allows customers to add funds at will.
TermAPYMinimum Balance to Earn APY
6 Month1.50%
$5
12 Month2.60%
$5
18 Month2.65%
$5
24 Month2.75%
$5
30 Month2.80%
$5
3 Year2.90%
$5
4 Year3.00%
$5
5 Year3.10%
$5
  • Minimum opening deposit: $5
  • Minimum balance amount to earn APY: $5
  • Early withdrawal penalty: 90 days’ interest on terms of 12 months or less; 180 days’ interest on terms of 12 to 48 months; 365 days’ interest on terms greater than 48 months

Term Deposit Plus accounts offer the same rates and maturities as Mountain America Credit Union’s standard Term Deposit accounts. However, the Term Deposit Plus account does require monthly automated deposits of at least $10 to open, though the minimum on the account is just $5.

Funds can be added at any time, which is unusual for a CD account.

SEE DETAILS Secured

on Mountain America Credit Union’s secure website

NCUA Insured

Term Deposit (Youth)

Like a Term Deposit Plus for those under 28, but with some different rates
TermAPYMinimum Balance to Earn APY
12 Month2.10%
$5
24 Month2.25%
$5
36 Month2.36%
$5
48 Month2.36%
$5
60 Month2.40%
$5
  • Minimum balance to open account: $5
  • Minimum balance amount to earn APY: $5
  • Early withdrawal penalty: 90 days’ interest on terms of 12 months or less; 180 days’ interest on terms of 12 to 48 months; 365 days’ interest on terms greater than 48 months

The Youth Term Deposit account only requires a small minimum to open. Additional deposits of up to $10,000 per year are accepted. There are no monthly fees with this account, and it pays the highest APY of any CD on offer at Mountain America Credit Union.

This CD automatically renews upon maturity, although there is a 10-day grace period after maturity to close the account without triggering early withdrawal penalties. When an account holder turns 28, the account automatically converts to a normal term deposit.

How to get Mountain America Credit Union’s CD accounts

Current members of Mountain America Credit Union can open a Term Deposit account online using their existing account information. New members must visit a branch to open a CD account. Term Deposit Plus and Youth Term Deposit accounts must be opened either in person or by calling (800) 748-4302.

SEE DETAILS Secured

on Mountain America Credit Union’s secure website

NCUA Insured

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How Mountain America Credit Union’s CD accounts compare

Rates for Mountain America Credit Union CD accounts are high across the board. The Youth Term Deposit account is particularly attractive, paying the highest CD APY at Mountain America Credit Union and only requiring a $5 minimum deposit. However, even Mountain America Credit Union’s regular CD line offers yields that are competitive with the highest available CD rates and are far above the national average

Mountain America Credit Union’s money market account option

Money Market

Mountain America Credit Union’s Money Market account is its lone offering in this category.
APYMinimum Balance to Earn APY
0.10%
$0
0.40%
$2,500
0.45%
$10,000
0.55%
$25,000
0.65%
$50,000
0.75%
$100,000
0.85%
$250,000
  • Minimum opening deposit: $2,500
  • Monthly account maintenance fee: $0
  • ATM fee: $0; up to $2.50 for non-MACU/ CO-OP ATMs
  • ATM fee refund: none
  • Overdraft fee: up to $25

The Mountain America Credit Union Money Market account has a $2,500 minimum, but if your balance drops below this amount, you still earn interest on the account. The rate drops to 1% below the current savings account rate, but it will never be lower than 0.10%.

This account pays higher interest than a savings account but allows greater access than with a CD. Dividends are paid monthly, and funds can be withdrawn at any time, up to the federally mandated limit of six per month. Additional withdrawal requests may be denied by the credit union.

How to get Mountain America Credit Union’s money market accounts

Mountain America Credit Union’s Money Market accounts can be opened online, in a branch or by calling (800) 748-4302. The online application is the standard one for new MACU accounts, requiring the opening of a membership savings account in addition to any other desired accounts. The credit union requires a Social Security number, driver’s license and personal contact information to get started.

SEE DETAILS Secured

on Mountain America Credit Union’s secure website

NCUA Insured

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How Mountain America Credit Union’s money market account compares

Interest rates start low with the Mountain America Credit Union Money Market account, but they climb above the national average once deposits of at least $10,000 are made. You can still probably get higher rates with the best available money market accounts, but rates at the highest Mountain America Credit Union tier are at least respectable. The money market product line at Mountain America Credit Union is not very diverse, however, as just the single account is available.

Mountain America Credit Union’s IRA account options

Money Market IRA

Mountain America Credit Union’s Money Market IRA operates like a traditional money market fund, except fund access is much more limited.
APYMinimum Balance to Earn APY
0.10%
$0
0.40%
$2,500
0.45%
$10,000
0.55%
$25,000
0.65%
$50,000
0.75%
$100,000
0.85%
$250,000
  • Minimum opening deposit: $2,500
  • Minimum balance to earn APY: $0
  • ATM fee: n/a
  • ATM fee refund: n/a
  • Overdraft fee: n/a

Mountain America Credit Union’s IRA Money Market account is a clone of its non-IRA Money Market account. Both share the same tiered interest-rate structure, with the same rates paid at the various breakpoint levels. The minimum opening deposit remains at $2,500, although balances as low as $0.01 still earn interest.

The one distinction, of course, is that this is a tax-advantaged retirement account, and any money withdrawn from an IRA ahead of retirement may face IRS taxes and penalties.

How to get Mountain America Credit Union’s IRA accounts

IRA accounts at Mountain America Credit Union are contracted with LPL Financial. To open an IRA, customers must schedule a consultation with an LPL Financial adviser.

SEE DETAILS Secured

on Mountain America Credit Union’s secure website

NCUA Insured

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How Mountain America Credit Union’s IRA account compares

Mountain America Credit Union’s IRA Money Market features the same rates as its non-IRA product, meaning they start low and rapidly climb to respectable levels. Top rates remain firmly above the national average. However, Mountain America Credit Union doesn’t offer its own IRA CDs, so no comparison can be made with the best IRA CD rates available nationwide. Also, as mentioned, investment products are handled through LPL Financial rather than directly by the credit union.

Overall review of Mountain America Credit Union’s products

Mountain America Credit Union offers some solid account options, though in some areas it comes up short.

The credit union offers three checking accounts that are reasonable in terms of what they provide, but don’t pay any interest, making them more suitable for existing Mountain America Credit Union customers looking for convenience. In the savings account department, Mountain America Credit Union offers specialty accounts for teens and youths, in addition to a membership savings account, but rates are below-average across the board.

On the other hand, the credit union’s Christmas Club savings account pays an extraordinary rate. The money market rates are generally above-average, but the star accounts at Mountain America Credit Union are its Term Deposit, or CD accounts, which pay rates that compete with the best in the nation.

Overall, Mountain America Credit Union has a solidly diverse lineup of accounts that can cover the basic banking needs of most customers. Those seeking high yields will likely be drawn to the credit union’s CD products.

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.

Advertiser Disclosure

Reviews

Review of State Farm Bank Rates

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

State Farm CD rates

Regular CDs

CDs from State Farm Bank don’t offer the highest rates available, and with a somewhat complex early withdrawal fee policy, you can likely find a better place to keep your money in a CD.

Term

Less than $100,000

$100,000+

12 months

1.50%

1.50%

24 months

1.50%

1.50%

30 months – special term

1.75%

1.75%

36 months

1.75%

1.75%

48 months

1.75%

1.75%

60 months

1.75%

1.75%

  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: If you make a principal withdrawal within six days of your initial deposit, or within six days of your previous withdrawal, the penalty is seven days’ interest. For all other principal withdrawals, the penalty will be the greater of a minimum of $25 or:
    • 90 days of interest for a CD term of 11 months or less
    • 180 days of interest for a CD term of 12 to 23 months
    • 365 days of interest for a CD term of 24 to 47 months
    • 545 days of interest for a CD term of 48 months or greater

We like that the account minimum is low at only $500, which makes it easy to get started with little money. Another benefit is that interest compounds daily and can be added to the CD, paid out to you by check, or deposited into a State Farm Bank account.

However, rates are low compared to many other banks’ CD products, and the complex early withdrawal penalty makes it less attractive if you’d have to withdraw your funds early for any reason.

If you decide to use this product, make sure you invest money that you likely will not need to access during the time that it is invested. Also, you have to move quickly when your CD matures if you want to withdraw your funds without a penalty — there is only a 10-calendar-day grace period after which the CD will automatically renew.

How to get State Farm’s CDs

You can apply for an account directly on State Farm’s website. To be eligible, you must have a Social Security Number, Tax Identification Number, or Individual Taxpayer Identification Number. Minors may open a CD and be listed as the primary or secondary account holder; however these accounts must be opened through a State Farm agent or by phone.

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Coverdell Education Savings Account (ESA) CDs

If saving for your child’s education is important to you, you might consider using a Coverdell ESA. Contributions are not tax deductible, but funds will grow tax-free until distributed. Plus, the earnings are used for qualified education expenses, they can be withdrawn tax-free.

Coverdell ESA funds can be invested in a CD or in mutual funds. CD rates are listed in the table below.

Term

APY (Less than $100,000)

APY ($100,000+)

12 months

1.50%

1.50%

24 months

1.50%

1.50%

30 months – special term

1.75%

1.75%

36 months

1.75%

1.75%

48 months

1.75%

1.75%

60 months

1.75%

1.75%

  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: If you make a principal withdrawal within six days of your initial deposit, or within six days of your previous withdrawal, the penalty is seven days’ interest. For all other principal withdrawals, the penalty will be the greater of a minimum of $25 or:
    • 90 days of interest for a CD term of 11 months or less
    • 180 days of interest for a CD term of 12 to 23 months
    • 365 days of interest for a CD term of 24 to 47 months
    • 545 days of interest for a CD term of 48 months or greater

Coverdell ESA CD rates are the same as traditional CD rates. The only difference is that these funds are to be used for educational expenses for students.

The contribution maximum is $2,000 per student per year up to age 18, even if multiple accounts are opened for the same student. This means if you open account for your child and your parents open an account for your child, the combined maximum is still $2,000 per year.

There is also a modified adjusted gross income cap of $95,000 for single tax filers and $190,000 for married filing jointly, after which only a partial contribution can be made to a Coverdell ESA. If your modified adjusted gross income is above $110,000 for single tax filers, or $220,000 for married filing jointly, you are not eligible to contribute to a Coverdell ESA.

Distributions from a Coverdell ESA don’t have to be reserved for college expenses. Any educational expenses for kindergarten through grad school may qualify. Qualified expenses include things like:

  • Tuition and fees
  • Academic tutoring
  • Books, supplies, and equipment
  • Room and board
  • Uniforms
  • Transportation
  • Computers and technology

Coverdell ESA funds can also be invested in mutual funds instead of CDs. Mutual funds may offer higher interest rates, depending on which funds are selected.

How to get State Farm Bank’s Coverdell Education Savings Account (ESA) CDs

An ESA can be opened by anyone, including the child for whom the funds are being saved, as long as their modified adjusted gross income falls without the limits outlined above. The combined total per year cannot exceed $2,000. There is no limit to the number of accounts that can be established for one student.

If funds contributed exceed $2,000, they must be withdrawn before June 1 of the following tax year. If they aren’t, the funds will be subject to a 6% excise tax, which will be reported on the child’s tax return each year that the excess funds remain in the account.

To open an account, call State Farm Bank at 1-877-734-2265.

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How State Farm’s CD rates compare

While State Farm Bank offers a low minimum account deposit to open a CD, better CD rates can be found elsewhere. We’d suggest shopping around to find a higher interest rate CD, or investing your money in a different type of account.

State Farm’s IRA accounts

IRA CD rates

State Farm Bank’s IRA CD has a low account minimum of only $500 and also offers both a traditional and Roth plan. Interest is compounded daily, but rates are low compared to what is available from other banks.

Term

APY

12 months

1.50%

24 months

1.50%

30 months Special Term

1.75%

36 months

1.75%

48 months

1.75%

60 months

1.75%

  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $10. If you’re age 59 ½ or older and are taking normal distributions, the account balance may fall below the minimum opening balance. However, it cannot fall below $10.
  • Early withdrawal penalty: If you’re age 59 1/2 or older, normal distributions are allowed without an early withdrawal penalty. However, if you want to transfer funds to a different IRA, withdrawals will be subject to early withdrawal fees. If you make a principal withdrawal within six days of your initial deposit, or within six days of your previous withdrawal, the penalty is seven days’ interest. For all other principal withdrawals, the penalty will be the greater of a minimum of $25 or:
    • 90 days of interest for a CD term of 11 months or less
    • 180 days of interest for a CD term of 12 to 23 months
    • 365 days of interest for a CD term of 24 to 47 months
    • 545 days of interest for a CD term of 48 months or greater

Like other CD products with State Farm Bank, you can withdraw interest earnings without penalty. Another nice benefit with this retirement investing account, you are also eligible to withdraw a portion of your original deposit as a normal distribution without penalty if you are over age 59 1/2. Keep in mind that any interest payments withdrawn will be considered distributions and taxes and IRS penalties may apply if you are under age 59 1/2.

However, one drawback with this account is that you can’t easily access your balance information online, and there are no electronic statements available.

How to get State Farm’s IRA CDs

To open an account, call State Farm Bank at 877-734-2265.

You can open your account with $500 or more and select either a Traditional or Roth plan with terms between 12 and 60 months.

The contribution limit for 2018 is $5,500, or 100% of your earned income, whichever is less. If you are over age 50, you can contribute an additional $1,000 per year.

There are also limits to the amount you can deduct from your taxes based on your adjusted gross income. These limits are based on federal law.

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How State Farm’s IRA CD rates compare

Rates for State Farm’s IRA CD rates aren’t the highest on the market. There are other banks that offer better IRA CD rates so you can earn more interest on your money. One nice benefit that may not be available at all banks is that interest is compounded daily at State Farm Bank.

IRA Money Market Account

Investing in an IRA Money Market account with State Farm Bank may be easier than using their IRA CD product because you can electronically contribute a portion of each paycheck into your Money Market account. Plus, there’s no time commitment required for your investment.

Minimum balance amount

APY

$100 - $9,999

0.50%

$10,000 - $24,999

0.75%

$25,000 - $49,999

0.75%

$50,000 - $99,999

0.75%

$100,000 - $249,999

0.75%

$250,000 - $24,999,999

0.75%

$25,000,000+

0.50%

  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $100
  • ATM fee: None
  • ATM fee refund for foreign transactions: Up to $10
  • Overdraft fee: $25 maximum of 3 per day

With State Farm Bank’s IRA Money Market Account, there is a minimum deposit of $1,000 required to open your account. However, if you take distributions, your account balance may fall to less than $1,000. The minimum balance required to earn interest is $100; however if your average daily balance is less than $500, you will be charged a minimum balance fee of $10.

Withdrawals from this account prior to age 59 1/2 may be subject to IRS penalties. Plus, you must give at least seven days notice before making any transfers or withdrawals from your account.

Interest on this account compounds daily but is only added to your account balance monthly.

You are only allowed to make six transfers from your account each month by phone or mail, otherwise you may be subject to an excessive transaction fee of $10. State Farm also has the right to refuse transactions after you’ve hit the limit, or even close your account. You can make unlimited withdrawals by mail or telephone.

How to get State Farm’s IRA money market account

To open an account, call State Farm Bank at 877-734-2265.

To be eligible, you must be at least 18 years old. IRA money market accounts can only have one owner.

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State Farm’s checking account options

Interest Checking

Although the minimum amount required to open a State Farm Bank Interest Checking account is only $100, you must maintain an average daily balance of $500 in order to avoid a minimum balance fee. In addition, your account must have a balance of $2,500 in order to earn the stated interest rates.

Minimum deposit amount

APY

$0 - $2,499

0.00%

$2,500+

0.25%

  • ATM fee: None.
  • ATM fee refund for foreign transactions: Up to $10
  • Overdraft fee: $25, maximum of 3 per day. Overdraft protection is $3 for a transfer from another State Farm Bank account.

You can’t just deposit $100 to open your account and begin earning interest. In fact, if you only deposit $100 to open your account, you will be subject to a minimum balance fee of $10 if your average daily balance isn’t at least $500.

Plus, if you want to earn interest on your money, you have to have a balance of at least $2,500, significantly more than the minimum required to open the account, or even the minimum required to avoid the minimum balance fee. If you don’t read the fine print, this can be misleading.

There are much better options for interest bearing checking accounts with higher APYs and lower minimum balance requirements.

How to get State Farm’s Interest Checking account

You can apply for an account online in only 10 minutes. You must have a Social Security Number, Tax Identification Number, or Individual Taxpayer Identification Number in order to apply.

There must be at least one account holder that is age 18 or older. Minors may be account holders, but you must open an account with a State Farm agent or by phone.

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Regular Checking

The requirement to open a regular checking account is much lower, plus there are no minimum balance fees to contend with.
  • Minimum deposit amount: $25
  • ATM fee: None.
  • ATM fee refund for foreign transactions: Up to $10
  • Overdraft fee: $25, maximum of 3 per day. Overdraft protection is $3 for a transfer from another State Farm Bank account.

While this account doesn’t earn any interest, we like that there are essentially no fees if you don’t overdraw your account. It also has handy features like mobile check deposit and a mobile banking app. You can also get account alerts by text or email.

It may be a good option for those who aren’t able to meet the minimum balance requirements for State Farm Bank’s Interest Checking account.

However, there are still plenty of online banks that offer interest-bearing checking accounts with no or low minimum balance requirements. You may as well be earning interest on your money with an online bank if you can.

How to Get State Farm Bank’s Regular Checking Account

You can apply for a regular checking account online on State Farm’s website in only a few minutes.

To be eligible for a checking account, you have to have a Social Security Number, Tax Identification Number, or Individual Taxpayer Identification Number. There can be multiple account holders listed, but at least one of them must be 18 years or older. If the account will have a minor listed, it must be opened over the phone or with a State Farm agent.

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How State Farm’s checking accounts compare

Compared to these interest-bearing checking accounts with several online banks, there’s no way State Farm Bank can be competitive. Their account minimums are much higher in order to earn interest. Even then, the amount of interest earned with State Farm is significantly lower than other banks.

We suggest checking out other options besides State Farm if you want to earn interest on your checking account.

State Farm Bank’s savings account options

Consumer Savings Account

The interest rate on State Farm’s Consumer Savings Account may be higher than some brick-and-mortar banks, but it can’t compete with online savings options.

Minimum balance amount

APY

$0 - $9,999

0.10%

$10,000 - $24,999

0.30%

$25,000 - $49,999

0.30%

$50,000 - $99,999

0.30%

$100,000 - $249,999

0.30%

$250,000 - $24,999,999

0.30%

$25,000,000+

0.10%

  • ATM fee: None.
  • ATM fee refund for foreign transactions: Up to $10
  • Overdraft fee: $25, up to 3 per day. Eligible for $3 overdraft protection from a linked State Farm Bank account.

The minimum deposit to open a savings account is $100. If the main account holder is over age 18, there is a minimum balance requirement of $100; if the balance falls below $100, a $3 fee will be charged.

This could be a good starter savings account for those under age 18 who are looking to earn a little interest on their money, especially since there’s no minimum balance fee for main account holders under age 18. That said, there are other online savings accounts with much higher interest rates available.

How to get State Farm’s savings account

A savings account can be opened online if you are over age 18 and a minor won’t be listed as an account holder. However, if a minor will be an account holder, you must open the account by phone or by working with a State Farm agent.

To be eligible for a State Farm savings account, you have to have a Social Security Number, Tax Identification Number, or an Individual Taxpayer Identification Number.

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Health Savings Account (HSA)

Having a HSA is a nice option for State Farm Bank customers; however, higher interest rates can be found elsewhere.

Minimum balance amount

APY

$0 - $2,499

0.05%

$2,500 - $9,999

0.15%

$10,000+

0.40%

  • Annual fee: $25
  • ATM fee: None
  • ATM fee refund for foreign transactions: None

An HSA can be a good way to get tax benefits and earn a little interest at the same time. State Farm’s HSA works essentially like a checking account, but it’s only to be used for qualified medical expenses.

There is no minimum balance fee associated with this HSA account, and after opening, you can make deposits at any time. There is an annual fee of $25 on the first anniversary of your account opening and every year thereafter.

Having an HSA can be a good idea, but you can likely find one with a better interest rate.

How to Get State Farm’s HSA

If you want to open an HSA with State Farm, call 877-734-2265. There is no option to apply online.

By federal law, you can only use an HSA in combination with a high-deductible health insurance plan.

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How State Farm’s savings accounts compare

While it is a good idea to have a savings account, you can earn more interest on your savings by using a different institution. Savings interest rates with State Farm are low, especially when compared to online savings accounts.

State Farm Bank’s Money Market account

Consumer Money Market Account

If you’re new to State Farm Bank, this is the best way to earn extra interest on your initial account opening and deposit. There is an introductory interest rate of 2.00% (1.17% APY) for your first deposit up to $249,999.

Minimum balance amount

APY

$0 - $9,999

0.50%

$10,000 - $24,999

0.75%

$25,000 - $49,999

0.75%

$50,000 - $99,999

0.75%

$100,000 - $249,999

0.75%

$250,000 - $24,999,999

0.75%

$25,000,000+

0.50%

  • ATM fee: None.
  • ATM fee refund for foreign transactions: Up to $10
  • Overdraft fee: $25, up to 3 per day. Eligible for $3 overdraft protection from a linked State Farm bank account

A State Farm Money Market Savings account will help you earn more interest than a traditional savings account with State Farm. If you have the funds available to do a large introductory deposit, you can earn extra interest versus depositing smaller amounts over time because of State Farm’s special introductory offer.

The minimum amount required to open an account is $1,000. However, if you withdraw a portion of your funds later, keep in mind that there is a minimum balance fee of $10 that will be imposed if the average daily balance is below $500.

Like other savings accounts, there is a limit of six transfers from your account each month, including automatic transfer, bill pay, etc. If you go beyond six transfers, State Farm has the right refuse your transaction or even shut down your account. You may also be subject to a $10 fee for excessive transactions. There is also a requirement that you must provide written notice at least seven days before any withdrawal or transfer from the account.

How to get State Farm’s Consumer Money Market Account

You can apply for an account online. To be eligible, you must have a Social Security Number, Tax Identification Number, or Individual Taxpayer Identification Number. One account owner must be over age 18. If a minor will be an account owner, the account must be opened over the phone or via a State Farm agent.

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How State Farm’s money market account compares

While the regular rates on State Farm’s Money Market Savings are not as high as the special introductory rate, they’re much higher than with State Farm’s regular savings account. However, there are still higher money market rates available at other banks. We think it’s a good idea to shop around for a better rate.

Overall review of State Farm banking products

State Farm does have decent terms and interest rates on their products, but they’re certainly not the lowest rates on the market. However, if your main concern is getting the most interest for your money, we recommend finding another bank to house your funds. State Farm is consistently outperformed by other banks that offer higher rates and similar (if not better) terms.

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