Monday, 24 June 2019

Air Force Federal Credit Union Reviews: Checking, Savings, CD, Money Market and IRA Accounts

Air Force Federal Credit Union Reviews: Checking, Savings, CD, Money Market and IRA Accounts
06 Sep
5:58

AFFCU’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.10%

Savings

AFFCU Regular Share Account

1.85%

Goldman Sachs Bank USA High-yield Online Savings Account

on Goldman Sachs Bank USA’s secure website

2.30%

CD Rates

AFFCU 1 Year CD

2.50%

Ally Bank High Yield 12-Month CD

on Ally Bank’s secure website

2.60%

CD Rates

AFFCU 3 Year CD

2.70%

Synchrony Bank 36 Month CD

on Synchrony Bank’s secure website

2.90%

CD Rates

AFFCU 5 Year CD

3.10%

Goldman Sachs Bank USA High-yield 5 Year CD

on Goldman Sachs Bank USA’s secure website

Air Force Federal Credit Union’s checking account options

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How Air Force Federal Credit Union’s checking accounts compare

We love the variety with Air Force Federal Credit Union’s checking accounts. Whether your goal is to earn tons of perks, minimize fees on a small account or do something in the middle, AFFCU offers something that could be a good fit.

If you can manage the $750 balance requirement, the Plus account seems like the best value because it comes with nearly all the features of Elite Checking with a fraction of the balance requirement — $750 versus $50,000.

The key downside of Air Force Federal Credit Union’s checking accounts is they do not pay enough interest. Elite starts to pay a decent rate once you deposit about $100,000 but that’s not realistic for most people. The other accounts pay nothing or practically nothing. If you’d like the same benefits as what’s available through this credit union, while earning a decent interest rate, take a look at the top online checking accounts.

Air Force Federal Credit Union’s savings account options

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How Air Force Federal Credit Union savings accounts compare

The Air Force Federal Credit Union savings accounts are not that great. They just do not pay enough interest to make up for the extra restrictions for using a savings account instead of a checking account.

The Christmas Club account is a good example of the cost of those restrictions: If you ever need your money before November 1, AFFCU charges a $10 fee which will likely erase your earnings and eat into your initial deposit. You can receive the same interest rate through the regular Savings account, making that account a better option to prepare for the holidays.

Or even better, check out these other savings accounts which also have low fees but pay much higher rates.

Air Force Federal Credit Union’s CD rates

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How the Air Force Federal Credit Union CDs compare

Despite the complicated — and potentially costly — early withdrawal penalty, the Air Force Federal Credit Union Share Certificates are a terrific option. They pay high interest rates, especially for their shorter-term CDs of three years or less.

The rates look even better when you add in their relationship bonus for having an Air Force Federal Credit Union loan and checking account. We also like that you can open a Share Certificate with a deposit of only $1,000 and still earn the full APY on 6 month to three year terms.

One downside of these CDs is they don’t pay a higher rate for larger deposits: $1,000 or $1 million, it’s the same rate. Also, for longer-term deposits their rates are good but not quite as good as the short-term ones. If you want a larger, long-term CD or just want to compare your options, you should look at these other top CDs as well.

Air Force Federal Credit Union’s money market account options

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How the Air Force Federal Credit Union money market account compares

The Air Force Federal Credit Union money market account earns more than its savings counterpart, but the rate is still not that high. Especially when compared to the top money market accounts on the market. We also don’t like that the interest rate stays the same even after your account balance exceeds the $2,500 minimum initial deposit. There’s no increase for larger deposits. Also, that initial deposit requirement is on the high side.

On the plus side, this account is free so long as you have a balance of at least $250. But there are other free money market accounts that still pay more. If you’re going to deal with all the money market restrictions, you should look for an account that offers a more reasonable rate.

Air Force Federal Credit Union IRA account options

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How Air Force Federal Credit Union’s IRA accounts compare

Out of the two deposit IRAs from the Air Force Federal Credit Union, the IRA Certificate is the much better choice. It offers terrific interest rates that match up well even with the best IRA CDs in the country. Another great feature is you can set up an Air Force Federal Credit Union IRA Certificate for a deposit of only $1,000 for select tiers. Most top IRA CDs usually require more.

The IRA Share account is just OK. It’s nice that you can open one with just $5 and that Air Force Federal Credit Union lets you move money out of the account without a penalty. Still, the interest rates are just not high enough.

You are better off using either the IRA Certificates or considering another one of the top IRA CDs on the market.

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David Rodeck

David Rodeck |

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

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Source: https://www.magnifymoney.com/blog/reviews/air-force-federal-credit-union/

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