Tuesday, 24 November 2020

McGraw-Hill Federal Credit Union Review of Checking, Savings, CD, Money Market and IRA Rates

McGraw-Hill Federal Credit Union Review of Checking, Savings, CD, Money Market and IRA Rates
24 Aug
6:52

McGraw Hill Federal Credit Union’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

1.45%

Savings

McGraw Hill Federal Credit Union S3 Prime Savings

1.85%

Goldman Sachs Bank USA High-yield Online Savings Account

on Goldman Sachs Bank USA’s secure website

0.40%

CD Rates

McGraw Hill Federal Credit Union 12 Month CD

2.50%

CIT Bank 1-Year Term CD

LEARN MORE Secured

on CIT Bank’s secure website

0.15%

CD Rates

McGraw Hill Federal Credit Union 36 Month CD

2.70%

Synchrony Bank 36 Month CD

on Synchrony Bank’s secure website

0.99%

CD Rates

McGraw Hill Federal Credit Union 60 Month CD

3.00%

Barclays 60 Month Online CD

on Barclays’s secure website

McGraw-Hill Federal Credit Union’s checking account

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How McGraw-Hill Federal Credit Union’s checking accounts compare

McGraw-Hill Federal Credit Union made a wise move by streamlining its checking account offerings into its well-rounded S3 Checking Prime account. The credit union took the best features from prior checking accounts, eliminated most fees and boosted the interest rate to provide a low-cost, high-feature account.

McGraw-Hill Federal Credit Union’s S3 Checking Prime account scores high marks for having a low minimum opening balance requirement, no monthly maintenance fees, and no ATM fees across a wide network of ATMs. Fees for out-of-network ATMs are low or nonexistent as well, as the average user is unlikely to burn through the allowance of 20 out-of-network fee-free withdrawals every month. Overdraft fees are high, but can be minimized by opting into the credit union’s overdraft protection service.

On the interest rate front, S3 Checking Prime’s base rate is about three times the national average, while the rate for deposits of $25,000 or more jump to more than six times the national average. Those rates are good enough to be competitive with the best available rates of checking accounts at the top online banks.

The ATM network used by the McGraw-Hill Federal Credit Union is extensive and offers plenty of opportunities for members nationwide to access surcharge-free ATMs. No fee rebate is offered for non-network ATMs, however.

A nice benefit of the account is the CardNav app, giving members a high level of control over the usage of their ATM cards. This can help minimize instances of fraud.

McGraw-Hill Federal Credit Union’s savings account options

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How McGraw-Hill Federal Credit Union’s savings accounts compare

McGraw-Hill Federal Credit Union essentially only has one real savings account, the S3 Prime Savings account, since the other accounts serve specific purposes. However, it packs important features into a single package. For starters, the interest rate paid is outstanding. Unlike many other financial institutions, McGraw-Hill Federal Credit Union pays this rate starting at just $100, and the rate remains high for all deposit levels. Not only is that rate nearly 10 times the national average, it’s within shouting distance of the highest online savings rates available.

The credit union’s Share Savings account is a requirement for membership, but doesn’t offer many attractive features beyond that. The Holiday Club Savings account can be a good option for savers who might not have the willpower to separate their savings for future needs, like holidays or vacations. However, the rate is significantly below the Prime Savings account, so those with the discipline to keep these amounts separated would be better served keeping that money in the higher-paying account.

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How McGraw-Hill Federal Credit Union’s CD rates compare

McGraw-Hill Federal Credit Union standard CD rates are below-average. Across the board, CD rates fall below national averages by maturity. However, promotional rates are quite good. In every instance, they exceed the national averages. They are not good enough to compete with the absolute best CD rates available from competitors, but they are much better than the standard CD rates.

The $1,000 minimum to buy a CD is fairly standard, although some competitors offer minimums of $100. The early withdrawal penalty is costly for those redeeming shorter maturities. However, for longer-term CDs, the McGraw-Hill Federal Credit Union early withdrawal penalty is lower than at some other financial institutions, where a full years’ worth of interest is often charged.

McGraw-Hill Federal Credit Union’s money market account options

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How McGraw-Hill Federal Credit Union’s money market accounts compare

The Ascend Money Market account, available to new customers, is far better than the original, Regular Money Market account that the credit union is still maintaining for existing customers. Rates are far better for every deposit level, coming in at about four to five times the national average. However, they are still a fair stretch below the highest available money market rates at other banks.

The account minimum on the Ascend Money Market account is fairly high, however. Even worse, a stiff monthly fee applies to those that fall below the $5,000 account minimum. Considering these costs and the interest rates paid, most customers would be better served avoiding the money market accounts at McGraw-Hill Federal Credit Union altogether and instead using the institution’s S3 Prime Savings account.

McGraw-Hill Federal Credit Union’s IRA rates

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How McGraw-Hill Federal Credit Union’s IRA rates compare

McGraw-Hill Federal Credit Union’s IRA CD rates are the same as their non-IRA rates, so the same comparisons apply. In its IRA accounts, rates for McGraw-Hill Federal Credit Union’s standard CDs are below-average, falling below national averages for every maturity. The promotional rates, on the other hand, are above average, exceeding the national average in every instance. Although they are better than the rates for standard maturities, they are not good enough to compete with the absolute best IRA CD rates available from competitors.

As far as the credit union’s IRA savings accounts go, its premium IRA savings account is the only real option. However, rates are quite low. For deposits of $250,000 or more, the tiered rate kicks up to a level just above the national average. However, the rate for smaller deposits are below average. Rates for even the shortest CD maturity of 3 months are significantly higher.

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John Csiszar

John Csiszar |

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

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Source: https://www.magnifymoney.com/blog/reviews/mcgraw-hill-federal-credit-union/

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