Tuesday, 24 November 2020

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

Northwest Federal Credit Union Review: Checking, Savings, CD, Money Market and IRA Accounts
17 Oct
9:26

Northwest Federal Credit Union’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.75%

Savings

Northwest Federal Credit Union Kasasa Saver

2.15%

CIT Bank Savings Builder

LEARN MORE Secured

on CIT Bank’s secure website

Member FDIC

1.31%

CD Rates

Northwest Federal Credit Union 1 Year Share Certificate

2.55%

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

1.61%

CD Rates

Northwest Federal Credit Union 3 Year Share Certificate

2.65%

American Express National Bank 36 Month CD

on American Express National Bank’s secure website

Member FDIC

2.78%

CD Rates

Northwest Federal Credit Union 5 Year Share Certificate

3.00%

American Express National Bank 60 Month CD

on American Express National Bank’s secure website

Member FDIC

Northwest Federal Credit Union checking account options

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How Northwest Federal Credit Union’s checking accounts compare

Northwest Federal Credit Union offers two checking accounts that are worth serious consideration: Kasasa Cash® and Kasasa Cash Back®. Kasasa Cash® earns one of the best interest rates you will find for a checking account. Kasasa Cash Back® earns a generous 2% cashback rate on all your purchases, which is competitive even with credit cards.

The only downside is that to qualify for these benefits, you need to make at least 12 purchases per month on the debit card. This can be annoying for someone who rarely buys things on their debit card.

The other two checking accounts at Northwest Federal Credit Union are less attractive. Elite Checking requires a massive $5,000 minimum balance to avoid the monthly fee and yet pays less interest than Kasasa Cash®. Even though Choice Checking is completely free, it doesn’t offer any benefits.

You would be making a good choice by opening either of the Kasasa Checking accounts. But if you want to see how they stack up against the competition, check out these other excellent checking accounts.

Northwest Federal Credit Union savings account options

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How Northwest Federal Credit Union’s savings accounts compare

In our opinion, the best savings account at Northwest Federal Credit Union is its Youth Savings account. It offers one of the best interest rates you will find on deposits up to $1,500, doesn’t charge a monthly fee and will give your child a $25 bonus once they save $500.

The savings accounts for adults are not as good. While the Kasasa Saver® account pays an OK rate, you need to be actively using a Kasasa checking account to earn it. The other savings accounts pay very little.

If you want a savings account for yourself without adding a checking account, you may be better off using these top savings account options instead of Northwest Federal Credit Union.

Northwest Federal Credit Union CD rates

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How Northwest Federal Credit Union’s CDs compare

Most of Northwest Federal Credit Union’s CDs do not pay enough interest to be truly competitive. The 30-month Dream On certificate is the only exception and could be worth a look if you want something for 30 months. The other fixed CDs pay an OK rate but fall short of the best CDs on the market today.

While the Add-On CDs give you the flexibility to add extra money whenever you want, it comes in exchange for a steep interest rate drop, a trade-off we don’t recommend. We do like the Youth Add-On certificate because it’s not as common to see CDs for people younger than 18.

For adults, we suggest you either use the Dream On certificate or look elsewhere to get a better return.

Northwest Federal Credit Union money market account option

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How Northwest Federal Credit Union’s money market account compares

There are some solid features about the Northwest Federal Credit Union Money Market account: It doesn’t charge a monthly fee, doesn’t have a minimum balance requirement and you can open one up for any amount.

It’s a shame that the interest rates aren’t better. While you earn more with this account than the pitiful rates found at large national banks, you can earn much more with these top money market accounts.

In fact, this Money Market account pays less than some of Northwest Federal Credit Union’s checking and savings accounts. Because of that, we’d recommend skipping the money market account and focusing either on the higher-earning accounts at the credit union or opening a money market account elsewhere.

Northwest Federal Credit Union IRA account options

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How Northwest Federal Credit Union’s IRA CD rates compare

The Northwest Federal Credit Union IRA CD rates are just OK. It’s disappointing that the best CD at Northwest Federal Credit Union, the 30-month Dream On CD, cannot be used as part of an IRA. Only the regular CD rates are available and these are not as impressive.

The IRA Savings account could be worth a look if you want to begin saving for retirement but have very little money for your first deposit, since this IRA does not have a minimum deposit requirement. Most IRAs require at least a few hundred — and often several thousand — dollars to get started.

Once you have enough money saved up, these top IRA CDs are a better option because they pay significantly more than what’s available at Northwest Federal Credit Union.

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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/northwest-federal-credit-union/

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