Credit unions often get a bad rap for a lack of checking and savings options or outdated digital banking platforms. Many credit unions have the chops to prove that thinking wrong — and none more so than Alliant and Connexus, two institutions with varied accounts, excellent rates and slick online tools.
Both of these credit unions offer many ways to become a member and good customer service. Here’s a look at how their services compare.
Checking accounts
| Alliant High-Rate Checking | Connexus Xtraordinary Checking |
|
|---|---|---|
| Monthly fees |
$0 | $0 |
| Minimum opening deposit | $0 | $0 |
| Account qualifications | Sign up for free eStatements and make at least one direct, ATM, or mobile deposit per month | Enroll in free eStatements and do each of the following at least once per month: • Use your debit card at least 15 times • Receive one direct deposit • Have at least one third-party online bill payment clear your account |
| Interest on balances | 0.65% APY | 1.75% APY (up to $25,000) |
| ATM network | Over 80,000 free ATMs, and Alliant will reimburse fees incurred at out-of-network machines, up to $20 per month | Over 50,000 free ATMs, and Connexus offers ATM surcharge rebates of up to $25 per month |
| Overdraft fee | $25 | $29.95 |
» COMPARE: NerdWallet’s best credit unions
Overview
Neither institution charges a monthly maintenance fee, a welcome change for customers used to paying up to $15 each month just to park their money with a large bank, nor do they require a minimum deposit. There are some hoops prospective members will have to jump through to open an account, more so at Connexus. But they should be fairly easy to meet, and Connexus’ 1.75% APY on balances less than $25,000 should serve as ample incentive, especially considering the national average is just 0.04%.
Alliant’s 0.65% APY may look small here, but it applies to all balances. At Connexus, balances over $25,000 earn an interest rate of just 0.25%. Connexus doesn’t offer quite as many ATMs as Alliant, but since it is a member of the MoneyPass and Co-op networks, you shouldn’t have much difficulty finding a surcharge-free cash machine.
Both credit unions offer basic checking accounts with fewer requirements, but neither one bears interest.
Savings accounts
| Alliant High-Rate Savings | Connexus Personal Savings | |
|---|---|---|
| Monthly fees | $1, or $0 when members opt in to free eStatements | $0 |
| Interest on balances | 1.00% | 0.25% |
| Minimum opening deposit | $5, which Alliant will pay for you | $5 |
| Automatic transfer from linked checking | Yes | Yes |
Overview
When looking for a new savings account, low fees and high rates should be your goals. Alliant earns top marks in both categories. Its 1% interest rate is considerably higher than what Connexus offers, and even tops the rates offered by some of the leading online savings accounts. The fact that Alliant will pay you $5 to open an account is an added bonus. Just be aware that you’ll have to keep at least $100 in the account to trigger the 1% interest rate.
Connexus offers a money market account with tiered interest rates. However, none of them are above 1%, apart from the 1.15% APY for balances over $100,000.
Both credit unions allow for automatic transfers between checking and savings accounts, which is a big plus for members who want to stash away money without having to do so manually.
Share certificates
| Alliant | Connexus | |
|---|---|---|
| Minimum opening deposit | $1,000 | $500 |
| APY on 1-year term | 1.15% ($100-$24,999) 1.20% ($25,000+) |
0.65% ($500-$9,999) 1.10% ($10,000+) |
| APY on 3-year term | 1.50% ($100-$24,999) 1.55% ($25,000+) |
1.00% ($500-$9,999) 1.75% ($10,000+) |
| APY on 5-year term | 2.10% ($100-$24,999) 2.20% ($25,000+) |
1.50% ($500-$9,999) 2.00% ($10,000+) |
Overview
Share certificates at Connexus come with a lower minimum deposit requirement, but its rates too are lower. The exception is a three-year certificate for balances over $10,000, which earns a slightly higher rate at Connexus than Alliant. The longest term length you can get at either credit union is five years.
Generally, Alliant’s rates outshine those of its competitor. You also won’t have to open a checking account to take out a share certificate at Alliant, as you would at Connexus. You will be asked to open a savings account, but given Alliant’s excellent rates, that may not be bad thing if you’re serious about setting money aside.
Technology
Alliant’s website is clean and provides clear overviews of its products. Connexus’ website isn’t quite as polished, and while most information is easy enough to find, minimum opening deposit requirements and additional information about ATMs required a call to its customer service team. On the other hand, Connexus has an online chat function, which Alliant does not.
Both credit unions have strong online and mobile banking platforms. Both offer online bill pay, and Alliant members can deposit up to $20,000 per day using a remote check deposit tool, which is much more than what most banks and credit unions allow, Connexus included.
Connexus offers a handful of online tutorials on how to use their services, which will come in handy for customers who are new to digital banking.
» COMPARE: NerdWallet’s best banks and credit unions for mobile banking
Customer service
Alliant has a handful of branches scattered across the U.S., with most located in big cities like Chicago, Denver and Houston. Connexus has physical locations in parts of Ohio, Minnesota and Wisconsin. But just because you don’t live in these parts of the country doesn’t mean you won’t be able to join. A one-time donation of $5 to the Connexus Association, a charitable organization, will earn you membership to that credit union, while a $10 donation to Alliant’s favored charity will get you in there.
Even if you live thousands of miles from the nearest branch, both institutions are easily reached by phone or email, and both maintain active Twitter accounts to respond to customers’ questions. Though Connexus uses the Co-op Network’s ATMs, neither credit union takes part in the network’s shared branches, so you’ll want to be fairly certain that all your needs will be met online or over the phone.
The verdict
Although Alliant and Connexus each have their strengths and weaknesses, the hits far outweigh the misses at both credit unions. If you’re looking to move less than $25,000 into a new interest-bearing checking account, Connexus will be your best bet. If, on the other hand, you want to invest in a savings account or share certificate, go with Alliant. Whichever credit union you choose, high fees and low rates will soon be distant memories.
Tony Armstrong is a staff writer at NerdWallet, a personal finance website. Email: tony@nerdwallet.com. Twitter: @tonystrongarm.
from NerdWallet
https://www.nerdwallet.com/blog/banking/alliant-credit-union-vs-connexus-credit-union/
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