CON-NEXUS CREDIT UNION

ADVANTAGES

Connexus Credit Union pays the highest interest rate on rewards checking market accounts with high balances in our review

DISADVANTAGES

 It pays the lowest interest rate on savings accounts in our review.

VERDICT

It's a great option for your online banking, particularly if you frequently use a debit card and want to earn interest on your checking balance.

Connexus Credit Union ranks near the top of our list of internet-only banks because it offers a full range of banking services, competitive interest rates and ATM fee reimbursements. Like all credit unions, membership is required. If you don't meet the employment or residential qualifications for membership, you can join the Connexus Association, a charitable organization, by donating $5.

This online credit union extends credit services including mortgages, home equity loans, credit lines and auto loans. It also extends a variety of credit cards, including rewards cards and student credit cards. Many of its deposit accounts have interest rates that are competitive with online banks, and its Xtraordinary Checking account pays the highest interest rate on checking accounts in our review. Because it's a rewards checking account, you're required to meet certain requirements each month in order to earn interest, including making 15 debit card transactions, having one direct deposit and paying one bill online. You're also required to sign up for eStatements. However, there are no monthly fees and no minimum balance requirement. If you don't meet the requirements, you still earn interest, just at a much lower rate.

Connexus Credit Union's savings account offers the lowest interest rates in our review. However, because you can open an account with $5, the minimum balance requirement is also $5 and there are no monthly fees, it's a very accessible account. The interest rate for money market accounts are tiered based on deposit amount. There's no minimum deposit to open an account, but to earn interest you must have a balance over $1,000. Deposits over $100,000 earn the best money market interest rate in our review. The shortest CD term offered by Connexus Credit Union is six months, and the interest rate is lower than the top online-only banks offer. Its 60-month CD is also lower than average if your deposit is under $10,000. Deposits over this amount earn average interest rates. The minimum deposit for a CD is $500.

Your money is safe at Connexus Credit Union because it's NCUA insured, which is the credit union equivalent to the FDIC insured status of the online-only banks in our review, meaning that your funds are recoverable in the event that the credit union fails. Your online accounts are protected using two-factor authentication, and you can set up notifications to alert you when certain activities occur on your account. You can contact customer support via phone during business hours, by email or through live chat on the online credit union's website.

Mobile banking is available from Connexus Credit Union, but you're required to have a checking account with the credit union and have a credit score over 640 to be able to use the mobile deposits feature. Links to its mobile app on iTunes and Google Play are available on Connexus Credit Union's website.

This online credit union provides free online statements and accepts direct deposit. It offers free money management software called BudgetSmart, a monthly budget worksheet and a variety of financial calculators. Online transfers are free, and it takes between one and four days for your deposited funds to be fully available to you, which is slightly longer than average. Connexus Credit Union doesn't partner with an ATM network to offer you surcharge-free ATM access, but with its rewards checking accounts, it offers surcharge rebates up to $25 per month for transactions made at ATMs in the U.S.

CONCLUSION

Connexus Credit Union is a great option for your online-only banking because it offers the complete gamut of banking services as well as competitive interest rates and no fees on its deposit accounts.