Lauren Graves

SchoolsFirst Federal Credit Union CD Rates – Up to 4.35% APY

Written by: Lauren Graves
Published January 30, 2023

Founded in 1934 by a group of California school employees, SchoolsFirst Federal Credit Union is a credit union for educators and their families. SchoolsFirst FCU is the fifth largest credit union in the United States and the largest in the state of California, controlling more than $25 billion in assets and serving over one million members. On average, members save more than $482 annually by choosing this credit union.

Membership is restricted by employment and geography. If you want to join this credit union, find out here how to become a member and if the CDs are worth it in this article.

Certificates of Deposit

image credit: schoolsfirstfcu.org

Certificates of deposit, CDs, or share certificates (for credit unions) with SchoolsFirst FCU can be opened with a deposit of just $500. These accounts are federally insured by the NCUA up to $250,000 per account, per depositor.

The interest rate for this product is dependent on both the balance of your account and the length of your term. Longer terms and higher balances will earn a higher interest rate than shorter terms and lower balances.

Take a look at the current rates available in the table below or on their website.

CD Rates

Term	$500 – $19,999	$20k – $49,999	$50k – $99,999	$100k+
30 days	0.80%	0.85%	0.90%	0.95%
3-5 months	2.45%	2.50%	2.55%	2.60%
6-11 months	2.95%	3.00%	3.05%	3.10%
12-17 months	3.45%	3.50%	3.55%	3.60%
18-23 months	3.75%	3.80%	3.85%	3.90%
24-35 months	3.80%	3.85%	3.90%	3.95%
36-47 months	3.95%	4.00%	4.05%	4.10%
48-59 months	4.05%	4.10%	4.15%	4.20%
60 months	4.20%	4.25%	4.30%	4.35%

Right now, the national average rate for a 6 month CD is 0.81%, for a 12 month CD is 1.28%, for a 24 month CD is 1.21%, and for a 60 month CD is 1.21%, according to recent FDIC data.

Jumbo certificates, classified as those with balances greater than $100,000 earn the highest rates albeit not by much. As interest rates continue to rise, this may become more pronounced.

You can fund this account via payroll direct deposit, ACH bank transfer, internal transfer from a savings or checking account, or check payment mailed to:

SchoolsFirst FCU

P.O. Box 11547

Santa Ana, CA 92711-1547

Compounding Interest

Interest is compounded daily and can be credited back into the certificate monthly for maximum earnings or paid out regularly to a separate account. You can link a Regular Share Savings or Share Draft Checking account to receive dividend payments or opt to receive this via check in the mail.

Grace Period and Early Withdrawal Penalties

When your account reaches maturity, it will automatically renew at the same term you applied for. The grace period is ten calendar days. During this time, you can withdraw funds from your account or make changes to your certificate without incurring the following early withdrawal penalties:

Early withdrawal from any account within six days of opening it will cost you seven days’ interest
Early withdrawal from a term of 30 days or less will incur a penalty equal to 30 days’ interest
Early withdrawal from a term of between 30 days and 18 months will incur a penalty equal to 90 days’ interest
Early withdrawal from a term of greater than 18 months will incur a penalty equal to 180 days’ interest

This fee can be waived one time for exceptional circumstances such as the death of the account holder.

You may use the balance in your Share CD as collateral for a Certificate-Secured loan. The certificate will continue earning interest while you have the loan unless the funds are needed for repayment. These loans have lower interest rates and are easier to qualify for than other personal loans. The interest rate is equal to 2.5% above the rate on your Share Certificate, which is significantly lower than even the lowest rate you can qualify for with the standard personal loan.

College Saver Share certificate

SchoolsFirst also offers a 12-Month College Saver Share certificate. This account requires a minimum opening deposit and balance to earn interest of $200. The interest rate for this account is equal to the interest rate for a standard 12 month Share Certificate, which is currently 3.55% APY, regardless of the balance.

These CDs are available to members under the age of 18 who are part of the Junior Varsity or Varsity Clubs. One per person. When the account holder turns 18, the certificate will automatically convert to a standard CD when it matures or to a Share Savings account if the balance is less than $500.

Unlike a standard CD, members are permitted to make deposits of at least $25 into this account at any time. The same early withdrawal penalties apply for 12-Month College Saver Share certificates. There must be at least one parent or legal guardian as a joint owner for this account, who is required to sign off on any withdrawals or changes.

Besides the College Saver certificate, SchoolsFirst FCU only offers standard CD accounts at this time. If you’re looking for a flexible, bump-rate, or no-penalty certificate, you’re going to have to go elsewhere.

Consumer Reviews

SchoolsFirst FCU does really well in customer review platforms, especially for a credit union. Many customers praise the low fees and appreciate the variety of specialized options for teachers from loans to Summer Saver and Paycheck Planner savings accounts. SchoolsFirst is also known for having prompt and helpful customer service representatives and welcoming staff members.

Especially if you live near a branch location and plan to do some of your banking in person, you can expect excellent, personal support and an overall positive experience with this credit union. There are very few reviews that state otherwise.

The online platform is user-friendly and easy to navigate, so you can do as much of your banking digitally as you want. The mobile app could be better. It currently has a rating of 4.6 out of 5 stars on Google Play but only 3.2 out of 5 stars in the App Store. For Android users, the app is fine if nothing particularly special, and it’s pretty reliable and convenient to use. For Apple users, the app is not always responsive and different functionalities are difficult to use or prone to glitches.

There are 69 SchoolsFirst FCU branch locations across California including in major cities like Santa Ana, Anaheim, Long Beach, and more. This credit union has more than 28,000 in-network ATMs (including co-op ATMs) across the country that members can use without paying a surcharge. Use this ATM/Branch Locator to find a location near you.

To get in touch with customer support if you don’t want to visit a branch, you have a lot of options. You can call the member contact center at 800-462-8328 between 7 am and 7 pm Monday through Friday and 9 am and 3 pm on Saturday or the TellerPhone for your everyday banking needs at 800-540-4546 or 714-258-4100. TellerPhone is available 24/7 and it is an automated phone service.

Alternatively, you can log into your account and send a secure message if your question or concern is not urgent. This may take a few business days. For faster responses, use the chat function on the SchoolsFirst FCU website. This is available between 7 am and 7 pm Monday through Friday and 9 am and 3 pm on Saturday.

How to Become a Member

You are eligible to join this credit union if you are a current or retired school employee, including teaching staff and administrative staff. You are also eligible to join if you meet one of the following criteria:

You are related or married to someone who is a member of SchoolsFirst FCU
You work at a company that serves schools or districts of California
You are a college student who is going to school for a teaching degree and required to student teach

As a specialty credit union for educators, a lot of people aren’t going to qualify for membership and there is no workaround for this (like becoming a member of a nonprofit).

If you qualify to become a member, you can complete the application in person or online. You will need to provide proof of employment or enrollment (if you’re in college) and open a Share Savings account with a deposit of at least $5.

This savings account will establish your membership with SchoolsFirst. It earns an interest rate of 0.10% on balances over $5 and there is no monthly fee. Unlimited withdrawals are permitted.

If you are under the age of 18 and applying for membership, you will complete a Junior Varsity and Varsity membership application. You will need to make a deposit of at least $5 to establish membership and $25 if you’re opening a checking account. Youth membership is required to qualify for SchoolsFirst 12-Month College Savers share certificates.

Once you successfully join, you’re a member for life even if you retire, change professions, or move to a different state or area.

Final Thoughts

SchoolsFirst FCU is a credit union for people who are tired of working with big banks and looking for a more personal experience. If you qualify for membership, you will receive great customer service whether you are banking in person or online. There are CD accounts for both short- and long-term savings goals and even an option for college students.

Overall, we recommend SchoolsFirst FCU to people who value working with credit unions and are looking for CDs with above-average rates and many terms to choose from. But if finding the best rates is your bottom line, check out the other CDs we’ve reviewed to find one that’s a better fit.

I Bonds Rates – Now 6.89% APY!

Written by: Lauren Graves
Published January 22, 2023

You don’t need to be told that we’re living in unprecedented times. From sharp GDP growth to record inflation rates, we’re living in an economy that is expanding and changing rapidly.

If you’ve been following the bond market at all, you know that the Treasury Department made a shocking announcement about I bonds in November of this year.

Here, we’re going to answer questions you may have about I bonds from what they are to how to buy them.

Let’s dig in.

What Are I Bonds?

Series I savings bonds or I bonds are government-issued debt securities that accrue interest at a rate adjusted for inflation twice a year. Rather than having a single interest rate used to determine your return, I bonds have two: an inflation rate that changes every six months with the economy and a fixed rate that will not change throughout the entire life of the bond. These rates combine to give you a composite rate.

On November 1st of 2022, the U.S. Treasury Department announced that I bonds will earn a variable rate of 6.89% for the next six months through April 2023.

This new rate will apply to all new I bonds issued in the next six months before it is adjusted again at the beginning of May 2023, at which time the variable rate may increase or decrease.

These bonds are considered to be incredibly safe investments because there is no risk of value depreciation. Interest accrues and compounds semiannually (every six months) for up to 30 years or until cashed out. Earnings are automatically deposited back into the bond. I bonds do not require high minimum purchases and offer tax advantages and protection against inflation.

Current Rates

The variable semiannual inflation rate for I bonds is 6.89% and the fixed rate is 0.00% (which has been the case for the past several years).

All new bonds issued between now and April 2023 and existing bonds will earn 6.89% interest.

As of January 2023, the national average rate for an interest-bearing savings account is 0.33% and for a 1-year CD is 1.28% APY according to recent FDIC data. At the top digital banks, the best you’ll get on a 1-year CD is about 4.50% APY.

As you might expect, there is no way to tell for sure what the inflation rate will be six months or a year from now. May 2023 may bring a much lower earnings rate depending on inflation, which is expected to slow in the next six months.

Who Are I Bonds for?

If you are looking for somewhere safe to park your cash, these bonds may be for you. Many financial advisors and investment experts are recommending these securities to help hedge against inflation. If you can afford to lock some money up for at least five years (to avoid the early withdrawal penalty), an I bond is a good way to guarantee a small return.

Series I savings bonds tend to be best for investors seeking low-risk investments, but they shouldn’t be your only investment. They are good for medium- or high-net-worth individuals who want to diversify their portfolio and lower net worth individuals who want to secure a small portion of their wealth after maxing out contributions to a retirement account.

You are eligible to purchase an I bond if you meet one of the following requirements:

You are a United States citizen living in the country or abroad
You are a United States permanent resident
You are a civilian employed by the United States anywhere in the world

Children under the age of 18 may qualify to own an I bond if purchased on their behalf by an adult. Parents and adult custodians can open a TreasuryDirect account for a child and use that to purchase I bonds, making the child become the bond’s beneficiary.

It is common for I bonds to be used to help pay for education and retirement or gifted to younger individuals. Using I bonds to pay for education comes with tax benefits. Any bonds you purchase for yourself count toward your own annual purchase limit but bonds purchased as a gift do not. When you buy a bond as a gift for someone else, it counts toward their limit.

There are electronic and paper bonds. Electronic bonds are available in penny increments of $25 or more and paper bonds are available in denominations of $50, $100, $200, $500, and $1,000.

Advantages

The main advantage of I bonds over other investment vehicles is that they freeze your money and thus protect it from losing value due to inflation for as long as it is still earning interest.

I bonds are also one of the most secure investments you can make. The U.S. Treasury has never defaulted on bonds before, so there is virtually no risk of bond holders losing their principal.

Another pro is that you do not have to pay state and local taxes on interest and you can avoid federal taxes too. There are no fees associated with purchasing or cashing out I bonds.

I bonds are an ideal method for saving for education. In fact, many people consider them to be good alternatives to 529 savings plans.

I Bonds vs. EE Bonds and Treasury Inflation-Protected Securities

Another type of bond you can purchase from the U.S. Treasury is a Series EE savings bond or EE bond. EE bonds share many similarities with I bonds: they mature after 30 years, are sold at face value, and earn interest monthly.

The biggest difference between EE bonds and I bonds is that EE bonds earn a fixed interest rate and I bonds earn a variable interest rate that is dependent on inflation. EE bonds guarantee a return equal to double your principal investment after 20 years (adjusted if needed by the Treasury Department), but I bonds offer no earnings guarantees.

Which Treasury bond is best depends on the market. If inflation rates are high or expected to increase, I bonds will likely end up earning more interest over their lifetime. But if inflation rates are fairly low, EE bonds will likely earn more interest. Given how much inflation has increased this year, I bond holders are coming out on top.

Treasury Inflation-Protected Securities or TIPS are also similar to I bonds. TIPS are designed to hedge against inflation as well, but they differ from I bonds in several important ways.

First, TIPS are riskier because the principal is adjusted for inflation and deflation. You lose principal if the U.S. economy goes into a deflationary period and gain principal if the U.S. economy goes into an inflationary period. TIPS are available in terms of 5, 10, and 30 years and purchased at auction rather than at face value. You can purchase between $100 and $5 million. Rates for TIPS change and you must visit a Treasury auction to bid.

Rather than earning interest monthly, TIPS earn interest just twice a year at a fixed rate. Interest is paid on the adjusted principal until the account reaches maturity. Unlike I bonds, you can sell TIPS before they mature. TIPS and their interest are exempt from state and local tax but subject to federal tax.

Considerations

There are a few important considerations to keep in mind when purchasing I bonds

The first is that I bonds have a low minimum purchase requirement. You can open an electronic I bond with as little as $25 and a paper I bond with as little as $50 (note that you can no longer purchase paper bonds at banks).

You can purchase up to $10,000 in electronic I bonds per calendar year and up to $5,000 in paper bonds. If you purchase an I bond as a gift, that amount will not count toward your annual purchase limit. Instead, it will count toward the recipient’s limit, and they will also be the one who is responsible for paying taxes on it.

Series I savings bonds are issued at cash value. Your bond will never be worth less than you paid for it and it is not possible to lose money on this investment. (There is no guarantee that you will earn money, but you will not lose any.)

If you decide to cash in your I bond before it matures, you may do so without incurring a penalty if you wait five years to do so. If you choose to cash out within five years of opening the bond, you will pay an early withdrawal penalty equal to the last three months’ interest. You can keep your bond open for as long as you like, but it will not continue to earn interest after 30 years. You must keep your bond for a minimum of one year, at which time it becomes liquid.

I bonds themselves are tax-exempt but the interest you earn is subject to federal income tax. You may enjoy additional tax benefits if you use your bond to finance education under the Education Savings Bond Program.

How to Buy I Bonds

Ready to join the wave of people purchasing I bonds for the first time at this incredible rate?

First, decide whether you will purchase an electronic or paper bond.

To purchase an electronic bond, visit the U.S. Treasury website at TreasuryDirect.gov.

You will need to create a TreasuryDirect account using your tax identification number and an email address.

At this time, you will link a bank account and personalize your profile. From your account, navigate to the bonds purchasing page and enter the amount you would like to purchase. Register the I bond in the name of its intended recipient (if you are purchasing for someone other than yourself, provide their information).

To purchase a paper bond, you will need to use your IRS tax refund. This is the only way to purchase paper I bonds. You will use Form 8888 to allocate your refund to be used for the purchase of a U.S. Treasury bond and specify that you want an I bond. You used to be able to purchase paper I bonds at banks and credit unions, but this is no longer possible.

You can purchase up to $10,000 in electronic I bonds per year and use your tax refund to purchase up to $5,000 worth of government I bonds per year. These limits can be combined for a total of $15,000 in I bonds.

How to Cash Out

When you’re ready to cash out your electronic I bond, visit the TreasuryDirect site again and navigate to the ManageDirect page. From there, link the bank account you would like to send the funds to and transfer the money.

To cash out your paper I bond, visit a bank or credit union and present your bond and identity verification documents.

Final Thoughts

While you won’t get rich from an I bond alone, this investment is a sound one, especially at the current earnings rate. We recommend I bonds to anyone looking for a safe investment to add to their portfolio. This type of security is ideal for conservative investors, not aggressive investors looking for an opportunity to grow their wealth dramatically. You do not risk losing your investment when you purchase an I bond.

The more you can afford to spend at the current earnings rate of 6.89%, the better, but any amount will likely be a worthwhile investment. When the bond turns liquid after a year, you’ll probably end up with more cash than you would have with another deposit account if you choose to cash out.

Marcus Bank Online Savings – Now 3.30% APY + $100 Bonus!

Written by: Lauren Graves
Published January 21, 2023

[📌 Update January, 2023 – Marcus Bank is now offering a $100 cash bonus when you open a new online savings account with $10,000 (or add $10k to an existing one). That’s essentially a 1% bonus just for signing up! Offer valid through 2/15/2023. See more below.]

You’ve surely heard of Goldman Sachs, the global investment services firm, but you might not be familiar with their digital subsidiary, Marcus.

Marcus by Goldman Sachs is an online-only, FDIC-insured bank offering personal loans, a high yield online savings account, and CDs. Named after Goldman Sachs pioneer Marcus Goldman and founded in 2016, Marcus Bank’s online savings account is regularly among the highest yielding accounts available nationwide.

To see if this account is right for you, continue reading our review below.

Online Savings Account Rate + Details

image credit: marcus.com

The Marcus savings account comes with zero fees and no minimum deposit requirement.

Online Savings Account Rate

Min Deposit	APY
$0	3.30%

APY = Annual Percentage Yield

To put this yield into perspective, the current average for a money market account and a savings account sit at just 0.33% APY and 0.44% APY, respectively, according to recent FDIC data.

That said, there are now a handful of FDIC-insured online banks offering above the 4.00% APY mark to start the new year.

$100 Bonus!

The $100 bonus is available to all new and existing customers that open and deposit $10,000 of new funds into an online savings account.

Here are the details:

Enroll in a Marcus Bank online savings account.
Deposit $10,000 of new funds to the account within 10 calendar days of opening it.
Maintain that balance for 90 consecutive days.

You must enroll by February 15, 2023. Get started here.

How to Open and Fund Your Account

To earn the noteworthy APY you just have to fund your account within 60 days of opening it, and maintain a positive balance after that.

There are four different ways you can make a deposit into this savings account.

You can:

1. link your savings account to an external bank account and transfer funds (Marcus won’t charge fees for this, but your other bank might),
2. set up direct deposit payments from your payroll or Social Security,
3. send a domestic wire transfer, or
4. mail a check to this address – Goldman Sachs Bank USA P.O. Box 4571 Carol Stream, IL 60197-4571

Once you’ve opened the account, you can move funds about via:

Wire transfer
Electronic transfer

📌 Important: Marcus features same day transfers from other banks to Marcus of $100,000 or less. Marcus will process transfers made through Marcus by 12 PM EST on a business day by 5 PM EST that same day. You will start earning interest from Marcus on the amount you transfer the day your request is received.

Compounding and Crediting Interest

Interest on the Marcus savings account is compounded daily and credited monthly.

Withdraws and Transactions

Per the standard and federally-enforced limit, you can make up to 6 transactions from a savings account per month for free. There is no excessive withdrawal fee, but you won’t be allowed to go over this limit. Some banks allow you to go over this limit but impose a fee for doing so.

Marcus does not offer a debit card or ATM card for their savings account, so you’ll have to transfer funds to another account if you wish to withdraw them.

Banking Experience and Customer Sentiment

There are no Marcus ATMs or in-person branches, which is typical of online banks but important to know.

There are also no Marcus ATM, debit, or credit cards, but there is the Goldman Sachs card. Goldman Sachs’ only credit card, the Apple card, had a rough start. When it first launched, the card drew heat for alleged gender discrimination in the algorithm used to assess a potential user’s credit and qualifications. With two high-profile corporations like Goldman Sachs and Apple teaming up to launch a card, this error was quickly spotted and users were turned off of the product by such an egregious glitch. But now that the media storm has mostly calmed and the issues have been addressed, the Apple card is considered a decent product for devoted Apple users.

User reviews of Marcus are about average, but the data is somewhat imprecise. This is because many users report about their experiences with the Apple card rather than with Marcus as a bank, so this leads to difficulty in condensing customer experience with the online bank. Nevertheless, the results that are in are as follows: out of 128 reviews on WalletHub, Marcus scored 3 stars out of 5. Out of 165 reviews on DepositAccounts, the bank landed, again, 3 stars. And out of 71 reviews on Trustpilot, Marcus scored about a 3.5.

When you bank 100% digitally, you always run the risk of not being able to have your problems solved in a timely manner and, in some cases, at all. Unfortunately, Marcus is no exception. Some customers have reported not being able to get in contact with customer service representatives when their accounts were temporarily and inexplicably locked and have expressed frustration with slow, unsatisfactory service.

Overall, it seems, customers are either highly satisfied or highly unsatisfied with Marcus, so this might be a case where you’ll want to see for yourself how accessible Marcus customer service is. You might try giving their help line a call before opening an account if you have any questions and see what that experience is like to get an idea of what you can expect, but of course, this isn’t a perfect measure. Customer Service can be contacted Monday through Friday from 8 am – 10 pm and Saturday to Sunday from 9 am – 7 pm ET or you can call (855) 730-7283 to get in touch with someone.

The Marcus online portal is said to be more user-friendly than most banks, which is important when you’re managing your money digitally. The app gets 4.4 stars on Google Play and 4.8 stars on Apple.

Fidelity Cash Management Account – Up to 2.21% APY!

Written by: Lauren Graves
Published January 10, 2023

Fidelity Investments Inc. is a multinational investment management corporation offering a wide range of personal and professional investment products and advising options.

This financial services company was established in 1946 and is now the fifth largest asset management firm in the world controlling more than $2 trillion in assets.

Rated the #1 online broker of 2020 by both Barron’s and Investor’s Business Daily, Fidelity is also considered to be an overall sound choice for cash management accounts by review publications and customers alike.

If you’re not familiar with cash management accounts, they are all-in-one accounts that combine features of savings accounts, checking accounts and investment accounts all in one place, with one institution.

Cash management accounts let you capitalize on convenience and security and this brokerage firm offers one with several notable perks. If you want a cash management account that can do more than the standard checking, savings, or investment account can, here’s what you’ll need to know about the cash management account offered through Fidelity.

About the Fidelity Cash Management Account

Fidelity Cash Management accounts are brokerage accounts, not bank accounts. This makes managing your finances easier by allowing you to both save and invest under the same roof.

That said, you can also use this much like you would a checking account since it offers:

ATM cash access,
a debit card,
the option for bill pay,
and unlimited check writing capabilities.

Your uninvested balance earns interest similar to an online savings account or you can choose to park your cash in other low-risk investment options like a money market account or CD.

Now let’s get under the hood and see how these accounts actually work.

Remember these are not deposit accounts nor bank accounts.

In fact, the cash you put in your Fidelity Cash Management account doesn’t actually stay with Fidelity at all (though it can be accessed through Fidelity).

Instead, Fidelity partners with other FDIC-insured banks, called Program Banks, and carries out what is known as “FDIC-Insured Deposit Sweep” or simply “Sweep” (a practice typical of cash management accounts).

Basically, Fidelity moves your money into different interest-bearing deposit accounts with other institutions so that it can leverage their FDIC insurance and maximize your coverage.

Your money will be swept into Program Banks chosen by Fidelity and you will be notified about which have been selected for you when you are presented with your Program Bank List. There are always going to be a minimum of five different banks available for Sweep, but exactly which ones are available to participate depends on demand and other factors.

This practice of sweeping makes it possible for Fidelity Cash Management accounts to be FDIC insured up to $1.25 million. Most deposit products are only insured up to $250,000, but because your money will be distributed across multiple institutions and insured separately by the FDIC, coverage can extend well beyond this typical maximum. However, the coverage limit per bank is still $250,000, which is why you may have up to five different Program Banks.

Fidelity will automatically sweep the first $245,000 of your cash management account balance into the first bank on your Program Bank List, reserving $5,000 for accrued interest, then the next $245,000 into your second bank, and so on. Just know that it is your responsibility to make sure that your cash is always within coverage limits at each Program Bank. If you do find that you’ve, for some reason, exceeded FDIC coverage limits or you wish to change one or more of your banks, call Fidelity at 800-931-9987 to update your Program Bank list as needed.

Remember that you are not a customer with Program Banks but with Fidelity. If you are already a customer with a Program Bank beforehand, keep in mind that your aggregate balance will be used to assess coverage.

You will also need a Fidelity investment account in order to open a Cash Management account.

Fidelity Cash Management Account Rate + Details

The Fidelity Cash Management Account has no minimum balance requirements and no monthly maintenance fees.

Rates

Balance	APY
$0 – $99,999.99	2.21%
$100,000 +	2.21%

APY = Annual Percentage Yield

To put this yield into perspective, the current national average for a savings account is 0.30% APY and just 0.05% APY for interest-bearing checking accounts, according to FDIC data.

That said, some online banks are now featuring APY’s above 4.00% and some brokerages offering savings accounts, like the E-Trade Premium Savings account are offering 3.25% APY. See more comparisons in the table below.

Interest compounds daily and credits monthly.

You can use this account to invest in Fidelity CDs, mutual funds, fixed-income instruments, or MMAs as well, but the current rates won’t be too enticing.

According to Fidelity, the Fidelity Cash Management account is meant to supplement, not replace, your Fidelity brokerage account, which does not allow for spending but has many more investment options to choose from.

The Fidelity Debit Card, issued by PNC Bank, can be used at any Fidelity ATM or out-of-network ATM worldwide and all ATM charges made from your cash management account will be fully reimbursed. It can also be linked to Apple Pay.

You can use your Cash Management account to enroll in Fidelity BillPay, write as many checks as you want, deposit checks, and make transfers between this and external accounts, and more—all at no cost to you.

How Does it Compare

There’s quite a few cash management accounts on the market to choose from and their feature sets and interest rates vary widely.

Below is our rundown of the most popular cash management accounts of 2021 benchmarked with Fidelity on top features and yield.

Institution/Account	FDIC insurance	Debit Card	APY
SoFi Money	$1.5 million	Yes	3.75%
Wealthfront Cash Account	$1 million	No	3.80%
Betterment Everyday Cash Reserve	$1 million+	Yes	3.75%
Aspiration Spend & Save	$2 million	Yes	5.00%
Affirm Savings	$250k	No	3.50%
Fidelity Cash Management	$1.25 million	Yes	2.21%

APY = Annual Percentage Yield

Many of the cash management accounts that come with a debit card also feature ATM fee reimbursements worldwide. The Fidelity Cash management account offers an unlimited amount of these but every institution and account is different. You’ll have to check with the institution’s account details page for more information.

Reviews and Customer Sentiment

Overall customer satisfaction is at 4.4 out of 5 stars on the Fidelity site. Customers appreciate how comprehensive Fidelity’s product lineup and website are and the general consensus is that the online banking platform is easy-to-use and does the job.

In terms of the cash management account, the disadvantages are that the product isn’t as competitive as it could be in terms of rates and APY and Fidelity doesn’t have many branches. In addition, there have been reports of transactions into and out of cash management accounts taking longer to go through than what is typical. Some customers have also expressed frustration in getting support from Fidelity.

The Fidelity Cash Management account was given a rating of 4.5 stars out of 5 on NerdWallet because it has good ATM coverage, ATM reimbursements, and no monthly fees, but the account is dinged for not earning a better rate of return.

There are less than 200 Fidelity Investor Centers or branches across the country. This limited in-person branch access might not be what you want from a bank, but Fidelity makes up for this in other ways. For one, customer support can be reached 24/7 and the Fidelity app is very highly rated on the App Store — 4.8 stars — and Google Play — 4.2 stars. Call (800) 343-3548 to reach a representative at any time or day of the week or reach out via the site’s convenient live chat feature.

Alaska USA FCU CD Rates – Now up to 3.50% APY!

Written by: Lauren Graves
Published December 22, 2022

If you’re looking for a federally insured credit union to open a certificate of deposit with, then you may want to check out Alaska USA Federal Credit Union’s CDs. They feature above average yields on many terms and come with a manageable minimum opening deposit requirement of just $500.

If you haven’t heard of Alaska USA Federal Credit Union, they are the 19th largest credit union in the nation and the largest credit union in all of Alaska. Headquartered in Alaska since their founding in 1948, this member-owned nonprofit serves more than 674,000 members across the country with branch locations in four states—Alaska, Arizona, California, and Washington—as well as over 55,000 ATMs worldwide.

This financial services cooperative was originally established to better meet the needs of federal civil service personnel transplants at the Alaska Air Depot, an Air Force base. Today, anyone that lives, works, or attends school in Alaska, Washington, or the counties of San Bernardino in California or Maricopa in Arizona can become a member.

Alaska Federal Credit Union CD Rates + Details

Alaska USA Federal Credit Union deposit account funds are federally insured by the National Credit Union Share Insurance Fund (NCUSIF) of the National Credit Union Administration (NCUA) up to $250,000. The NCUA is the FDIC equivalent for credit unions.

CD Rates

The minimum deposit for any Alaska USA CD term is $500.

CD Term	APY
1 – 2 months	0.15%
3 – 5 months	0.40%
6 – 8 months	0.60%
9 – 11 months	3.50%
12 – 17 months	1.00%
18 – 23 months	1.10%
24 – 35 months	1.20%
36 – 47 months	1.30%
48 – 59 months	1.40%
60 months	1.50%

APY = Annual Percentage Yield

As you can see Alaska USA Federal Credit Union structures the terms or durations of their deposits slightly differently than most banks or credit unions. They use a range of months rather than a specific amount. Other than this unique variance, their CDs come with fairly routine terms and conditions.

To put these rates into perspective, the current national average for a 12 month CD and a 60 month CD are sitting at 1.07% and 1.09% APY, respectively, according to FDIC data. That said, there are a handful of banks and credit unions with nationwide acceptance now offering yields above 4.25% and 4.50% APY, for the same respective terms.

Compounding and Crediting Interest

Interest is compounded and paid monthly for terms of one year or more and paid in full at maturity for terms of one year or less. If your balance drops below the minimum of $500, you will not earn interest on your account.

Grace Period

You’ll want to note that there is a grace period of 10 calendar days after renewal of a certificate for withdrawing funds without incurring fees. You will be charged 7 days worth of interest if you remove your deposit within six days of issuance (in accordance with federal regulations). Take a look at the rest of the early withdrawal penalties by term below.

Early Withdrawal Penalties

CD Maturity Period	Fee
< 90 days	30 days interest
91 – 365 days	90 days interest
366 – 729 days	180 days interest
730 + days	365 days interest

Alaska USA will deduct an amount equal to the total interest earned on your withdrawal since issuance if this is less than what you’d pay in the fees listed above (if the day’s interest fee is lower, you’ll pay that). So the faster you withdraw after opening an account, the less you’ll regret it (though early withdrawals should, of course, always be avoided if possible).

Partial withdrawals are not permitted if they cause your balance to dip below the account minimum. Read Alaska USA’s share account dis closure statement for more details. Alaska USA Federal Credit Union allows users to ladder multiple certificates as well as borrow funds against a CD.

Alaska USA Federal Credit Union Money Market Rates + Details

Though Alaska USA CD account rates are decent, their money market account rates are mostly substandard and average at best. As you will see, their highest-earning money market rates are right around the national average.

Alaska USA offers standard, super, and jumbo personal and business money market accounts. The more money you put into an account, the higher your APY. Account rates are as follows:

Money Market Rates

Balance	APY
$5,000	0.10%
$10,000	0.10%
$25,000	0.15%
$50,000	0.20%
$100,000	0.25%
$250,000	0.50%

APY = Annual Percentage Yield

The national average for a money market account sits at 0.29% APY, however, there are online banks offering yields above 4.00% APY on all balances following the FED’s latest rate hike on December 14th.

If you still decide to open a money market account with Alaska USA FCU, then you’ll want to know the following account details below.

If your account balance is less than $2,500, don’t expect to earn interest. But as long as it stays above $50, you’ll be good to go and won’t be charged the $5 maintenance fee. You can make up to six transactions out of an Alaska USA money market account per month (as stipulated by Federal Reserve Board Regulation D). However, this does not include transactions made in order to pay a loan. A $25 overdraft fee is charged for each excessive transaction over the six allowed by federal law.

Other Savings Accounts Offered by Alaska USA Federal Credit Union

Alaska USA Federal Credit Union offers a share savings account and a premium savings account.

A share savings account is granted to everyone that becomes a member of Alaska USA and deposits $5. This account type earns an exceptionally poor 0.05% interest and requires a minimum balance of $50 ($5 for those under 26 years old) to waive the quarterly maintenance fee of $5. This fee is also waived if you have another account such as a checking account or loan associated with your savings account.

For a much higher minimum daily balance of $10,000, you can bump your share savings account up to a premium savings account. This will earn you a 0.15% yield, but you’ll have to keep your balance up to stay in this bracket. But even a premium savings account is not especially high-yield.

You can access your savings account funds at any Alaska branch, ATM, or through online banking. Up to six transfers per month can be made from a savings account. Interest accrues and is paid quarterly.

There is also a health savings account option with rates that won’t be written home about. Balance brackets for this are:

Balance	APY
$50 – $999	0.05%
$1000 – $9,999	0.05%
$10,000 – $49,999	0.10%
$50,000 +	0.15%

APY = Annual Percentage Yield

You’ll need a minimum of $50 to open a health savings account. For an account of this type, these rates are not as bad as they could be given the current market, but you could do better elsewhere.

About Alaska USA Federal Credit Union + Eligibility Rules

Alaska USA holds more than $8.39 billion in assets and serves over 674,000 members. In 2018, the credit union saw 387 million transactions and 101,971 loans that totaled almost $4 billion. They approximated a return of about $198 per member in this same year.

Alaska USA has 74 physical branch locations in Alaska, California, Arizona, and Washington and 55,000 surcharge-free ATMs across the world. They have a Member Service Center that is accessible 24/7 and a mobile app, and they also participate in co-op shared branching with thousands of other credit unions. In short, you’ll never be without access to help or your accounts. For all branch and shared branch locations, visit this page. To search ATM locations, go here.

To qualify for membership you must meet one of the following criteria:

Any Alaska resident.
Any Washington state resident.
Anyone who lives, works or worships, or attends school in California’s San Bernardino County.
Anyone who lives, works or worships, or attends school in Arizona’s Maricopa County
A relative of someone that qualifies or
Affiliated with an organization served by Alaska USA

You get a share savings account just for signing up to become a member of Alaska USA Federal Union, and this is your share in the credit union. Membership is not restricted to those living in Alaska. But if you are an Alaska resident and need to travel outside of Alaska, your banking needs can be taken care of just about anywhere. Call the Member Service Center at (907) 563-4567 or (800) 525-9094 or visit a branch to apply.

BECU CD Rates – Now up to 3.87% APY!

Written by: Lauren Graves
Published December 21, 2022

BECU, the Boeing Employees’ Credit Union, is the fourth largest credit union in the United States by asset size and has over one million members nationwide.

BECU’s origins date back to the great depression when a handful of Boeing employees were forced to purchase their own tools in order to do their jobs in 1935. Because many of them found it difficult to purchase the required tools, they founded a credit union to help each other obtain credit and manage their individual financial burdens.

While eligibility for BECU used to be restricted to Boeing employees, today, any Washington state resident can join along with those who live, work, or own a business in qualifying Oregon and Idaho counties.

BECU’s standard CD rates, while still above the national average, are nothing to write home about. However, the Member Advantage rates are a little better. You can learn more about BECU and its Member Advantage program here.

BECU CD Rates + Account Details

BECU CD accounts are federally insured by the NCUA (FDIC equivalent for credit unions) up to $250,000.

This credit union’s savings products are unique in that they offer dozens of different rates and terms. Joining the Member Advantage program will entitle you to better rates on deposits and savings.

The BECU Member Advantage program, an exclusive eligibility tier, rewards premium rates and other perks to qualifying members of the credit union for checking and savings accounts, and this includes certificates of deposit. If you are eligible for a Member Advantage checking or savings account, you will receive higher rates of return on CDs. If you are not, here are the rates you will earn. (For more information about how to qualify for Member Advantage, see “About BECU Credit Union + Eligibility.”)

CD Rates (Without Member Advantage)

Term	APY	APY
Deposit Size	$500 – $49,999	$50k +
3 – 5 months	1.51%	1.56%
6 – 11 months	1.51%	1.56%
12 – 17 months	3.04%	3.09%
18 – 23 months	3.04%	3.09%
24 – 35 months	2.22%	2.27%
36 – 47 months	1.81%	1.87%
48 – 59 months	1.92%	1.97%
60 months	2.02%	2.07%

APY = Annual Percentage Yield

To put these CD rates in perspective, the current national average for a 12 month CD and a 60 month CD sit at just 1.07% APY and 1.09% APY, respectively, according to FDIC data.

Promotional CD Rates (without Member Advantage):

CD Term	APY	APY
Deposit Size	$500 – $49,999	$50k +
12 month Bump CD	3.30%	3.35%
24 month Bump CD	1.97%	2.02%

APY = Annual Percentage Yield

All BECU CDs require a minimum deposit of $500 except for the Add-to option. This type of CD can be opened with as little as $100 under any term but requires you to set up an automatic deposit schedule. The rate for whichever term you choose is fixed even as you continue to contribute funds to your certificate.

The 12 and 24 month bump CDs allow a one-time rate increase before maturity. That means, for example, that if you purchase a 12 month bump CD with a 3.30% APY and then the APY goes up to 4.00% a month later, you can have your account take on this higher APY for the rest of its life. People that purchase bump or bump-up CDs expect market rates to rise between the time of CD issuance and time of maturity and want to be able to take advantage of upward trends.

With Member Advantage, CD rates are higher across the board:

CD Rates (With Member Advantage)

CD Term	APY	APY
Deposit Size	$500 – $49,999.99	$50,000 +
3 – 5 months	2.02%	2.07%
6 – 11 months	2.02%	2.07%
12 – 17 months	3.56%	3.61%
18 – 23 months	3.56%	3.61%
24 – 35 months	2.73%	2.78%
36 – 47 months	2.32%	2.38%
48 – 59 months	2.43%	2.48%
60 months	2.53%	2.58%

APY = Annual Percentage Yield

Promotional CD Rates (With Member Advantage)

CD term	APY	APY
Deposit Size	$500 – $49,999.99	$50,000 +
12 month Bump CD	3.82%	3.87%
24 month Bump CD	2.48%	2.53%

APY = Annual Percentage Yield

Earl Withdrawal Penalties and Grace Period

Early withdrawals from terms up to and including 12 months are charged 30 days’ interest and terms greater than 12 months are charged 90 days’ interest. There is a renewal grace period of 7 days. If you act within this time period after your certificate matures, you can change the terms of your CD or withdraw funds without incurring fees.

BECU Money Market Rates + Account Details

Like certificates, BECU money market accounts accrue different interest rates for non-Member Advantage and Member Advantage accounts. If you have a Member Advantage checking or savings account, you will earn higher rates on your money market accounts.

Money Market Rates

Balance	APY	APY
Member Advantage Y/N	No	Yes
$0 – 9,999.99	1.51%	2.02%
$10k – 49,999.99	1.51%	2.02%
$50k – 99,999.99	1.51%	2.02%
$100,000 +	1.51%	2.02%

APY = Annual Percentage Yield

There is no monthly fee for money market accounts. You may make up to six transactions per month, but every withdrawal outside of this limit is charged a $20 excessive transaction fee.

Other Savings Accounts Offered by BECU

BECU has several other savings options, including a member share savings account, a regular savings account, a Member Advantage savings account, a health savings account, and an Early Saver account. Take a look at the rates for each of these account types.

Member Share Savings: 0.50% APY
Savings: 0.50% APY
Member Advantage Savings: 3.04% APY (up to $500)
Health Savings: 0.50% APY
Early Saver: 6.17% APY (up to $500)

A member share savings account establishes your membership with BECU, but it won’t come close to maximizing your returns. At 0.50% when the average is 0.30%, you’d be right to be unimpressed. However, the Member Advantage Savings gets you 3.04% on the first $500 you put into it before jumping down to 0.50%, so it’s clearly the better of the two options.

The Early Saver or youth savings account also pays a premium rate on the first $500. For this one, you’ll have to be between 13 and 18 years old and go into a branch with a parent or guardian (that is, of course, a BECU member) to open it.

There are no monthly minimum balance requirements and no maintenance fees for BECU savings accounts. In addition, online and mobile banking are completely free and there are over 30,000 surcharge-free ATMs you can use. The only fees you really have to watch out for are the excessive transaction fee and the non-sufficient funds fee of $25 per transaction.

About BECU + Eligibility

BECU membership is mostly based on geography or employment. To qualify, you must:

Live in Washington state or a qualifying Oregon or Idaho county
Work for BECU, Boeing, or a credit union (or be a family member of someone that does)
Be associated with the University of Washington or Washington State University Alumni Association, the NW Credit Union Foundation, or KEXP

For all qualifying counties, go here.

There is one loophole you can try if you don’t qualify for membership, but it’s not going to appeal to everyone. To become a KEXP donor, you must make a monthly donation of $10 or more or a one-time donation of $100 or more. KEXP is a Seattle-based public radio station. This will qualify you for membership with BECU, but you’ll have to decide what that’s worth to you.

To qualify for Member Advantage checking and savings accounts, all you have to do is sign up to receive monthly eStatements (as opposed to paper statements), make at least one free electronic transaction per month, and have a BECU checking and savings account.

BECU holds over $21.8 billion in assets and has over 1.2 million members. This financial cooperative has more than 50 branch locations around Puget Sound, Seattle, Spokane, and South Carolina. It also participates in shared branching with over 3,500 other credit unions. There are more than 30,000 in-network ATMs across the country.