Kinecta Federal Credit Union Review

credit union

Each one of Kinecta Federal Credit Union’s original 12 founders made a $5 deposit to establish the organization in 1940, and that’s the minimum deposit requirement to open a savings account 75 years later. The credit union began as the Hughes Aircraft Employees Federal Credit Union with just $60 in assets from its dozen founders, but it has expanded with more than $3.2 billion in assets and serves more than 270,000 members across the country today.

Kinecta Federal Credit Union Cares About its Members

The Southern California-located credit union was created to give Hughes Aircraft Company employees a way to handle their banking business without having to drive all the way downtown. And though the name of the original credit union changed in July 2001 — from Hughes Aircraft Employees Federal Credit Union to Kinecta Federal Credit Union — it strives to stay true to its goal of providing “unequalled value” to its members, according to its website. 

Today, the credit union has 35 branches, with some open as late as 6 p.m. and 7 p.m., and maintains 65 ATMs in California. It is federally insured by the National Credit Union Administration, which means its members’ individual accounts are protected up to $250,000.

Kinecta Federal Credit Union Products and Services

The credit union offers its members many financial products, including checking and savings accounts, home and auto loans, insurance, business accounts and business loans, personal loans, credit cards and more.

Members looking for basic banking services can open a free checking account that doesn’t require monthly fees and comes with free online banking and bill pay. Kinecta Federal Credit Union’s traditional savings account offers an annual percentage yield (APY) of 0.05%*. At the other end of the spectrum, Kinecta offers business and commercial real estate loans, as well as financial advice and wealth management services for members who have simple or complex needs.

Read: 5 Important Facts You Never Knew About Your Savings Account

Kinecta Federal Credit Union Pros and Cons

Considering Kinecta Federal Credit Union’s 12-month jumbo share certificates offer an APY of 0.55%* on balances of $100,000 and above, savers might find more attractive interest rates at other financial institutions. But, while it might not have the most attractive rates, the credit union features some unique savings for members.

In addition to regular share certificates, Kinecta Federal Credit Union offers Access Plus share certificates that allow members to make penalty-free withdrawals of up to 50 percent of the certificate’s start-of-day balance on a daily basis. Withdrawals exceeding 50 percent of the start-of-day balance, however, are subject to penalties.

For those willing to commit their money for a set term, the credit union has the unique option of a 13-month regular or IRA share certificate that features an 0.80% APY* at any deposit amount, making it a solid alternative to the 12-month regular certificate that offers a 0.50% APY* for balances under $100,000.

Members who hold share accounts might also qualify for VIP membership perks as part of the Gold Club or Hughes Gold Elite Club. To qualify for a Gold Club membership, for example, members must have at least $150,000 in combined loan, deposit and investment balances, including a minimum of $10,000 in deposits and investments. Additionally, members must have a minimum monthly average of three transactions tied to share accounts or a minimum monthly average direct deposit of $250 into Kinecta share accounts.

Once qualified, members can enjoy various premium membership benefits, including:

  • Increased interest rates on share certificates
  • Access to free services, including wire transfers
  • Overdraft fee reversal
  • Free checks
  • Free safe deposit box
  • Reduced first mortgage closing costs

Bottom Line

Kinecta Federal Credit Union might not offer the absolute best interest rates for deposit accounts or loans. But if you are looking for a credit union with a long history of stability that provides a full range of financial services, some innovative savings alternatives and perks for VIP memberships, this credit union might be an appealing option for you.

*Rates are in effect as of April 28, 2015, and may be subject to change at any time.