Redstone Federal Credit Union Review: High Savings APY

4.9
Our Take: Redstone Federal Credit Union offers a wide variety of accounts and services, and its limited geographical reach is offset by access to more than 70,000 fee-free ATMs and a highly rated mobile app that lets you bank anytime and anywhere. Keep reading for a closer look at its products, services, strengths and weaknesses.
  • Fees
    5.0
  • Mobile App
    4.8
  • Breadth of Products
    4.8
  • Account Minimums
    5.0
How did we calculate this?

No Redstone Federal Credit Union review would be complete without considering what it does well and what it can improve on. Here’s a quick look:

Pros

  • Multiple account types
  • No monthly maintenance fees for checking account members 24 and younger
  • High-yield savings account
  • Surcharge-free access to more than 70,000 ATMs

Cons

  • Limited geographical reach and branch network
  • Top annual percentage yield limited to first $2,500

About Redstone Federal Credit Union

Redstone Federal Credit Union traces its history back to 1951 when 11 original members tossed $5 each into a shoebox. From that humble beginning, Redstone now ranks as one of the 25 largest federal credit unions in the country, with more than $5.5 billion in assets.

Sponsors of

The Huntsville, Alabama-based credit union offers a wide variety of personal accounts — including checking and savings accounts, certificates and money market accounts — in addition to loans and mortgages, credit cards, investments and insurance.

Redstone Federal Credit Union Products

One of Redstone Federal Credit Union’s strengths is in the range of products that it offers. Here’s a rundown:

Product Details
Checking Accounts
  • Three account types available
  • Discounts on debit card purchases
  • $25 initial deposit
Savings Accounts
  • Multiple account types, including high-yield, Christmas Club and kids accounts
  • Dividends paid quarterly
  • APY ranges from 0.10% to 2.02%
Money Market Account
  • Tiered interest rates
  • $2,000 minimum to open
Share Certificates
  • Regular and jumbo options
  • Terms from six to 144 months
  • APY as high as 1.20%
Individual Retirement Accounts
  • Traditional and Roth IRAs
Investment Options
  • Annuities, managed accounts, mutual funds, stocks, bonds, college investment plans, 401k plans, guided wealth portfolios
  • Provided by Redstone Brokerage Services
Loans
  • Personal loans
  • Home loans and refinancing
  • Auto loans
  • Credit cards
Business
  • Business checking and savings accounts
  • Loans
  • Merchant services
  • Cash management tools

Redstone Federal Credit Union Checking Accounts

Sponsors of

Redstone Federal Credit Union has three checking accounts: Easy Checking, Safeguard Checking and Rewards Checking. Easy Checking is the most basic account and features no or low monthly maintenance fees, depending on your age. Rewards Checking is the premier account, offering MyChoice Rewards and perks like free checks. Safeguard Checking is designed for customers who want to avoid certain fees when unexpected expenses come up.

Features

  • $25 minimum opening deposit for all accounts
  • No monthly maintenance fees for members 24 years old and younger
  • Safeguard Checking has an $8 monthly maintenance fee with eStatements or $10 with paper statements
  • $3 monthly fee with Easy Checking, but waived with direct deposit or four debit card transactions per month
  • $8 monthly fee with Rewards Checking, but waived with direct deposit or by using the debit card to make purchases
  • Visa discounts on debit card purchases

Pros

  • Premier perks with Rewards Checking, including free checks, money orders, official checks and rewards points
  • Redstone Round Up program rounds up debit card purchases to the nearest dollar and deposits the difference into Brighter Day Savings
  • No monthly maintenance fees for younger customers
Sponsors of

Cons

  • Safeguard checking fees cannot be waived
  • No interest-bearing option

Redstone Federal Credit Union Savings Accounts

Redstone Federal Credit Union offers multiple savings accounts, including a standard membership account, a high-yield savings account, a kids account and a Christmas Club account. All accounts have access to online banking.

Features

  • “You Name It” and Christmas Club accounts pay 0.10% APY
  • Brighter Day Savings account pays a 2.02% APY on the first $2,500, and the standard 0.10% APY on larger amounts
  • $5 minimum opening deposit for Regular Share account
  • $500 minimum opening deposit for “You Name It” account
  • No minimum opening deposit required for the Christmas Club account
  • $5 minimum opening deposit for STAR Club youth account
  • No minimum opening deposit required for a high yield Brighter Day account

Pros

  • High 2.02% APY on first $2,500 in Brighter Day Savings account
  • Low or no minimums for most savings accounts
  • Standard 0.10% APY is about double the national average for savings accounts
  • No monthly fees listed on savings accounts

Cons

  • Standard APY not as high as with certain online banks
  • Higher balances don’t get premium APY with Brighter Day Savings account
Sponsors of

Redstone Federal Credit Union Money Market Account

Redstone offers a single money market account, dubbed the Money Market Share account. Here’s what you need to know:

Features

  • $2,000 minimum to open an account
  • $2,000 minimum to earn dividends
  • Dividends paid monthly
  • Tiered interest rates ranging from 0.15% APY to 0.25% APY

Pros

  • Higher APYs than with savings account

Cons

  • Fee for withdrawals that exceed six per month

Redstone Federal Credit Union Share Certificates

Redstone offers both Regular and Jumbo Share Certificates, which are the credit union equivalent to CDs. It also offers Members’ Choice Certificates, which allow account owners to bump up their rates.

Features

  • Terms from six months to 144 months
  • APY ranges from 0.15% to 1.20%
  • $1,000 minimum to open Regular Share Certificates
  • $100,000 minimum to open Jumbo Share Certificates
  • Can bump up rate once after 90 days and every 365 days thereafter with Members’ Choice Certificates

Pros

  • Jumbo CDs with higher rates
  • “Bump-up” CDs in the form of Members’ Choice Certificates
  • Long-term CDs of up to 12 years
  • High 1.20% APY for 144-month terms

Cons

Sponsors of

Banking Experience

Redstone Federal Credit Union has a limited physical footprint, but it does have ample mobile capabilities for members outside of its immediate service area.

Physical Branch Locations

Redstone Federal Credit Union has 26 branch locations in the Tennessee Valley region. Hours might vary from one branch to the next, so call ahead or check online to find the hours for your local branch.

Mobile and Digital Experience

Redstone Federal Credit Union offers online as well as mobile banking to members. It gets high marks for its mobile app, with users on Google Play giving it 4.7 out of 5 stars, and those on the App Store rating it even higher, with 4.9 stars

Here are some of the things you can do on the Redstone mobile app:

  • Check balances
  • Transfer funds
  • View/activate cash-back offers
  • Pay bills
  • Deposit checks
  • Locate branches or ATMs
  • View credit card activity

How To Open an Account

To open an account at Redstone Federal Credit Union, you must first become a member. There are various ways to qualify, including the following:

  • Belong to one of the more than 1,500 partner organizations, clubs, churches or businesses
  • Have an immediate family member who is a Redstone member
  • Live in a household with a Redstone member
  • Be a government employee or contractor
  • Be a military service member or a dependent of a military service member
  • Be in the Military Reserve or National Guard
Sponsors of

Once you become a member, you’ll need the following to open an account:

  • Social Security number
  • Proof of residency as a U.S. citizen or resident alien
  • Driver’s license or other government-issued ID
  • Previous home address (if you have lived at your current home address for less than two years)

Note that Redstone Federal Credit Union will run a credit check on all applicants.

Customer Service

Members in the Huntsville area can reach Redstone Federal Credit Union customer service by calling 256-837-6110.

For those outside Huntsville, the number is 800-234-1234. Hours are Monday through Friday from 9 a.m. to 5 p.m. and Saturday from 9 a.m. to 1 p.m.

Online chat is also available during those hours.

Other options are to email the credit union or visit a branch. A Call24 quick reference guide is also available 24/7 by calling 800-666-2430 outside of Huntsville, or 256-837-0150 in Huntsville.

Key Information

Customer Service Numbers: 256-837-6110 in Huntsville or 800-234-1234 elsewhere

Routing Number: 262275835

Redstone Federal Credit Union Fees

Like any financial institution, Redstone charges fees for certain activities and services. Here’s a quick rundown:

Type Amount
Stop payment $25
Official check $5
Wire transfer (domestic) $16
Wire transfer (international) $30
Dormant checking account $5 per month
Coin deposit/counting fee 4% of amount over $0.25
Money order $2
Debit/credit card rush order fee $35 per order

Redstone Federal Credit Union vs. Competitors

Redstone is one of many financial institutions you can choose from to hold your money. Here’s a look at how it stacks up against some of the competition.

Credit Union Best For
Redstone Federal Credit Union Residents of the Tennessee Valley region who want access to a comprehensive product lineup and a large fee-free ATM network
Navy Federal Credit Union High standard checking and savings APYs
America First Federal Credit Union Fee-free accounts
All-In Credit Union High CD rates

Redstone Federal Credit Union vs. Navy Federal Credit Union

Redstone’s biggest advantage over Navy Federal Credit Union is its broad network of surcharge-free ATMs. Redstone’s network totals more than 70,000 machines — much higher than the 28,000 offered by the CO-OP network used by Navy Federal. However, Navy Federal gets the edge for the yields on most of its accounts. For example, Navy Federal’s Flagship Checking account pays 0.45% APY for balances $25, 000 and over, whereas Redstone doesn’t even offer an interest-bearing checking account.

Redstone Federal Credit Union vs. America First Federal Credit Union

America First offers a wider range of fee-free accounts than Redstone, but Redstone’s 2.02% APY on the first $2,500 deposited in its high-yield savings account makes it a better choice for customers who want to see their savings grow.

Redstone Federal Credit Union vs. All-In Credit Union

All-In Credit Union has the edge when it comes to Certificate rates, with APYs ranging from 0.35% to 1.10%. Only one Redstone Certificate can beat the highest rate offered by All-In, while it falls short on most of the shorter-term Certificates. On regular savings accounts, however, Redstone gets the nod with the 2.02% APY offered on the first $2,500 deposited into its Brighter Day Savings account.

Final Take

Redstone Federal Credit Union offers a strong range of accounts and services — especially for a regional credit union. Although it has a limited service area and branch network, Redstone members can use more than 70,000 ATMs free of charge, and its mobile apps have excellent functionality. For those who qualify for membership, Redstone Federal Credit Union is worth a look.

Editor’s Favorite

Redstone’s Brighter Day Savings account is the highlight, paying one of the best available savings rates and carrying no fees.

Redstone Federal Credit Union FAQ

Here are the answers to some commonly asked questions about Redstone Federal Credit Union.
  • Does Redstone Federal Credit Union offer Zelle?
    • Redstone customers can send and receive money using Zelle-- free of charge. The credit union formerly used PopMoney, but moved to Zelle in July 2020.
  • Does Redstone Federal Credit Union have free checking?
    • Each of Redstone's three checking accounts comes with monthly fees, but fees for two of the accounts can be waived.
  • When are mobile deposits available at Redstone Federal Credit Union?
    • Mobile deposits are immediately credited to accounts at Redstone, except in instances when deposits are reviewed manually. Manual reviews are conducted the same business day if they are received by 4:30 p.m. CST.
  • Is Redstone Federal Credit Union FDIC insured?
  • Does Redstone Federal Credit Union offer free money for signing up for an account?
    • If you refer a new customer to Redstone and they open an account, set up online banking and use their debit card five times, both you and your referral will receive $100.

Rates are subject to change. Information on accounts is accurate as of Jan. 29, 2021.

This content is not provided by Redstone Federal Credit Union. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Redstone Federal Credit Union.

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About the Author

After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.

Redstone Federal Credit Union Review: High Savings APY
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