For a better banking experience, you might want to consider ditching your traditional big bank and establishing a relationship with a credit union. While some local credit unions are limited in their offerings, others, like Redwood Credit Union (RCU), offer products and services that are comparable to banks. This review can help you determine whether the credit union can fulfill all of you banking requirements.
RCU Review: Large Presence and Broad Product Range
Founded in 1950, RCU is NCUA-insured and serves more than 230,000 members and 400 groups and associations. It is the 63rd-largest credit union in the U.S., with more than 17 branch locations in Sonoma, Marin, San Francisco, Napa and Mendocino counties as well as 30,000 fee-free ATMs nationwide. Most branches are open between 9 a.m. and 6 p.m., Monday through Friday, and some locations offer Saturday hours from 9 a.m. to 4 p.m.
RCU Products and Services
A review of the credit union's products and services can help you determine whether it's the right institution for you. As a full-service banking solution, the credit union offers something for everyone. Consider the options listed below and whether they will meet you banking needs.
1. RCU Checking Accounts
RCU offers three checking options: Free Checking, Dividend Checking and High Balance Dividend Checking. The minimum balance requirements range from $0 to $2,500, and there's no monthly service fee if you maintain the minimum balance.
Each RCU checking account has the following free features: online banking, bill pay, 24/7 telephone support, direct deposit and payroll deductions, and a debit card. Various forms of overdraft protection also are offered. Dividend Checking earns a rate of 0.05% APY, and High Balance Dividend Checking earns between 0.10% APY and 0.15% APY.
Related: How to Choose the Right Checking Account
2. RCU Savings Accounts
The credit union offers three basic savings options: Regular Savings, Build Your Own Savings and Holiday Club. Open an account with only a $5 minimum deposit and you could earn 0.10% APY on your deposits. There's no monthly maintenance fee for Build Your Own Savings and Holiday Club. The credit union waives the $3 monthly fee for Regular Savings if you maintain a monthly balance of $75.
The credit union offers other savings options as well, such as:
Health savings accounts: Medical savings plans like these can supplement your high-deductible health plan.
Youth accounts: The Jr. Ranger and Jr. Partner savings programs are for members age 17 and younger. They feature no monthly service fees and dividends paid on balances of $10 or more.
Certificates of deposit: These share certificates require a minimum deposit of $1,000 and have terms from three months to five years. Rates range from 0.05% APY to 1.30% APY based on the term.
Money market accounts: The credit union's three money market options — Money Market Growth, Balance Money Market and Advantage Plus Money Market — have minimum balance requirements ranging from $5 to $10,000. You can earn dividends between 0.10% APY and 0.35% APY.
Individual retirement accounts (IRAs): Supplement your workplace retirement account or jump-start your retirement plan if you're self-employed. RCU offers eight IRA options, including traditional IRAs and Roth IRAs.
Related: How Roth IRAs Give Gen Y a Fighting Chance
3. RCU Loans
Whether you're looking to buy a home or car, RCU offers several loan options. Visit the credit union's online Home Solution Center for information on first mortgages, refinancing, home equity loans and home equity lines of credit. The credit union offers adjustable-rate and fixed-rate mortgages between 10 and 30 years with competitive rates. Additionally, you can apply for an auto loan with flexible terms between 24 and 84 months and rates starting as low as 2.44% APR. Other loans and lines of credit include:
Personal loans
RV loans
Solar loans
Credit cards — Visa Platinum credit card and Visa Credit Builder credit card
4. Other Banking Services
RCU offers several other financial services and products for its members as well, including:
Investment services — financial planning, college planning, private portfolio management, stocks, bonds, mutual funds
Retirement planning
Insurance: auto, boat, RV, home, loan protection, pet, identity theft, travel
Online services — online account management, e-statements, bill pay, mobile banking
Related: Here's Why 45 Million People Bank on Their Phones
Pros and Cons of RCU
RCU offers a diverse range of products and services that enable members to manage nearly all aspects of personal finance in one place. You can open a deposit account, apply for loan, build a credit history, plan for retirement and purchase insurance from a single provider, which can make taking care of many financial concerns easier. Additionally, the credit union offers longer Saturday hours, which is convenient for anyone who can't complete transactions during the week.
If you're looking to grow your savings faster, the credit union has a variety of savings account options with rates higher than the national average of 0.06% APY. The credit union's checking account rates are similarly advantageous. The credit card rates, however, start at 8.99% APR, which is competitive but higher than some promotional offers you might find at other financial institutions.
While the credit union does offer online banking, it does not have a live chat feature on its website, and its mobile app features are limited. The credit union's online and mobile banking services show that it is taking steps to meet today's demand for easy online and mobile banking, but it will likely need to do more to keep up with tech-savvy consumers. It does not, for example, offer text banking capability yet, although a member can receive text alerts.
Bottom Line
When choosing among the many banks and credit unions in the North Bay and San Francisco area, you need to think about what products and services you are missing, need or want most. Do you want to be able to do all of your banking from your smartphone and never set foot in a branch? You might want to consider an online bank then. Are you looking for a financial institution with a local presence and a modern, comprehensive service menu offering everything from basic checking and loans to insurance and retirement planning? If so, RCU could be a good fit for you.
This article originally appeared on GOBankingRates.com: Redwood Credit Union Review