Abound Credit Union Review
Is Abound Credit Union a good bank?
Abound Credit Union is a Kentucky-based institution that was first established in 1950 as the Fort Knox Civilian Employees Federal Credit Union. The original charter included just 10 members, but it has since grown to more than 100,000 members. As it grew, it changed its name—first to Fort Knox Federal Credit Union, and then, in February 2020, to Abound Credit Union.
Considering an account with Abound Credit Union? This review can help you decide whether the credit union has something to offer you.
What We Like
Get Paid Early expedites direct deposits by up to two days
Competitive annual percentage yields on share certificate accounts
No-down-payment mortgage options available
What We Don't Like
Limited branch access
Limited checking and savings account options
$250,000 required to maximize money market yields
Who Is Abound Credit Union Best For?
Abound Credit Union offers both branch and online banking with a full line of banking products and services, including checking accounts, savings accounts, and home loans. It's a good fit for people who:
- Prefer to pay minimal fees for banking
- Want to obtain loans at competitive interest rates
- Want a credit union that specializes in their region
- Are comfortable with a simplified approach to banking
What Does Abound Credit Union Offer?
Abound Credit Union offers all the standard accounts and services you'd expect to find at a financial institution. Being a smaller credit union, it may not match the wide variety of options offered by major banks, but Abound's accounts will meet many customers' needs.
Accounts offered include:
- Checking account
- Savings account
- Certificates of deposit
- Money market accounts
- Credit cards
Abound Credit Union offers a basic personal checking account option. It's a straightforward checking account with few bells and whistles. You won't earn interest, for instance, and there's no debit card rewards program.
While the account is simple, it does offer a number of free benefits, including:
- No account fees
- No account minimums
- Direct deposit
- The "Get Paid Early" program, which speeds up direct deposit processing by as much as two days
- Mobile check deposit
- Visa debit card
- Electronic bill pay
- Sending money is free with online or mobile banking
Like most credit unions, Abound offers insurance on deposit accounts—up to $250,000—through the National Credit Union Administration (NCUA).
It only takes a minimum deposit of $5 to open a savings account with Abound Credit Union. Like checking accounts, the credit union's savings account is simple. You can access your account by phone, online, through the mobile app, at the ATM, or at a branch location.
However, unlike Abound's checking account, savings account deposits earn interest. The rates are tiered based on your balance, but you'll start earning quarterly dividends once your balance hits $100. To land the highest rate for a savings account (0.25% as of May 11, 2020), you'll need a minimum balance of $100,000.01. These rates, like all rates, are subject to change based on fluctuations of the federal funds rate.
|Savings Account Rates (as of May 11, 2020)|
|$100.00 to $10,000.00||0.10%|
|$10,000.01 to $50,000.00||0.15%|
|$50,000.01 to $100,000.00||0.20%|
|$100,000.01 and up||0.25%|
Abound may impose an "Excessive Withdrawal Fee" if more than 12 withdrawals are made within one dividend period.
Certificates of Deposit
Credit unions sometimes refer to certificates of deposit as "share certificates," "term certificates," or simply "certificates," but they're all the same product. Abound Credit Union offers share certificates with maturity terms ranging from three to 59 months. As of May 11, 2020, the APY for these certificates ranges from 0.5% to 1.75%.
|Certificate Rates (as of May 11, 2020)|
The credit union also offers two certificate specials:
- 14-month certificate: 1.55% APY
- 26-month certificate: 1.60% APY
Like regular bank CDs, share certificates are time deposits. That means if you tap into your savings ahead of the certificate's maturity date you may face a penalty charge. Abound Credit Union bases the amount of the penalty on the certificate term.
A nice benefit is that you don't need a lot of money to open a certificate account. The minimum amount to get started saving on any timeline is $500.
Money Market Account
Money market accounts combine the best features of savings accounts and certificates of deposit. You can make withdrawals when you need to while earning more interest on your balance than you would with a savings account.
The Abound Credit Union money market account has both of those features. As with the savings account, the APY you earn is tiered according to your balance.
|Money Market Account Rates (as of May 11, 2020)|
|$1,000.00 to $10,000.00||0.20%|
|$10,000.01 to $25,000.00||0.35%|
|$25,000.01 to $50,000.00||0.40%|
|$50,000.01 to $100,000.00||0.45%|
|$100,000.01 to $250,000.00||0.55%|
|$250,000.01 and up||0.65%|
You'll need a minimum monthly balance of $1,000 to open a money market account. If you open an account and then fall below that $1,000 minimum, you may have to pay a "Minimum Balance Fee." Abound may also impose a fee if you make more than six withdrawals from your money market account in one month.
Savvy Money Market Account
Those with significant savings who don't anticipate needing to make many withdrawals may prefer the Savvy Money Market Account offered by Abound Credit Union. The Savvy Money Market Account offers 1.5% APY (as of May 11, 2020), more than double the highest APY offered by a standard money market account.
So, what's the catch? You need to maintain a minimum balance of $250,000 to enjoy that APY. You're also limited to one withdrawal per month.
Neither of the money market accounts offered by Abound Credit Union comes with a debit or ATM card.
Abound Credit Union offers two types of credit cards:
- Classic Visa
- Platinum Visa
Other Financial Products From Abound Credit Union
Abound offers more than just deposit accounts to its customers. The credit union also offers financial products like:
- Personal loans
- Home loans
- Home equity lines of credit
- Auto, motorcycle, boat, and RV loans
- Business loans, including Small Business Administration loans
- Business real estate loans
- Roth and traditional IRAs
- Brokerage account
- Coverdell Education Savings Account
- Insurance products offered through a partnership with TruStage
Abound Credit Union's investment accounts are offered through a partnership with CUNA Brokerage.
Abound Credit Union Customer Service
In-person customer service is available at 16 branch locations across Kentucky. Phone support is available by calling 1-800-285-5669 between 9 a.m. and 6 p.m. Monday through Friday, or between 9 a.m. and 1 p.m. on Saturday. There's also an online form to begin an email conversation.
How to Bank With Abound Credit Union
As with any financial institution, you should prepare to provide personal information while opening an account with Abound Credit Union. You can start the process in-person at a branch location, online at aboundcu.com, or by calling 1-800-285-5669.
You'll need $15 to open an account; $5 represents one share in the credit union, and the remaining $10 is a one-time membership fee.
The Bottom Line
Abound Credit Union has great rates for long-term savers interested in more than just a savings account. The share certificates have competitive rates, and the relatively low minimum of $500 makes these certificates more accessible than some competitors. In general, credit union membership can also work in your favor if you need a loan, as credit unions tend to offer more favorable rates compared to banks.
While it gets high marks for its APY on certificate accounts, Abound Credit Union falls short on convenience. Branch locations are limited to a fairly small geographic area. While there is a nationwide ATM network, frequent travelers will likely feel inconvenienced by these limitations. Beyond that, the credit union's range of checking and savings account products is sparse compared to what other credit unions and banks may offer.
Abound Credit Union. "Abound Credit Union History." Accessed May 11, 2020.
Abound Credit Union. "Checking Account." Accessed May 11, 2020.
Abound Credit Union. "Rates." Accessed May 11, 2020.
Abound Credit Union. "Savings Accounts." Accessed May 11, 2020.
Abound Credit Union. "Money Market Accounts." Accessed May 11, 2020.
Abound Credit Union. "Investment & Retirement Planning." Accessed May 11, 2020.
Abound Credit Union. "Branch Locations." Accessed May 11, 2020.
Abound Credit Union. "Contact Us." Accessed May 11, 2020.