Naft Federal Credit Union review: Hispanic American-led institution with solid short-term share certificates

OSTN Staff

NAFT Federal Credit Union logo on Personal Finance pattern background
Naft Federal Credit Union is a Hispanic American-led financial institution with 3 branches in Texas.

Table of Contents: Masthead Sticky

Overall credit union rating

Feature Insider rating (out of 5)
Savings 3.5
Checking 3.75
Money market account 3.75
Share certificate 2.5
Trustworthiness 4
Total 3.5

Pros and cons

Pros Cons
  • Credit union that serves a Hispanic American community
  • Competitive short-term share certificates
  • Low minimum opening deposits on savings and checking accounts
  • Possible to waive monthly fees
  • Only available in South Texas
  • Monthly fees on savings and checking accounts
  • No debit card or check-writing included in your money market account
  • Low interest rates on savings, checking, and money market accounts
  • Interest compounded monthly or quarterly, not daily

Savings

Naft Federal Credit Union Savings Account

When you open the Naft Federal Credit Union Savings Account, you’ll have to pay a $5 fee and deposit at least $20. It’s a decent option if you can maintain at least $100 in your account daily, so you’ll earn a bit of interest.

But if you’d prefer to earn a higher rate or avoid the monthly service fee, our best high-yield savings accounts guide may have more appealing options.

Checking

Naft Federal Credit Union Checking Account

The Naft Federal Credit Union Checking Account makes it easy to waive the monthly service fee. All you need to do is set up a direct deposit. You can also earn interest if you maintain at least $2,000 in your account daily.

Share certificate

Naft Federal Credit Union Share Certificates

Naft Federal Credit Union pays competitive interest rates on Naft Federal Credit Union Share Certificates. This account is a great choice if you can make the $1,000 minimum opening deposit.

Note that the early withdrawal penalty is the same regardless of which term you choose.

Money market account

Naft Federal Credit Union Money Market Account

There’s no monthly service fee for the Naft Federal Credit Union Money Market Account. However, this account doesn’t provide easy access to your account like most money market accounts – there’s no debit card or check-writing included.

If this is a deal-breaker for you, our best money market accounts guide includes accounts that provide these features.



How does Naft Federal Credit Union work?

Naft Federal Credit Union is a Hispanic American financial institution with three branches in Pharr and Harlingen, Texas. The credit union has 13 free ATMs in its network. Members also have access to over 30,000 free ATMs through the CO-OP Shared Network.

To become a member, you or a family member must live or work in Pharr, San Juan, or Alamo, Texas. You’ll need to open a savings account with at least $20 and pay a $5 fee.

If you have questions about bank accounts or services, you can call the nearest branch location. Hours will vary between branches, but you can call any from 10:00 a.m. to 5:00 p.m. Monday through Friday or Saturday from 10:00 a.m. to 12:00 p.m. CT.

The credit union is part of the TouchBanking mobile app, which has 4.8 out of 5 stars on the Apple Store and 3.9 out of 5 stars on the Google Play Store.

Naft is also federally insured by the NCUA. Up to $250,000 deposited in an individual bank account is safe, even in the rare event that a credit union shuts down.

Is Naft Federal Credit Union trustworthy?

Naft Federal Credit Union has a D+ rating from the Better Business Bureau because it hasn’t responded to one customer complaint and hasn’t been operating for a long time.

A good BBB rating isn’t necessarily the be-all and end-all to seeing if a credit union will be the right fit for you. You’ll also want to talk to friends or family that are current members or read online customer reviews to get other perspectives.

On a more positive note, Naft Federal Credit Union hasn’t been involved in any recent public scandals.

The role of Hispanic American-led financial institutions

Hispanic American-led financial institutions are great local banking options for Hispanic American and underserved communities. These banks are often more closely tied to these communities than national banks.

At Naft Federal Credit Union, customer support is available in English and Spanish. It has also partnered with a local school to help low-income high school students enter college.

How Naft Federal Credit Union compares

We compared Naft Federal Credit Union to two other Hispanic American-owned credit unions in South Texas: Lone Star National Bank and Security First Credit Union.

Naft Federal Credit Union Logo
Lone Star National Bank
Security First Credit Union logo

Texas branches

3 (Pharr, Harlingen)

Texas branches

33 (Alton, Brownsville, Edinburg, Harlingen, Hidalgo, McAllen, Mission, Pharr, Rio Grande City, Roma, San Antonio, South Padre Island, Weslaco)

Texas branches

8 (Brownsville, Edinburg, Harlingen, McAllen, Mission, San Benito, Weslaco)

Standout feature

Competitive interest rates on short-term share certificates

Standout feature

Low minimum opening deposit on checking and savings accounts

Standout feature

High interest rates on share certificates

Naft Federal Credit Union Savings Account Lone Star National Bank Personal Savings Account Security First Credit Union Regular Share Account

To open a bank account with a credit union, you’ll have to be eligible for membership.

You can become a member of Naft Federal Credit Union if you or a family member live in Pharr, Alamo, or San Juan. Meanwhile, Security First Credit Union lets you join if you live, work, or study in a Rio Grande Valley county.

If you don’t meet these requirements (or prefer a bank to a credit union), Lone Star National Bank doesn’t have any requirements to open a bank account.

Your decision between these three institutions may also depend on which accounts best fit your needs.

Lone Star is a good option if you want to open a bank account with a low minimum opening deposit. It also has the most branch locations and is part of the large Allpoint ATM network.

Naft Federal and Security First pay great rates on share certificates. However, Naft Federal doesn’t have terms longer than three years, so Security First will be a better choice if you’re searching for a long-term share certificate.

Related Content Module: More Savings Coverage

Read the original article on Business Insider

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