American First Credit Union Review: Savers Can Win Big, Despite Mostly Low APYs

American First Credit Union is a Southern-California-based credit union that offers several tools to help members save more, including a prize-linked savings account and a holiday club. APYs are generally below average, but there are several perks of membership, including discounts and free financial counseling. Find out whether American First Credit Union is the right choice for your banking needs.

Most credit unions limit membership to those who live in a specific geographic area, work for a certain employer, or have an affiliation with an organization like a labor union or university. American First Credit Union is no different. To join, you must meet one of the following criteria:

• You live, work, worship, or attend school in Southern California. You can join if you live in Orange, Riverside, or San Bernardino counties, or one of the following cities: Artesia, Bellflower, Cerritos, Hawaiian Gardens, La Habra Heights, La Mirada, Lakewood, Long Beach, Montebello, Norwalk, Pico Rivera, Santa Fe Springs, Signal Hill, or Whittier.
• You work for a partnering business or affinity organization of American First Credit Union.
• You have a family member who's currently an American First Credit Union member or is a member of the Children's Museum of La Habra.

The credit union has four branches, all located in Southern California. However, because the credit union participates in the CO-OP network, you can do your banking at 5,000 credit union branches nationwide and access 30,000 ATMS fee-free throughout the U.S.

Most of the savings accounts offered by American First Credit Union have below-average APYs. However, there is an option to open an NCUA-insured high-yield money market deposit account through a partnership with online savings marketplace Raisin.

American First Credit Union Regular Savings Account

The Regular Savings Account is a no-frills account that earns an APY on balances over $500 that's well below the national average. If your balance is less than that, you won't earn interest, plus you'll be charged a monthly fee. The fee can be waived, though, if you're under 18 or you have another checking or savings account or loan at American First Credit Union. The account could be a decent fit, though, if you're not too concerned about APY and want to do all your banking in one place.

American First Credit Union Money Market Deposit Account from Raisin

A money market account is a deposit account that typically pays a higher yield than standard checking or savings accounts, but many have higher minimums or limit your transactions. American First Credit Union has a high-yield money market deposit account through a partnership with Raisin. It pays an APY that's significantly higher than the average rate for savings accounts.

To open the money market deposit account, you only need to deposit $1. There's currently no transaction limit in place.

RELATED: Read the full Raisin review.

American First Credit Union Big Prize Savings

Like the Regular Savings Account, the Big Prize Savings account pays up to 0.05% APY (0% on balances under $500, and the max rate on deposits over $500). However, you only need a $25 deposit to open an account, and the account doesn't charge a monthly service fee.

For a few lucky members who maintain a $500 balance, the account can pay off big time: When you keep at least $500 in your savings account every day, you have the chance to win $1,000 each month, $10,000 each quarter, and $50,000 each year. You get one entry for every $25 of average daily balance. If you maintained a $1,000 average daily balance for the month, you'd get 40 entries for any prize.

For those who are sometimes tempted to tap their savings, this is a great perk. The ability to win cash each month could motivate you to maintain a healthy savings balance.

American First Credit Union Holiday Club Account

The Holiday Club Account is a good option if you frequently find yourself pinched for cash as the end-of-year holidays approach. You can open the account with just $5 and earn 0.25% APY on balances above that amount -- which is still below the national average, but significantly higher than the Regular Savings Account and Big Prize Savings APYs.

You can withdraw your money fee-free each year between Nov. 1 and Dec. 31, but each withdrawal during the other 10 months of the year will cost you $10. That could be a disadvantage if your emergency fund is lacking and you need to dip into the savings account. But if you're trying to reduce the temptation to spend holiday money throughout the year, the $10 penalty could actually be a good thing.

Youth Savings Accounts

American First Credit Union offers two savings accounts for kids: The Safari Club is for children 12 and younger, while the Start Smart Account for Teens is for youths ages 13 to 17. Both accounts have a minimum deposit of just $5 and earn 0.25% APY, which is pretty typical of a savings account for kids.

American First Credit Union requires an adult joint owner for its youth accounts, which is the norm when you're opening a bank account for minors.

Certificates of deposit (CDs) typically pay a higher APY than savings accounts, but the catch is that you have to lock up your money for a set period of time or pay an early withdrawal fee. American First Credit Union offers two types of share certificates, which is the credit union equivalent of a CD. There are also no step-up or bump-up CD options, both of which can be advantageous if you believe interest rates will rise.

Traditional Certificates

American First Credit Union offers share certificates with terms ranging from three months to five years. All require a $1,000 minimum deposit. The APYs are well below the national average for CDs with comparable terms -- with a few exceptions in the form of promotional specials.

However, to qualify for these promo specials, you'll need to transfer funds from another financial institution.

Direct Deposit Certificate Builder

If you don't have $1,000 to deposit, you can open a Direct Deposit Certificate Builder account with an opening deposit of $10 and weekly transfers of at least $10. The money in the account will earn slightly more than you get with American First Credit Union's Regular Savings Account, but again, it's significantly less than the average savings account APY.

Once your balance in the Direct Deposit Certificate Builder account hits $1,000, your money will be transferred to a 12-month fixed-rate CD.

High-Yield Certificate Through Raisin

While the APYs on certificates obtained directly through American First Credit Union are low, the credit union offers 12-month, 18-month, and 24-month CDs with extremely competitive APYs through Raisin. The minimum opening deposit is just $1. It's a standard certificate account, which means you'll pay a penalty if you withdraw your money before the certificate matures. The early withdrawal penalty amounts to 90 days of simple interest.

With any financial product, it's essential to compare the alternatives before you deposit money. If you look at other banks and credit unions, you'll likely find CDs or share certificates with much more competitive rates than what you'll find at American First Credit Union.

American First Credit Union offers four types of personal checking accounts, three of which earn interest. One unique feature is that the credit union allows you to earn checking rewards (like gift cards, travel, merchandise) through its uChoose Rewards. You'll also get a Mastercard debit card that you can use fee-free at 30,000 ATMs throughout the U.S.

American First Credit Union Totally Free Checking

If you don't want to pay to access your money, the Totally Free Checking account could be a good choice. There are no monthly service fees or minimum balance requirements, though a $50 opening deposit is required. You'll even get your first order of checks for free, which is a nice perk. The account is also available to teens ages 13 to 17 with a parent or guardian who's willing to be the joint owner.

American First Credit Union Easy Interest Checking

If you want to earn APY on your checking balance, the Easy Interest Checking account is worth checking out. Though the APY is minimal at 0.05%, that's on par with the national average for interest checking accounts. The account requires a $50 opening deposit and doesn't charge monthly fees.

American First Credit Union Preferred Interest Checking

The Preferred Interest Checking account pays up to 0.10% APY (0.05% on the first $1,499.99 in your checking account and 0.10% on amounts above $1,500). As with American First Credit Union's other checking account, it has a $50 opening deposit requirement.

The downside is that there's an $8 monthly fee if you don't maintain a $1,500 daily balance. If you're not sure if you'll consistently keep at least $1,500 in your checking accounts, stick with an account that doesn't have a monthly fee.

American First Credit Union 50+ Interest Checking

The 50+ Interest Checking account is open to members ages 50 and older. The account earns 0.05% APY and doesn't have a monthly fee or a minimum balance. You'll also get your first order of checks for free. As with the other checking accounts, a $50 opening balance is required.

American First Credit Union has an A+ rating from the Better Business Bureau (BBB). Keep in mind, though, that BBB ratings don't include customer reviews. They're based on factors like the business's history of customer complaints and whether they were resolved, along with transparency.

In online reviews, many members report positive experiences when they applied for a loan or refinancing. However, some members say they were frustrated when they tried to resolve banking issues with customer service by phone or in person.

Many banks and credit unions reward loyal customers who have multiple accounts at the same institution with relationship benefits, like fee waivers, higher APYs on bank accounts, and lower APRs on credit cards and loans. American First Credit Union waives the $10 minimum balance monthly service fee on its Regular, Goal Setter, and Business savings accounts for customers who have another checking account, savings account, or loan with the credit union.

But many credit unions, including American First Credit Union, offer generous perks just for being a member. For example, American First Credit Union members get free financial counseling, along with discounts on insurance, prescriptions, a Sam's Club membership, TurboTax services, and more.

As with most credit unions, American First Credit Union serves a niche community. If you don't qualify for membership or you don't think its offerings are a good fit, here are some alternatives to consider.

Capital One Bank

If you want access to a variety of checking accounts, savings accounts, and CDs with competitive APYs, check out Capital One Bank. Capital One also has savings accounts designed specifically for kids that pay a generous APY. Though it may not offer the same community connection you'd get when you bank at a local credit union, those seeking an in-person connection can visit a branch or a Capital One Cafe.

Discover® Bank

Though it doesn't offer interest checking accounts, Discover® Bank is worth considering if you want to earn rewards on debit purchases. Discover also offers higher than average APYs on savings accounts and CDs, though CDs require a relatively high opening deposit. While Discover doesn't have physical branches, it consistently gets high marks for customer service.

Membership in American First Credit Union is limited, but it could be a good choice for your banking and lending needs if:

• You live in Southern California and want the opportunity to bank locally.
• You want access to free financial counseling and would take advantage of other membership perks, such as prescription and insurance discounts.
• The opportunity to win prizes would motivate you to save more money.

American First Credit Union offers several other products, including credit cards, mortgages, and loans.

American First Credit Union credit cards

• AFCU Credit Card with uChoose Rewards
• Secured Credit Card with uChoose Rewards

American First Credit Union mortgages

• Fixed-rate mortgages
• Adjustable-rate mortgages
• Home equity lines of credit
• Refinancing

American First Credit Union loans

• Vehicle loans and refinancing
• Boat loans
• Motorcycle loans
• RV and motorhome loans
• Unsecured personal loans
• Secured loans that use your share certificate as collateral
• Loans for education

American First Credit Union business banking

• Business checking accounts
• Business savings accounts
• Commercial real estate loans

Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

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