How much money on deposit do you need at Arizona FCU to recover the $36 in annual fees? About $500,000

How much money on deposit do you need at Arizona FCU to cover the $36 in annual fees? About $500,000!
Arizona Federal Credit Union fees and rates are extremely uncompetitive. Arizona FCU is not a smarter choice.

Arizona Federal Credit Union pays extremely low, uncompetitive rates on its share savings account, only 0.01%. Once you factor in the unavoidable $3 monthly weasel fees, which come to $36 in yearly fees, you could suffer a huge negative return. In fact, in such a scenario, you might be better off burying your money in the backyard or hiding it under your mattress! As a part of Arizona Federal’s “financial education” program, do they explain how this is a big ripoff?

For example, if you have $100,000 in your share savings account, you would earn 0.01% interest which would be $10 in interest earned for the entire year. Then to experience the phony “Power of Us,” you would be paying $36 in fees, for a loss of $26!

Recap
$10 earned at 0.01% interest for $100,000 in share savings account
$36 from $3 monthly weasel membership fees x 12 months = $36
= $26

In order to break even on the annual $36 weasel fees, one would need to have a $360,000 balance in a share savings account!

Recap
$36 earned at 0.01% interest for $360,000 in share savings account
$36 from $3 monthly weasel membership fees x 12 months = $36
=$0 breakeven

However, one would need MORE THAN $360,000 at 0.01% to break even, because the $36 earned on a $360,000 balance would be before tax! Depending on your tax bracket, it might take $500,000 or more to cover the $36 annual weasel fee. $500,000 x0.01% = $50 interest earned. In a 30% tax bracket, $50 interest earned$15 in taxes = $35 remaining, after tax.

That same $500,000 at Ally Bank, at 0.84% = 0.0084 would earn $4200 in annual interest!

See this other post for alternatives, many of which are paying far higher than Arizona Federal Credit Union.
https://arizonafederalcreditunionmembers.wordpress.com/2013/04/02/arizona-federal-credit-union-offers-the-worst-deal-compared-to-all-competitors-2/

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About Arizona Federal Credit Union Members United

Arizona Federal Credit Union Members United is a group of over 100 members and former members who care about our credit union being run fairly. The leadership of the credit union has failed to represent us properly by enacting a new and unnecessary, unavoidable, unconscionable, $3 monthly membership fee that we did not want. The members did not ask for this. Before implementing such a counter-productive fee, the proposal should have been put up for a vote to all the members to decide, so the will of the people is followed. The member-owners of Arizona FCU should not be taxed $3 monthly, simply for being a member. We want all the $3 monthly member fees refunded to all current and past members, the elimination of the fee going forward, and the elimination of the $25 rejoining fee. We are against any financial institution charging an unavoidable ongoing membership fee, simply for being a member. This is the wrong approach. Members and customers should be valued, not punished. We want to see Arizona FCU succeed, not fail. Imposing unfair policies that are detrimental to the long-run success of the credit union and detrimental to society should be abolished.
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