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LAST UPDATED: June 27th, 2019
Redstone Federal Credit Union first started in 1951, when the United States Government granted Redstone Federal Credit Union their charter. Redstone originally started with eleven original investors and assets totaling only $55 that was stored in a shoebox. The first Redstone Federal Credit Union branch was located on Redstone Arsenal and so Redstone only served employees of Redstone Arsenal. Today Redstone Federal Credit Union’s headquarters are located in Huntsville, Alabama and has expanded out of a shoebox to service over 50 locations throughout Alabama. Redstone has become the largest credit union in Alabama and the 25th Largest in the nation. Redstone has since expanded their eligibility requirements and after meeting the eligibility requirements, all it takes for someone to become a member is an initial $5 deposit to constitute member ownership in the credit union. Redstone Federal Credit Union takes pride in their business and helping their members succeed. Their mission is to improve the financial well-being of their members and communities by offering trusted advice, choices, opportunities, and solutions. Their core values are respect, integrity, soundness, and excellence.

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The Good

  • Several accounts
  • Certificates
  • Mobile app ratings and features
Redstone Federal Credit Union is a fully-functioning credit union and offers products and services that include savings and checking accounts, business services for sole proprietorships, and investment and insurance services. Redstone also offers their members a real estate department that includes mortgage products and home equity loans.

Several Accounts

Currently, there are five different checking accounts for Redstone members to choose from. Each account has its own unique set of benefits ranging from your basic account with zero balance required and is free, to larger accounts that will allow for a $250 line of credit for overdraft protection. Redstone Federal Credit Union has two savings accounts available to their member to choose from. One is a basic account that a member can personalize to save for anything really. And the other one earns dividends with a .18% rate that is compounded daily and paid quarterly.


Additionally, Redstone Federal Credit Union offers a Member's Choice share certificates to help their members earn higher dividends. All members with certificates will have the option if the annual percentage yield goes higher than when the certificate was originally opened, you will have the option to change it. You can change the rate any time after the first 90 days and then once every 365 days after. They offer terms that range from six months to 60 months and require a $1000 minimum opening balance. There are two different kinds of share certificates to choose from that will suit your lifestyle the best. Depending on how a member wants to use their dividends they can choose a non-compounding certificate and have access to dividends or a compounding certificate and wait for the dividends to mature.

Mobile App Ratings and Features

As an added plus, the apps that Redstone has developed for Android and Apple device users have excellent ratings at 4.6 and 4.5 out of 5. Their current members have raved about how easy it is to access their accounts and utilize all of the tools in the app to make deposits and check balances.

The Bad

  • Fewer locations
  • Little dividend benefits
  • Lower rates and card benefits
Redstone Federal Credit Unions have a few downsides that potential customers should consider beforehand. Some aren't that big of a deal while others might be a big deal for some people.

Fewer Locations

Redstone Federal Credit Union is a much smaller credit union, they seem to be only located in Alabama, but claim they have members worldwide. While they have expanded their eligibility requirements to be more inclusive it looks like the majority of the business that takes part in their service group are located only in Alabama. They are a smaller credit union and ranked 25th nationally; this could be an influence on their ability to carry lower/higher rates to benefit their members.

Little Dividend Benefits

They have five checking accounts that they offer to their members, but none of them seem to offer any kind of dividend benefit, and four out of five checking accounts will accrue a monthly fee ranging from $5-$8 per month when certain maintenance requirements are not met each month. Most credit unions will offer dividend checking accounts that earn an APY of at least .10% and require a small minimum balance. Redstone Federal Credit Union has savings rates that are about average being at .18%. Most credit unions offer basic savings accounts with rates at .20%.

Lower Rates and Card Benefits

Redstone Share certificate rates are below average for a $1000 minimum, compared to other credit unions that will offer a little higher rate when depositing $1000. Lastly, Redstone only offers two types of Visa credit cards and only one of the card options earns rewards and the reward is automatically 1.5% cash back that accrued monthly and paid annually, members don't even get to pick their rewards.

The Bottom Line

Redstone Federal Credit Union has really great apps for their users, and they do offer some really great benefits with their checking accounts. However, with their lack of dividends for checking accounts, all the potential fees for checking accounts, and average to below rates on their savings and share certificates they are less than desirable. Redstone would be a middle of the road credit union to start investing your money, and while they compound daily and pay quarterly, it may take a little bit to see your money grow even though they require higher deposits for the share certificates the rates are still too low to really make a difference in the investment.
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