Redstone Federal Credit Union does not charge a fee to open a checking account

Redstone Federal Credit Union, based in Huntsville, Alabama, offers checking accounts with no opening fee. You pay nothing to create the account itself. However, there are other costs you should understand before you open one — monthly maintenance fees, overdraft fees, and fees for using ATMs outside Redstone's network.

The account type you choose and how you use it will determine whether you pay anything after opening. Some accounts have no monthly fee at all. Others charge a monthly maintenance fee unless you meet certain conditions, like keeping a minimum balance or setting up direct deposit.

Key Takeaways

  • Opening a checking account at Redstone costs nothing — there is no account opening fee.
  • Some Redstone checking accounts have no monthly maintenance fee, while others charge a fee unless you maintain a minimum balance or receive direct deposit.
  • Redstone charges a fee if you overdraw your account, and you will pay a fee to use ATMs that are not part of the Redstone or CO-OP network.
  • You will need a government-issued ID, proof of address, and your Social Security number to open an account in person or online.
  • If you are not yet a Redstone member, you may need to join the credit union first, which also has no fee.

Monthly maintenance fees and how to avoid them

Redstone offers more than one checking account product, and the monthly fee structure varies. Some accounts charge no monthly maintenance fee under any circumstance. Others charge a monthly fee — typically between $5 and $10 — unless you meet one of several conditions.

Common ways to waive a monthly fee include maintaining a minimum balance (often $500 to $1,000), setting up direct deposit of your paycheck, or maintaining a certain number of debit card transactions per month. Ask Redstone directly which account types are available to you and what the current fee structure is, because these details change and may differ based on your membership status or account type.

If you are opening your first checking account and want to avoid monthly fees, ask specifically about accounts designed for new account holders or those with lower balance requirements.

Overdraft and ATM fees you should expect

If you spend more money than you have in your account, Redstone will charge you an overdraft fee. This fee applies whether the overdraft happens at an ATM, through a debit card transaction, or through a check. The fee amount varies but is typically $25 to $35 per overdraft event. Some accounts allow you to link a savings account to cover overdrafts automatically, which may avoid the fee but transfers money between your accounts.

Redstone is part of the CO-OP ATM network, which means you can use thousands of ATMs nationwide without a fee. However, if you use an ATM that is not part of Redstone's network or the CO-OP network, you will pay a fee — usually $2 to $3 per transaction, plus any fee the other bank charges.

What you need to bring to open an account

To open a checking account at Redstone, you will need a government-issued photo ID (such as a driver's license or passport), proof of your current address (such as a utility bill or lease), and your Social Security number. You can open an account online, by phone, or in person at a Redstone branch in Alabama.

If you are not already a Redstone member, you will need to join the credit union first. Membership is open to people who live or work in certain Alabama counties or who are part of specific employer or community groups. Joining Redstone has no fee — you straightforward open a membership account, which is different from a checking account.

Online versus in-person account opening

Redstone allows you to open a checking account online through their website, which is faster than visiting a branch. The online process typically takes 10 to 15 minutes and requires you to upload photos of your ID and proof of address. You will receive your account number when ready and can begin using your account right away, though your debit card will arrive by mail within 5 to 10 business days.

Opening in person at a Redstone branch takes longer but allows you to ask questions and get when ready help. You will leave with a temporary debit card or information about when your permanent card will arrive. Both methods cost nothing.

Comparing Redstone to other credit unions and banks

Redstone's no-fee account opening is standard among credit unions and many banks. The real difference between institutions is the monthly maintenance fee structure and overdraft policies. Some banks charge $10 to $15 per month with no way to waive the fee. Others, like Redstone, allow you to waive the fee by meeting straightforward conditions.

If you are choosing between Redstone and another institution, compare the monthly fee, the minimum balance required to waive it, and the overdraft fee. Also check whether the institution is part of a large ATM network — Redstone's access to CO-OP ATMs is a significant advantage if you travel or do not live near a Redstone branch.

Frequently Asked Questions

Do I have to be an Alabama resident to open a Redstone checking account?

Redstone membership is open to people who live or work in certain Alabama counties, employees of specific employers, or members of certain organizations. You do not have to be an Alabama resident if you meet one of these other criteria. Contact Redstone to confirm whether you are in an area or group they serve.

Can I open a Redstone checking account online if I do not have a printer?

Yes. You can upload photos of your ID and proof of address directly through Redstone's website using your phone camera. You do not need to print anything. If you have trouble with the online process, you can call Redstone or visit a branch in person.

What happens if my account falls below the minimum balance?

If your account type requires a minimum balance to waive the monthly fee and your balance drops below that amount, you will be charged the monthly maintenance fee for that month. You can restore the balance in the next month to avoid the fee going forward. Some accounts do not have a minimum balance requirement at all.

Is there a fee to close a Redstone checking account?

Redstone does not charge a fee to close a checking account. You can close it by visiting a branch, calling customer service, or using online banking. Make sure you have moved any remaining money to another account first.

Can I open a Redstone checking account if I have had banking problems in the past?

Redstone checks your banking history through ChexSystems, a system that tracks closed accounts and overdrafts. Having past problems does not automatically disqualify you, but Redstone may decline if the issues are recent or severe. Contact them directly to ask about your specific situation.