Redstone Federal Credit Union

What Redstone Federal Credit Union does

Redstone Federal Credit Union is a federally chartered, member-owned cooperative financial institution headquartered at 220 Wynn Drive in Huntsville, Alabama, founded on November 28, 1951 at Redstone Arsenal to serve soldiers and Department of Defense staff. As of 2024, it holds $7.55 billion in assets, serves 780,600+ members, and operates 28 branches across the Tennessee Valley in North Alabama and Middle Tennessee, making it the largest member-owned financial institution in Alabama and one of the top 20 federal credit unions nationally by assets.

The credit union's core product portfolio spans personal and business banking (checking, savings, share certificates up to 4.18% APY), consumer and commercial lending (auto, mortgage, RV, commercial real estate, lines of credit, microloans), Visa Signature and Traditional credit cards, and investment services (401(k), IRA, annuities, mutual funds, managed accounts, online brokerage, 529 plans). Ancillary services are delivered through wholly-owned subsidiaries Redstone Family Realty (powered by ERA Real Estate, acquired June 2020) and Redstone Insurance Services. Technology distribution includes award-winning mobile apps on iOS/Android/Amazon, online banking, Redstone Live video banking, Interactive Teller Machines at branch drive-thrus, PayNearMe cash-payment integration, and a distinctive Schools Program operating student-run branches at 10 high schools and 3 universities.

Redstone's business model is interest-income-led with diversified fee streams from account charges, credit card interchange, and mortgage origination. The cooperative structure requires returning at least 40% of net income to members — $33 million was redistributed in 2017 alone via dividends, cashback, reduced fees, and competitive rates. Distribution combines a regional physical branch and ATM network with digital channels; GTM is hybrid (direct-to-consumer + community-led), with growth driven by the RFCU Schools Program pipeline, federal-employee affinity (NASA Marshall, Redstone Arsenal), and strategic partnerships including the flagship Rural King co-branded financing program.

Name

Redstone Federal Credit Union

Legal name

Redstone Federal Credit Union

Website

https://redfcu.org

Company type

Private

Founded year

1951

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Redstone Federal Credit Union is a federally chartered, member-owned cooperative founded in 1951 at Redstone Arsenal, now serving 780,600+ members with $7.55 billion in assets across 28 branches in North Alabama and Middle Tennessee, offering consumer and business banking, lending, credit cards, investments, and student-run school-branch financial education.

Ownership category

akta.pro rank

Product category

Retail Banking (Credit Union)

NAICS

Credit Unions (522130), Credit Card Issuing (522210), Commercial Banking (52211)

SIC

Savings Institution, Federally Chartered (6035), National Commercial Banks (6021)

akta.pro primary industry

Community Credit Unions (Retail/Consumer Focus) (FSABAEAA)

akta.pro secondary industries

Student/University Credit Unions (FSABAEAJ), Credit Cards & Revolving Credit (FSABAAAC), Bank & Credit Union Personal Loans (Unsecured Installment) (FSAKAAAL)

Keywords

• Retail banking
• Consumer lending
• Commercial lending
• Mortgage services
• Wealth management

Headquarters

HQ city

Huntsville

HQ country

United States

HQ region

North America

Offices13 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others

Revenue model

1. Interest Income: Primary revenue from interest earned on loans including auto loans, mortgages, personal loans, home equity lines of credit, and credit cards. Competitive rates offered to members.
2. Account Fees: Monthly maintenance fees, ATM fees, overdraft fees, and other account-related charges. Lower fees emphasized versus traditional banks.
3. Credit Card Interchange: Revenue from credit card transactions including Visa Signature and Visa Traditional cards with cashback rewards
4. Mortgage Lending: Home loan origination and servicing through mortgage center

Pricing tiers

Go-to-market motion2 records

Distribution channels10 records

Marketing channels8 records

Core offering

Redstone Federal Credit Union is a member-owned federal credit union providing personal and business banking products, consumer and commercial loans, mortgages, credit cards, and investment services to members across the Tennessee Valley. Operating 28 branches in North Alabama and Middle Tennessee, the institution delivers service through physical branches, mobile and online banking, Redstone Live video banking, Interactive Teller Machines (ITMs), and a broad ATM network. Core offerings include deposit accounts, share certificates, auto and personal loans, home mortgages, Visa credit cards, 401(k)/IRA/annuity/mutual fund investment products, and commercial lending for small businesses.

Product overview

Redstone Federal Credit Union is a member-owned financial institution offering a comprehensive suite of banking products and services through multiple channels including branch locations, mobile and online banking, video banking (Redstone Live), and ITMs. The core product portfolio includes personal and business checking/savings accounts, share certificates with rates up to 4.18% APY, personal loans, mortgages, auto loans, recreational vehicle loans, and Visa Signature/Traditional credit cards. Investment services encompass 401(k), IRA, annuities, mutual funds, managed accounts, online brokerage, and college investment plans. Supplementary services include loan protection insurance, financial calculators, and wellness education. The credit union operates a unique Schools Program with student-run branches at multiple high schools and universities, providing financial literacy and real-world work experience. Community initiatives include the Community Champions recognition program and Acts of Brightness community giving program. Redstone also offers affiliated services through Redstone Family Realty and Redstone Insurance Services. Digital banking features include award-winning mobile apps, Redstone Live video banking, PayNearMe payment integration, and card control features.

Differentiator

Problem solved

Functional benefit

Brands

• Redstone Live: On-demand, face-to-face video banking service accessible via mobile device or computer
• Redstone Family Realty
• Redstone Insurance Services
• Redstone Realty

Products and services

• Personal Checking Personal checking accounts with features including debit cards, online bill pay, and mobile deposit capabilities for individual members in the Tennessee Valley.
• Personal Savings Personal savings accounts including Star Club Savings with up to $200 matching for children's first accounts, and Brighter Day Savings for the Redstone Round Up automated savings program.
• Share Certificates Certificate of deposit accounts with rates up to 4.18% APY, including 8-month Jumbo Certificates, 6-month Starter Certificates, and 12-month No-Penalty Certificates.
• Mobile Banking App Award-winning mobile banking application enabling 24/7 access to account management, transfers, check deposits, loan applications, and Redstone Live video banking on iOS, Android, and Amazon devices.
• Online Banking Comprehensive online banking platform for managing accounts, transfers, bill payments, and accessing financial tools 24/7 via redfcuonline.org.
• Redstone Live Video Banking On-demand video banking service providing face-to-face consultations with representatives via mobile device or computer for account questions, loan applications, and account openings.
• Interactive Teller Machines (ITMs) Video teller services available at branch drive-thrus with extended hours (7am-6pm weekdays, 9am-5pm Saturdays), providing real-time video interaction with a teller for deposits, withdrawals, and other transactions.
• Personal Loans Various personal loan products including signature loans and emergency loan options such as the Payday Loan Alternative for individual members.
• Home Loans / Mortgages Mortgage products including 30-year fixed rate mortgages with competitive rates and low closing costs, supported by a dedicated Mortgage Center (mymtg.redfcu.org).
• Auto Loans Vehicle financing with rates as low as 4.75% APR for new cars for individual members.
• Recreational Vehicle Loans Financing options for RVs, boats, and other recreational vehicles for individual members.
• Visa Signature Credit Card Credit card offering 30,000 bonus MyChoice Rewards points for spending $3,000 in first 90 days, with cashback rewards for individual members.
• Visa Traditional Credit Card Traditional credit card with competitive rates and cashback rewards program for individual members.
• Business Checking Business checking accounts with services tailored for commercial members in the Tennessee Valley.
• Business Savings Business savings accounts with competitive rates for commercial members.
• Cash Management Cash management services for business members including wire transfers and treasury management functions.
• Business Credit Cards Credit card products available to business members of the credit union.
• Commercial Real Estate Loans Loans for commercial property acquisition and development for business members.
• Business Lines of Credit Flexible credit lines for business operational needs and working capital.
• Business Term Loans Fixed-term loans for business expansion, equipment purchases, and refinancing for business members.
• 401(k) Investment Services Retirement planning services including 401(k) account management and investment advice for individual members.
• IRA Investing Individual Retirement Account options including Traditional and Roth IRAs for retirement savings.
• Annuities Annuity products for retirement income planning available to members.
• Mutual Funds Managed mutual fund investment options offered through partnership with the investment team for members.
• Managed Accounts Professionally managed investment accounts with personalized portfolio management for members.
• Online Brokerage Access Self-directed brokerage platform for stocks, bonds, and other securities trading for members.
• College Investment Plans Education savings plans including 529 plans for college funding for members and their families.
• Redstone Family Realty Real estate services including buying and selling of residential and commercial properties, powered by ERA Real Estate. Part of Redstone's one-stop lineup of services alongside mortgage and title.
• Redstone Insurance Services Insurance products and services offered through a Credit Union Service Organization (CUSO) partnership for the benefit of members.
• Furlough Loan Special-assistance loan at 2% fixed APR up to $5,000 or member's net monthly pay, with first payment delayed 60 days; offered to federal employees during government shutdowns.

Quantifiable outcome

• Returned $33 million in member givebacks in 2017 through dividends, rebates, and fee reductions
• +5 more outcomes

Named customers12 records

Segments5 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature4 records

Partnerships

Ten partnerships are on record, tiered core and flagship.

• American Heart AssociationcoreStrategic or Co-development Partner · 24 May 2021Partnership to provide CPR Anytime Kits to five local high schools (Bob Jones, James Clemons, Hazel Green, Sparkman, Jemison). Each kit trains 10-20 people in CPR. Supports community health and student safety.
• ERA Real EstatecoreOEM/ Whitelabel/ Licensing Partner · 1 June 2020Redstone Family Realty LLC, powered by ERA Real Estate, provides real estate services as part of Redstone's one-stop lineup of services. Continues operation of offices in Huntsville, Madison, and Decatur with Ben Porter's experienced Realtors.
• North Alabama Revolving Loan FundcoreStrategic or Co-development Partner · 25 March 2020Nonprofit subsidiary of Neighborhood Concepts Inc. Redstone provided $1.5 million for emergency loans up to $25,000 to help small businesses survive COVID-19 economic downturn.
• University of Alabama in Huntsville (UAH)flagshipStrategic or Co-development Partner · 26 September 2019Student-run branch in UAH Charger Union. First branch on largest college campus in north Alabama. Part of expanding schools program that also includes 10 high school branches.
• Rural KingflagshipStrategic or Co-development Partner · 1 August 2019Partnership with national farm and home retail chain (120+ stores) to provide on-the-spot financing for power equipment loans and co-branded credit product. Required new technology investment, 30 new employees, and seamless end-to-end digital process launched in under 6 months.
• Calhoun Community CollegecoreStrategic or Co-development Partner · 24 January 2019Student-run branch in Brewer Library on Decatur campus. Second college campus branch after Alabama A&M. Serves approximately 10,000 students, faculty, and staff. Handles new account openings, account maintenance, and signature loans.
• PayNearMecoreTechnology or Integration · 1 January 2019Partnership enabling members to make loan and credit card payments online, via text, or in person at participating retailers nationwide. Payments guaranteed with real-time notification. Supports bank account (ACH), debit card, Apple Pay, Google Pay, and cash payments at retail locations.
• The Catalyst Center for Business & EntrepreneurshipcoreStrategic or Co-development Partner · 8 August 2018Partnership to provide microloans ($5,000-$25,000) for startups, early stage businesses, and established small businesses in Huntsville metro area. The Catalyst provides loan support services before and after the loan is made.
• Neighborhood Concepts Inc.coreStrategic or Co-development Partner · 8 August 2018Partnership to provide microloans ($5,000-$25,000) for small businesses. Neighborhood Concepts makes the loans using funds provided by Redstone. Also operates North Alabama Revolving Loan Fund for emergency COVID-19 loans up to $25,000.
• Alabama A&M UniversityflagshipStrategic or Co-development Partner · 1 January 2017First university student-run branch. Branch in place since 2018, celebrating 5 years of partnership in 2023. Students from AAMU serve as tellers gaining real-world work experience.

Scale indicators12 records

Recent moves11 records

Expansion highlights6 records

Direct peers

• Navy Federal Credit Union: The largest U.S. credit union by assets with a military and federal-affiliated membership base, similar to Redstone's Redstone Arsenal / DoD origins. Compares directly on member-focused cooperative model, defense-affinity membership, and full-service retail deposit and lending products.
• Pentagon Federal Credit Union (PenFed): Federally chartered credit union serving military members, veterans, and DoD civilians — directly comparable common-bond focus to Redstone. Offers the same suite of consumer banking, lending, and credit-card products.
• Boeing Employees Credit Union (BECU): Large member-owned credit union serving a defined affinity group with full retail banking, mortgage, and investment services. Comparable scale tier to Redstone ($7B+ assets) with similar cooperative philosophy and member giveback programs.
• SchoolsFirst Federal Credit Union: California-based credit union serving K-12 and higher-ed educators with extensive student/youth financial education programs. Comparable to Redstone on affinity-based membership, school branch network (analogous to RFCU Schools Program), and comprehensive retail banking.
• State Employees Credit Union (SECU): Large North Carolina state-chartered credit union with member-owned cooperative structure and broad retail/banking services. Comparable on scale (multi-billion asset credit union), member-focused giveback culture, and community branch footprint.
• VyStar Credit Union: Florida-based credit union of similar asset size (~$10B) offering full-service consumer and commercial banking. Comparable digital-channel investments and member-value proposition.
• Desert Financial Credit Union: Arizona-based community credit union with similar deposit/lending product set and member-owned cooperative model. Comparable tier to Redstone in assets and community-brand differentiation strategy.

Regional players

• Listerhill Credit Union: North Alabama-headquartered credit union with overlapping branches in the Huntsville / Shoals region. Directly competes with Redstone for federal-employee and consumer members in shared North Alabama geography.
• Alabama Credit Union: Statewide Alabama credit union offering consumer banking, lending, and mortgage products to employer-affinity groups. Competes with Redstone in shared Alabama territory for SMB and consumer members.

Emerging players

• Connexus Credit Union: Mid-large size credit union (~$5B assets) comparable in digital-first strategy, video banking capabilities, and member-growth ambitions. Similar asset tier provides a public benchmark for Redstone's operational and financial KPIs.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xtwitter.com/redstonefcu
• YouTubeyoutube.com/user/redstonefcu
• Facebookfacebook.com/RedstoneFCU
• LinkedInlinkedin.com/company/redstone-federal-credit-union
• Instagraminstagram.com/redstonefcu

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Subsidiaries3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Redstone Federal Credit Union