Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Checking account pays 3.04%
Old 10-11-2015, 02:46 PM   #1
Full time employment: Posting here.
jjquantz's Avatar
 
Join Date: Jan 2014
Location: Northern Virginia
Posts: 847
Checking account pays 3.04%

The latest news from my CU is that they will make a new checking account option available later this month. The highlights are:

No minimum daily balance
No monthly service fee
No fees at their ATMs
Refund of non-CU ATM fees up to $10/month
3.04% interest on up to $20,000

Requirements:
Use your debit card for at least 20 purchases each month
Have ONE direct deposit of greater than $100 OR
Pay ONE bill with their Billpay tool (free)
Enroll in the electronic statements option

If you don't meet the requirements, you get .01% interest for the month.
Amounts above $20,000 are paid 0.15%

No info at this time about how the interest rate might change.

It looks like it will be a great place to park $20K.
__________________

__________________
jjquantz is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-11-2015, 02:55 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 2,971
It would be a big hassle to use a debit card 20 times every month. If I used a debit card instead of cash i'd use it abut 6 times per month. I would have to fill up the gas tank a couple gallons at a time and make multiple trips to the grocery store every week instead of 1 to get to 20 per month. Not sure it would be worth it.
__________________

__________________
aaronc879 is offline   Reply With Quote
Old 10-11-2015, 03:02 PM   #3
Recycles dryer sheets
 
Join Date: Oct 2013
Posts: 204
3% is great, but the $20K cap keeps you from earning serious money.

I have even a sweeter deal, through my wife (if I can believe it and get through the language barrier) )and red tape. There is a credit union in NYC that pays 3.25% on IRA savings:

https://www.selfrelianceny.org/rates#savings

The big catch is that you basically have to be Ukrainian (which she is) or possibly be of Ukrainian decent to qualify. The min is $0K- there is no max. But you have to qualify (which we have done and have established a small joint account) and they don't seem to be friendly or speak decent English. I am going to move some megacorp 401K money to them this week.
__________________
.................................
A life without beer is not worth living
Nunthewiser is offline   Reply With Quote
Old 10-11-2015, 04:32 PM   #4
Full time employment: Posting here.
jjquantz's Avatar
 
Join Date: Jan 2014
Location: Northern Virginia
Posts: 847
Quote:
Originally Posted by aaronc879 View Post
It would be a big hassle to use a debit card 20 times every month. If I used a debit card instead of cash i'd use it abut 6 times per month. I would have to fill up the gas tank a couple gallons at a time and make multiple trips to the grocery store every week instead of 1 to get to 20 per month. Not sure it would be worth it.
The 20 transactions per month is a big hill for us. I suppose I could go to McDonalds 20 times per month and get a $1 Coke. Let's see, 3% of $20,000 is $600. Divided by 12 months would be $50/month interest - So I could net $30/month giving me an effective rate of 1.8%.
__________________
jjquantz is offline   Reply With Quote
Old 10-11-2015, 04:42 PM   #5
Thinks s/he gets paid by the post
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 2,470
Quote:
Originally Posted by jjquantz View Post
Let's see, 3% of $20,000 is $600. Divided by 12 months would be $50/month interest - So I could net $30/month giving me an effective rate of 1.8%.
The one good thing about low interest rates is we pay less tax on our earned interest. Got to look for something good out of all of this "stuff".
__________________
Car-Guy is offline   Reply With Quote
Old 10-12-2015, 12:39 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,326
Quote:
Originally Posted by jjquantz View Post
The 20 transactions per month is a big hill for us. I suppose I could go to McDonalds 20 times per month and get a $1 Coke. Let's see, 3% of $20,000 is $600. Divided by 12 months would be $50/month interest - So I could net $30/month giving me an effective rate of 1.8%.
When I had an account like that I'd go to a grocery store with a self check out in off hours and do a several transactions in a row.
__________________

__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
From totally free checking to totally fleece checking easysurfer FIRE and Money 47 06-30-2012 02:23 AM
VanguardAdvantage Checking Account TromboneAl FIRE and Money 6 10-26-2006 01:42 PM
Do You Reconcile Your Checking Account? TromboneAl FIRE and Money 66 09-13-2006 01:23 PM
How much cushion do you leave in your checking account free4now FIRE and Money 40 09-10-2006 10:57 PM
Checking Account mickeyd FIRE and Money 9 09-09-2006 05:13 PM

 

 
All times are GMT -6. The time now is 11:42 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.