6.01% APY Checking

[LeBlanc]

Anybody ever use United Federal Credit Union and their Interest Plus 6.01 Checking? Interest Plus 6.01 Checking - Welcome to United Federal Credit Union

I'm thinking about enrolling with them, even with the requirements for direct deposit, e-statements, and 10 debit card transactions per month. I'm currently with ING Direct at 1.30%. BUT, a little apprehensive about " 6.01% APY guaranteed until at least 2010!"

I'd hate to change all my banking info just for it to go to a terribly low rate.

• Earn High Bonus Rate of 6.01% APY on balances up to $25,000
• Earn High Bonus Rate of 0.25% APY on balances over $25,000
• Earn Standard rate of 0.10% APY IF you don’t meet qualifications
• ATM fee refunds from other financial institutions nation-wide, up to $25.00 per month (does not include international ATMs)

 

[homestead]

Thats even better than the ones I was looking at here.
https://www.checkingfinder.com/

But you know these are all teaser rates.

 

[Alan]

I'd have difficulty making 10 debit card purchases a month.

NOTE: A debit card purchase using your PIN will not count as a Debit Card Swipe and Sign purchases. All direct deposit, ACH and Debit Card Swipe and Sign purchases must post to your account by 6:00pm (EST) on the last business day of the month to count towards that month.

The only time I've made Debit card purchases I've used my PIN. I didn't realize you could tell the grocery cashier "Debit card please but I need to sign rather than use my PIN" The transaction must go through a different process giving the bank a cut similar to a credit card purchase.

I read an article recently on these schemes (can't find it now of course ). From what I recall the writer of the article said that these rates would hold for as long as enough people failed to meet the requirements. If there is a big response to these deals and enough people sign up and continually meet all the criteria to get the 6% then the banks will lose money on these accounts.

I'm not tempted because I am a Penfed credit card holder with cash back (over $400 ytd) so switching from credit to debit is not worth it plus all the aggro of switching auto-payments to the new bank etc.

 

[JustNtime]

Does seem a lil too good to be true or last... I don't seem to qualify for membership either... Sooo.... I guess I won't be in the 10 items or less isle at the grocery store - checking out my 10 items individually to meet the debit card requirement...

 

[ziggy29]

6.01% APY guaranteed until at least 2010!"

A little more than six weeks away.

 

[Buckeye]

Our local credit union (Achieva) pays 3% APY on up to $25,000 if we use our debit card in credit mode for 12 transactions per month. We still use Penfed for fuel purchases but we earn more from the local CU than we can from Penfed on the 12 transactions.

 

[Darryl]

It is only good on $25,000 I've had an account with UFCU at 6.01% since April or May. Great Company!!! They guaranteed they would hold the rate through the end of 2009. I would not expect them to keep it in 2010 though I wouldn't be surprised to find their new rate to be very competitive. They are a very well run company.

 

[LeBlanc]

Here's the latest on their website:
- beginning January 1st our Interest Plus Checking will pay an above market rate of 3.65% APY

 

[pasttense]

"I'd hate to change all my banking info just for it to go to a terribly low rate." That's the key issue: you don't. You just use it as a temporary savings account, keeping $20,000 plus in the account and meet the account requirements. When the interest rate drops substantially you switch your money elsewhere. For the Penfed guy, note that 6% interest is $1200/year for $20,000.

 

[Dreamer]

I was receiving 5.01% through Fairmont Federal Credit Union. You had to do the debit card purchases and auto payments also. It recently lowered to 4.01%. It is still higher than what our bank pays and it has been nice getting the interest.