Checking account pays 3.04%

[jjquantz]

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.

 

[aaronc879]

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.

 

[Nunthewiser]

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.

 

[jjquantz]

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%.

 

[Car-Guy]

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".

 

[daylatedollarshort]

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.