3% interest on checking account worth a hard pull?

[wealthviahealth]

There is a credit union near me that is offering a checking account with 3% interest but I found out they require a hard pull to open the account. I already have a few on my report currently from a car loan and a couple of credit cards. I love the idea of 3% on my emergency fund but am trying to decide if the hard pull is worth it? What do you guys think and do you know of any way to get around them doing the hard pull?

[Catbert]

I'd do it for 3% checking account (assuming that I knew I could meet whatever other requirements there are).  Are you anticipating a need for any more credit in the near future?  I think a hard pull only makes a minor ding for 6 months or so.

[Credaholic]

Depends, are you applying for a mortgage in the next few months? If so I'd wait til after, but if not I'd go for it without worry. A hard pull is really not a big ding, and even if you were applying for a mortgage, they'd likely have you explain all hard pulls, and then they wouldn't care about an inquiry that was just for a savings account.

What credit union is this??

[seattlecyclone]

Yeah, depends on your circumstances. I don't need to get any loans for the foreseeable future, so I really don't care if my credit score goes down a few points. Your mileage may vary.

[Lis]

I believe a hard credit pull lasts 12 months (I still have one showing up on my account from 9 months ago). According to Mint, 0-1 hard pulls at a time is considered "excellent," and "good" is 2-4. Inquiries have a low impact on your score anyway, and for a 3% checking account, I'd say go for it!

And yes, inquiring minds want to know... where are you getting 3%?

[wealthviahealth]

Here are a few of the other requirements to qualify for the 3%
Direct deposit into your Max Checking account
Minimum of 10 debit card purchases per month
Minimum of 4 logins to home banking per month
Be eligible for and sign up to receive eStatements/eNotices

None of these seem like a problem for me but perhaps it could be hard to maintain some months when things get really hectic with work and travel. Certianly the 10 debit purchases could be automated as well.

I am also wondering if I should open a credit card with this union at the same time to make use of the hard pull- they confirmed they would only need 1 pull total.
The cards rewards/ perks are as follows;

3% cash back on gas purchases (up to $500 per month)
or three Reward Points per dollar spent on gas purchases.
2% cash back on all grocery purchases (unlimited)
or two Reward Points per dollar spent on all grocery purchases.
1% cash back on all other purchases (unlimited) or
one Reward Point per dollar spent on all other purchases.
Rate as low as Prime + 6.75% (variable)

None of these are stellar but they are better than the standard 1% on others.

[FrugalFisherman10]

Dude that sounds awesome...especially with the credit card - my BofA free credit card gets those same exact rewards. Is the credit card with them no annual fee?

[Cheddar Stacker]

Yeah, depends on your circumstances. I don't need to get any loans for the foreseeable future, so I really don't care if my credit score goes down a few points. Your mileage may vary.

+1. I'd do it for $20 since I don't really care about my credit report.

There are a lot of these types of bank accounts out there. I've had one at a local bank since 2007 and back then it paid 5.4% interest on your checking account balance. It's slowly dipped down to about 1.9%. Most of these offers tend to reimburse ATM fees as well since a lot of them have few (or no) locations.

[magnuminator]

Very nice.  Wow.  Lake Michigan Credit Union.  Not even remotely close to me, but if I were nearer I'd have to have a look at them. 

3% is up to $15k only, but with the possible exception of the current interest rate environment I don't think you'd want to make a policy of keeping too many tens of thousands in checking.

[Gone Fishing]

How much of a balance are you thinking about maintaining?  What happens if you miss one the qualifyers?
Does it drop to a lower percentage or 0%, does it stay there or come back the next month?

I used to do credit card and gimmicky promotions a lot when I was in college and first married, now I've decided they are probably not worth my time,  but I might get back into it when I am FIRE and have more time on my hands...

[wealthviahealth]

How much of a balance are you thinking about maintaining?  What happens if you miss one the qualifyers?

I am thinking of an initial $5,000 and working this up to about 10k then 15k.
I love the idea of a guaranteed 3%, the only issue is that since I am young, mid 20's , I can afford more risk and would much rather park an additional 15k
in a place where I have the opportunity to gamble on significantly higher returns. 
I normally wouldn't plan on having 15k in cash anyways but if it were earning a guaranteed 3% that is fairly appealing.

[Cheddar Stacker]

How much of a balance are you thinking about maintaining?  What happens if you miss one the qualifyers?

I am thinking of an initial $5,000 and working this up to about 10k then 15k.
I love the idea of a guaranteed 3%, the only issue is that since I am young, mid 20's , I can afford more risk and would much rather park an additional 15k
in a place where I have the opportunity to gamble on significantly higher returns. 
I normally wouldn't plan on having 15k in cash anyways but if it were earning a guaranteed 3% that is fairly appealing.

The IRS pays you to gamble. Interest income is taxed at ordinary rates, while qualified dividends and long-term capital gains are taxed at either 0% or 15% for most people. I'd keep the EF low at $5K and invest the rest. It's still easily accessible and not going anywhere.