Author Topic: Is there a catch? Credit Union Share draft account 3% APY  (Read 514 times)

bluequakeralex

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Is there a catch? Credit Union Share draft account 3% APY
« on: April 04, 2020, 11:56:01 AM »
https://www.greateriowacu.org/personal/save-spend/deposit-rates/

Search "Greater Checking™ (Qualifying)**"
A 3% rate is nearly double any savings account rates I've found online.

Is this just a credit union version of a checking account?
Or, am I missing something critical?

It just seems too good.
*No monthly fees or minimum deposits?

Does the below mean 20 x $100 transactions? Because that'd be a large amount taken away from credit card use.

If it's only like 20 x $5 transactions = $100, then that's easy.

Quote
• Have at least twenty (20) debit card purchases totaling $100 (PIN based or signature based) from Greater Iowa debit card, and the purchases must post and settle prior to the close of business on the last business day of the month,
« Last Edit: April 04, 2020, 12:01:57 PM by bluequakeralex »

bluequakeralex

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Re: Is there a catch? Credit Union Share draft account 3% APY
« Reply #1 on: April 04, 2020, 12:14:21 PM »
Hmm, if those 20 exclude ACH payments then this'll be more difficult.

nalor511

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Re: Is there a catch? Credit Union Share draft account 3% APY
« Reply #2 on: April 04, 2020, 12:20:05 PM »
Since it says PIN or Signature, it's pretty clearly excluding ACH I'd think

Paul der Krake

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Re: Is there a catch? Credit Union Share draft account 3% APY
« Reply #3 on: April 04, 2020, 12:25:58 PM »
These high yield checking accounts always have debit card requirements and are never worth anyone's time. This is about as worthwhile as doing surveys online.

bluequakeralex

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Re: Is there a catch? Credit Union Share draft account 3% APY
« Reply #4 on: April 04, 2020, 12:31:28 PM »
Since it says PIN or Signature, it's pretty clearly excluding ACH I'd think

Thanks for the confirmation. This may not be as feasible as it first seems.
This requires more calculations then to see if it is even worth it.

The benefit provided by keeping money (up to $20k) in this account vs any other (3% vs 1.6%) so, 1.4%. So, at most $280/yr.
vs,
The decrease in 2% cash back rewards from a diverting credit transactions.

bluequakeralex

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Re: Is there a catch? Credit Union Share draft account 3% APY
« Reply #5 on: April 04, 2020, 12:36:58 PM »
These high yield checking accounts always have debit card requirements and are never worth anyone's time. This is about as worthwhile as doing surveys online.

heh, thanks. The high amount of needed debit card transactions was harder to meet then I thought. We didn't have enough small recurring card purchases to divert.

Psychstache

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Re: Is there a catch? Credit Union Share draft account 3% APY
« Reply #6 on: April 04, 2020, 04:00:02 PM »
Yeah, no ACH, you have to make transactions.

I have one that is 2.5% and 15 transactions of at least 5 dollars per month. In about 7 years of having the account, i have missed on qualifying 2 times total (one being this past month  not really spending money right now) with basically no effort to change my spending or habits. It's been quite nice.

Michael in ABQ

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Re: Is there a catch? Credit Union Share draft account 3% APY
« Reply #7 on: April 07, 2020, 07:27:27 AM »
I've got an old account at a credit union and they started offering a 3% savings account about 18 months ago. No catch except it's only on the first $2,500. After that the rate drops to 0.25% on anything above.

Actually I just went to check and it's down to 2% now. I guess the Fed slashing interest rates will do that.

My other online savings account had gone as high as 2.3% in February of last year. They emailed me each time they raised the interest rate 5-10 basis points. Funny how they didn't do that when they started dropping it. I didn't have much in there but it looks like it was down to 2% a few months ago and now it's at 1.75%.

Rosy

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Re: Is there a catch? Credit Union Share draft account 3% APY
« Reply #8 on: April 07, 2020, 02:31:38 PM »
Most everyone is dismissive of the accounts that give you 2% to 4% on up to $3K or $4K, because by themselves it doesn't seem like a lot but I find that if the two of us do three of them each it is well worth it - as long as I am not required to jump through hoops like twenty transactions in a month.

If you are a T-Mobile customer they have a checking account that pays 4% on $3K and 1% on everything above that.
Online account only with a debit card, FDIC and all that.
The only requirement is to deposit $200 a month which you can transfer from your regular checking and transfer back out whenever you want.
I just use it as a savings account with a guaranteed 4% payout each month for the $3K.
Every time the other deposits (of $200 mo) reach $500 I transfer them right back out to the regular checking at my local credit union - which pays the same 1% up to $10K.
There is no minimum and there are no fees of any kind but they hold your deposit five days just like my credit union does which is a nuisance.

I'm not a fan of being forced into transactions, but if you can make it work for you why not.

As far as savings or CD's
Navy Federal CU has a 3.5% CD for up to $3K that you can open with the full $3K or only $50 and then deposit whatever, whenever up to $3K. It is sort of a running special - in the three years I've had an account with them they offer one annual CD, called Easy Start to each customer every year.

NFCU consistently has good CD offers - well, maybe not anymore after all of this mess:). I have another CD maturing this year @3.25% but they recently still had a 2.25% interest 17 mo CD for up to $75K that you can add to until you reach $75K or open with $75K.
To my surprise, they sent out notifications that they will waive the CD penalty for early withdrawal if I needed the money due to the pandemic. Amazing.

Mid Florida CU still has a holiday savings account that pays 2% up to $4K (was 3% last year). It's only a $5 penalty to access the money if needed.
It's always worth a look to see what your local credit unions offer, just look at the accounts descriptions on their website.

As far as your Iowa CU in question - look it up in the search function at doctorofcredit.com (an excellent, reliable blog) and read up on the deal and how others make it work or not. You'll find a complete review as well as tons of comments to guide your decision making on just about every good deal out there.