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Learning, Sharing, and Teaching => Investor Alley => Topic started by: ctuser1 on August 11, 2020, 03:28:10 PM

Title: DCU 0.5% APY Checking (up to $25k balance)
Post by: ctuser1 on August 11, 2020, 03:28:10 PM
https://www.dcu.org/learn/member-resources/members-monthly/june-2020-sweep-checking.html

I like their checking product. I've been a member and checking account customer for 15 years now.

Like many other CU's, direct deposit and ACH show up faster compared to banks, and I've never been nickel'd and dime'd with fees.

The 0.5% APY in the checking account is a really good feature. FYI, you also get 6% on up to $1k in the saving account.

No hoops to jump through like many other reward checking accounts.

Me likey!!
Title: Re: DCU 0.5% APY Checking (up to $25k balance)
Post by: ctuser1 on August 13, 2020, 09:56:19 AM
I'm surprised this thread isn't getting any attention.

When I go to bankrate and check rates, I don't get anything else with this combination of flexibility and rate. You have to do nothing at all to get this rate, and this is a fully functional checking account that I can use every day for everything.

There is higher APY available. e.g. https://www.quonticbank.com/high-interest-checking/. But all of them require jumping through hoops (like debit card transactions).
Title: Re: DCU 0.5% APY Checking (up to $25k balance)
Post by: index on August 13, 2020, 10:35:59 AM
Getting excited about 0.5% is tough and you shouldn't really be keeping that much money in a checking account. 0.5% of 8k is $40 a year... Their free ATMs are *until further notice.

DCU just raised their rate to get some more business I am sure. They have had a 0.2% rate since 2012. The savings account is compelling if you want to park 1k there. They offered 3% on the first 1k 2012-2017, 5% 2017-2019, and now 6.17% 2019 thru today. This seems to be a loss leader for them and could be worth your time.

I personally like the combined brokerage w/ checking accounts offered by Schwab and Fidelity. You essentially get the 1-3 Month T-Bill rate on their money market sweep account on your entire cash balance. Any excess can be put into low risk ETFs and withdrawn immediately after sale if you convert the account to a margin account. The accounts come with free checks and ATM cards with fees reimbursed worldwide at any ATM. Fidelity even has free wire transfers   and both let you invest an ACH a day before it settles meaning your paycheck comes in a day early.
Title: Re: DCU 0.5% APY Checking (up to $25k balance)
Post by: RWD on August 13, 2020, 10:45:00 AM
If you're going to have a bunch in checking then Ally already offers 0.5% on checking accounts with $15k or more. I personally don't keep more than maybe $5k or so in checking and sweep everything else to savings (currently 1.0%). So switching would be a gain of about $20 per year which really isn't worth the hassle.
Title: Re: DCU 0.5% APY Checking (up to $25k balance)
Post by: ctuser1 on August 13, 2020, 10:59:41 AM
My emergency fund is currently @$52.4k, seating in Fidelity, earning 0.01%.

Yeah, you read that right. SPRXX is currently yielding 0.01% :-(...

If I can get 0.5% on that money, that's $262/year. i.e. it will pay for my "car property taxes" (yes, CT has that). So I am very tempted to park 25K into two checking accounts (me + DW) with DCU.
Title: Re: DCU 0.5% APY Checking (up to $25k balance)
Post by: ctuser1 on August 13, 2020, 11:01:16 AM
If you're going to have a bunch in checking then Ally already offers 0.5% on checking accounts with $15k or more. I personally don't keep more than maybe $5k or so in checking and sweep everything else to savings (currently 1.0%). So switching would be a gain of about $20 per year which really isn't worth the hassle.

Thx.

Ally savings look compelling for the E-Fund. https://www.ally.com/bank/online-savings-account/

I had an ally account long time ago. Let me see how I can revive that.

DCU is still great for a day to day checking, but no reason to park the E-Fund there instead of Ally.
Title: Re: DCU 0.5% APY Checking (up to $25k balance)
Post by: index on August 13, 2020, 12:17:52 PM
My emergency fund is currently @$52.4k, seating in Fidelity, earning 0.01%.

Yeah, you read that right. SPRXX is currently yielding 0.01% :-(...

If I can get 0.5% on that money, that's $262/year. i.e. it will pay for my "car property taxes" (yes, CT has that). So I am very tempted to park 25K into two checking accounts (me + DW) with DCU.

I was going to suggest Ally for a savings account. They just announced they are lowering their savings account rate to 0.8%. You could always put the fidelity money in MINT. The other option is putting money into I-Bonds at treasury direct. They are still above 1% right now and you don't have to pay tax on the reinvested interested until you turn in the bond. 
Title: Re: DCU 0.5% APY Checking (up to $25k balance)
Post by: theoverlook on August 13, 2020, 12:56:38 PM
My current checking yields similarly to yours (less than .01%), but .5% isn't really worth changing accounts to me. I rarely keep even $10k in checking, so $50/year is just not a motivator to spend hours changing account numbers on things and getting new checks, etc.
Title: Re: DCU 0.5% APY Checking (up to $25k balance)
Post by: PJC74 on August 13, 2020, 07:33:50 PM
I'm more excited about their savings accounts @ 6%. Max is only 1k but we have 6 accounts, my wife and I and 4 kids.
Title: Re: DCU 0.5% APY Checking (up to $25k balance)
Post by: solon on August 14, 2020, 11:56:19 AM
I'm opening an account at DCU. Do you have a referral code I can use?
Title: Re: DCU 0.5% APY Checking (up to $25k balance)
Post by: Catica on August 14, 2020, 01:16:12 PM
Heritage Bank NA offers 1.39% APY up to $25,000. You do need to use debit card 10 times/month to get that rate though.  I just do 10 Amazon gift cards.