Friday, January 9, 2009

5% Interest on Checking!

My local credit union is offering 5% interest on checking accounts. I switched my account today and also deposited my emergency fund in it. The requirements for the account are: to use on-line banking once a month, use a debit card 12 times a month, have direct deposit, and get statements on-line. The only thing I'm not currently doing is using a debit card. I plan to use the debit card for gasoline and grocery purchases. We'll see how the debit card goes for a month. I don't think I will misuse it, but I didn't think I would overuse credit cards either!

The 5% interest rate almost sounds too good to be true. What do you think? Are banks in other places doing this promotion?

Update: I found this article on LazyManMoney about 5% checking accounts.

11 comments:

Sharon Rose said...

Hi there-thats a brilliant deal, well done!

J. Money said...

Wow, 5%! That is incredible...i don't know any places doing that, so GOOD FOR YOU :)

Jolie said...

5% sounds lovely. Be sure you have all the details on the fine print of the account requirements. Would hate to miss an important detail and find out later you owe fees. Good for you!!

Sharon said...

5% does sound almost too good to be true, but it sounds great...where do I sign up? :)

RTC said...

@Sharon
I did a little on-line research. It seems that other banks are doing similiar offers as long as you do 12 debit card transactions/month. I'll put a link to the article in the post.

Money Funk said...

what keeps me in line when using the debit card is keeping track of my expenditures in a notebook daily or every other day. Might be a bit extra work, but well worth it. And you need to hand write it, not 'excel' it.

jpkittie said...

wow - that sounds great!!!! good for you!

RTC said...

Good suggestion, Money Funk. That way I won't "overlook" debits.

Ms. MoneyChat said...

yes, that definitely sounds like a great find. i'm just too bratty to participate in something that makes me have a certain number of purchases. if 12 purchases a month is in your normal course of life, then it's definitely win/win for you. congrats on maximizing your opportunities.

***regarding the debit card usage, are they requiring that you do 12 PIN based transactions or 12 signature transactions. a good friend who lives in the midwest had a similar offer from her bank but they were more restrictive on how she had to use the debit card. it only makes sense because the banks make more money if you do signature based transactions ... i think, or it could be PIN based transactions, either way, it's more money for them. definitely watch the fine print. how long does the rate last?

RTC said...

@ Ms Money Chat
Thanks for the heads up. I'll check on the types of debit card transactions. I think I will do 3 debit transactions a week--2 for food and 1 for gasoline. I don't know how long the 5% rate will last. Good questions!

notesfromthefrugaltrenches.com said...

That is really good! The rates are so low at the moment!