About This Checking Account

Consumer Credit Union’s Rewards Checking currently offers up to 5.09% APY on balances up to $10,000, which is unusually high among checking accounts. In addition, this checking account has no monthly fee, and the requirements for earning the high APY are fairly simple. If you have some extra cash, it may be worth opening one. After all, earning an extra $300-$500 per year is pretty nice.

Basics

  • Interest rate: Three tiers: 3.09% / 4.09% / 5.09% APY (requires completing certain activities)
  • Minimum balance: None
  • Maximum balance eligible: $10,000; amounts above that earn only 0.2% or 0.1% interest
  • Geographic restrictions: None for now. When applying, you also need to become a member of ConsumerCredit Union, which requires a $5 fee
  • Sign-up bonus: None
  • Hard/soft pull: Equifax hard pull, according to data points shared by DOC
  • Monthly fee and early account closure fee: None
  • Insured: NCUA (68588)

Requirements for 3.09% APY

  • Enroll in E-Statements: easy requirement
  • Complete 12 debit card transactions each month totaling more than $100. This is a little annoying, but you can use this card for small purchases. If you have bills like phone, TV, daycare, or utilities, splitting them into multiple payments can make this easy. If not, you can buy Amazon gift cards or do 12 reloads, as long as the total exceeds $100
  • $500 per month in Direct Deposit or ACH transfer: if direct deposit is inconvenient, ACH works fine. Just transfer $500 in each month from a checking account you use regularly, then transfer it back out the next day

Requirements for 4.09% APY

  • Meet all of the 3.09% APY requirements
  • Spend $500 per month on a Consumer Credit credit card

Requirements for 5.09% APY

  • Meet all of the 3.09% APY requirements
  • Spend $1,000 per month on a Consumer Credit credit card

How to Apply

There are a few things worth noting. First, during the account opening process, you must pay $5 to join Consumers Cooperative Association (CCA), and then deposit at least $5. Second, it is reportedly possible to fund the checking account with a credit card. Using a Chase or AMEX card is said to be safer, and the maximum funding amount is reportedly $200, so you might be able to earn an extra $20-$40. Third, according to DOC data points, applying for this checking account results in a hard pull, which means it will appear on your credit report. Personally, I don’t think the impact on your credit score is significant—maybe a temporary drop of 2-5 points. A hard pull for a bank checking account probably is not considered particularly risky behavior either.

Other than that, there’s not much else to watch out for—just follow the steps and fill in your information.

About Their Credit Cards

If you plan to apply for one of their credit cards in order to qualify for the full 5.09% APY, there is one decent option. CCU’s Visa Signature Rewreds offers 3x cash back at supermarkets (up to $6,000), 2x cash back on gas, and 1x on everything else, with no annual fee.

Application Link