Beacon Federal Credit Union out of Texas is offering new and existing customers a rewards checking account yielding 4.60% APY on all balances up to $30,000 (0.51% APY on balances above $30k).
Over the last few months BankVibe has covered several of these rewards checking accounts with high interest rates and have found that they are not for everyone. Although the interest rates are higher than any other form of FDIC or NCUA insured savings/checking/deposit accounts, they come with a few hoops to jump through. Depending on how much money you spend and how many recurring monthly payments you make (ie auto payment, mortgage, etc) you may or may not have an easy time collecting on these rates.
Who should take advantage of rewards checking accounts?
Someone who makes between 10 and 20 debit card purchases per month. This can be a cup of coffee, a tank of gas, groceries, etc. Do you make 10-20 debit card transactions per month (approx. 1 every other day)?
Not only do you need to meet this number of transactions you also need to have (preferably) one auto payment to make every month. If you do, then this requirement can be met very easily. You simply set up a recurring payment with the bank or credit union and have the money automatically paid from this account.
If you think you can meet these requirements but are not quite sure if you can maintain them every month then these accounts probably are not for you. However, if this is something you do regularly with your current bank and you have $25k – $50k in which you would like to have earn a premium interest rate then I would opt for this account or one like it.
Benefits of Checking through Beacon Federal Credit Union:
- 4.60% APY on all balances up to $30k
- Free telephone personal access line (not sure what this includes, sounds like a regular customer service telephone)
- Free ATM card
Please note, these are the benefits stated on their website. The only real benefit I can see is the interest rate, the other “benefits” seem fairly ordinary.
What is required of you to receive 4.60% APY on your checking balance:
- complete 12 check card transactions
- Set up 1 ACH direct deposit or auto debit
- enroll and receive electronic statements (For these accounts this is a must regardless because their rates are subject to change without notification)
To see if you qualify contact a representative at:
telephone: (281) 471-1782