Best "interest checking" account in Connecticut paying 4.10%

March 14, 2010 No Comments »

In February of last year we touted First New England Federal Credit Union’s interest checking account as one of the highest yielding on the market. And today, while not the highest, it remains near the top.

In February of 2009 this account was providing yields of 5.15% APY on balances up to $25,000. Today this account still provides a whopping yield of 4.10% APY, however limits balances to $15,000 (any balance exceeding that amount will only garner 0.50% APY). When taking into consideration the nose dive many interest checking account rates took over the last year, this account looks pretty rewarding. The top long-term CD rates in Connecticut aren’t even paying out these rates.

Features of Rewards Checking Account from FNFCU:

  • 4.10% APY – This is a variable rate and is subject to change without notice.
  • ATM Refunds – $25 in ATM refunds per cycle IF requirements are met.
  • No fees or minimum balance requirements.
Requirements to earn 4.10% APY and ATM refunds:
  • make 12 clearing debit card transactions per month. This does not include cash withdrawals.
  • Set up one direct deposit or ACH auto debit to your high interest checking account.
  • Enroll in e-services with your rewards checking account.

You must be a member of First New England Federal Credit Union to take advantage of this offer. This account is federally insured by the NCUA. To learn more visit their promo page for this account.

Interest checking vs. Money Market:

Whenever we cover these rewards checking accounts we always get readers wondering why their APY’s or so much higher than traditional money market accounts when they appear, on the surface, to be roughly the same thing.

The answer lies in the monthly requirements. Money market accounts generally want to limit withdrawals or transactions made with the account. Usually these accounts set these limits to around 6 per month. With rewards checking accounts, they encourage the consumer to make purchases with the account – in fact, it’s almost always required monthly (see requirements to earn the advertised APY on this account above).

In a nut shell, think of money market accounts more closely aligned with savings accounts or even bank deposits, where as a rewards checking account is a more active account more closely aligned to a standard checking account.

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