Raritan Bay Federal Credit Union's rewards checking account

August 21, 2009 No Comments »

Raritan Bay Federal Credit Union out of New Jersey has a very nice Rewards Checking Account which is paying a whopping 5.01% APY on all balances up to $25,000 (earn 1.01% APY on balances above $25k). This currently smashes the national average for money market accounts, which currently sits at a meager 1.20% APY. However, like many other interest checking accounts we have covered in the past, this one comes with a few strings attached.

Thanks to BankVibe reader Tim for sending this one in!

4 monthly qualifications must be met to earn the advertised interest rate:

  • 8 Mastercard signature based purchases
  • set up one recurring direct deposit or authorize and automatic monthly transfer from this account
  • enroll and receive statements electronically (e-statements)
  • access online banking and enroll in online bill pay

If you can meet the above requirements and have a large lump sum (less than $25k) in which you would like to have earn an optimal interest rate, then this account is probably your best bet.

Additional Account Features:

  • free ATM use nationwide (ATM surcharge refunds every month from Raritan Bay Fed CU)
  • No monthly service fees associated with this account
  • earn 1.01% APY on balances above $25,000
  • Average daily balance method used to calculate dividends

Raritan Bay Federal Credit Union, founded in 1941, controls roughly $70 million in deposits and nearly $40 million in loans. They have almost 10,000 members and just 32 employees in their 4 locations in New Jersey.

Contact them at (732) 727-3500

Our take:

While interest rates in general are scheduled to decline, the APY’s provided on these rewards checking accounts will likely stay comfortably above those offered through money market accounts or certificates of deposit. We would recommend finding an account with monthly terms that are easily manageable so that you can both earn the advertised interest rate and have the free cash withdrawals.

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