bank rates

Rewards Checking Account Pays 4%

Southwest Airlines Federal Credit Union offers this rewards checking deal.We’ve found a rewards checking account that pays handsomely on balances of as much as $25,000.

Southwest Airlines Federal Credit Union pays 4% APY on its LUV Reward Checking account.

That’s an especially attractive rate since the longtime national standout for rewards checking accounts, Consumers Credit Union, this month cut its interest rate to 3.09% and lowered the top balance for earning that rate to $5,000.

You always have to follow strict rules to earn the top rate on rewards checking, but requirements at Southwest Airlines FCU are a bit more stringent than most.

You must make 15 debit or credit card transactions per month. Most reward checking accounts require 12 debit card transactions.

You also need to have a direct deposit or automatic payment, and sign up for eStatements to earn the great rate.

If you fail to meet the requirements, you’ll earn only 0.10% APY for the month. And portions of your balance greater than $25,000 earn 0.50% APY.

The account has no fees and gives you unlimited free ATM access if you meet the monthly requirements.

It takes just a $30 minimum deposit to open an account at Southwest Airlines Federal Credit Union, and you don’t need to maintain a minimum balance amount to earn the top rate.

The credit union’s CD rates also are worth a look.

Its 36-month CD pays 1.49% APY — just a notch below the best nationally available deal of 1.50% APY.

The rate is good for deposits of between $25,000 and $74,999.

Credit union membership is open to all employees of Southwest Airlines, as well as through 150 “select employee groups” (www.swacu.org).

Membership requires a $5 deposit in a savings account.

The credit union is based in Dallas and has three other branches in Texas and one in Phoenix.

You can start the membership process online and then receive a call from a credit union employee to complete the process. Or you can open an account in person or apply by phone or mail.

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Comments (1)
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  1. Steve said:
    on July 6th at 07:09 am

    Anyone a member of this Credit Union?
    I am interested in becoming your relative.
    Am willing to pay a small fee.
    iahmale@aol.com