bank rates

Rewards Checking Leader Less Appealing

Rewards Checking Leader Far Less AppealingEven in the face of declining interest rates and balance limits for earning top rates, the rewards checking account at Consumers Credit Union stood out.

Though it capped at $10,000 the balance at which you could earn its top rate — 4.09% APY — it paid decent rates on higher balances.

The top nationally available rewards checking account paid 1.59% on balances between $10,000 and $25,000 and 0.76% on balances greater than $25,000.

As of Oct. 1, however, the Waukegan, Ill. credit union cut its tiered rates for larger balances.

It’s now paying 0.56% APY for balances between $10,000 and $25,000 and 0.35% APY for balances in excess of $25,000.

That’s a big drop that makes this account far less appealing. The previous tiered rates for larger balances rivaled the best savings accounts and 2-year CD rates.

No more.

These new rates can’t even top the pathetic yields we’re seeing on most certificates of deposit.

Consumers Credit Union (www.myconsumers.org) allows anyone to join for only $5, regardless of where they live or work. (You will also be required to hold at least $5 in a savings account.)

This remains the best nationally available deal. There are some local deals that are better. Check your local credit union.

Here are some deals we’ve found:

Gibsland Bank & Trust in Louisiana pays 4.11% APY on balances up to $15,000. Pair its rewards checking account with a savings account that pays 1.51% APY.

Union Square Federal Credit Union in Texas pays 4.51% APY on balances up to $25,000. You’ll earn 1.01% APY on balances above $25,000.

Southern Bank pays 5.01% APY on balances up to $15,000 for savers in Arkansas and Missouri. You’ll earn 1.01% APY on balances above $15,000.

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Comments (2)
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  1. Kathy at Bankaholic said:
    on October 17th at 08:05 am

    These rates are still available.

  2. Kathy at Bankaholic said:
    on October 24th at 08:10 am

    You can still get these rates.