bank rates

Texas Credit Union’s Checking Pays 3.51%

Residents living in southeastern Texas can earn healthy rates on checking and savings accounts at MCT Credit Union.

MCT (, which is headquartered in Beaumont, Texas, pays 3.51% APY on balances up to $25,000 for its Kasasa Cash rewards checking account and 1.50% APY on its Kasasa Saver account, linked to rewards checking, on balances to $25,000.

The savings rate is a quarter of a percentage point higher than the best nationally available deal.

That being said, we have reservations about this credit union because its deposits are not federally insured. Rather, MCT holds private mortgage insurance up to $250,000 per account.

Now, there’s nothing to suggest private mortgage insurance won’t be there if a credit union fails, but it’s not the same as having the backing of the federal government, which banks insured by the FDIC and credit unions insured by the NCUA have.

While most credit unions are insured through the National Credit Union Administration, a few states allow credit unions to opt for private mortgage insurance instead.

You can tell which form of insurance your credit union has by looking at the bottom of its website. If it doesn’t have an NCUA designation, it should have a private insurance logo, much like MCT has.

MCT’s savings rate tops the best nationally available deal of 1.25% APY offered by TIAA Direct, the new online bank owned by the retirement services provider TIAA-CREF.

And the rewards checking deal is more attractive, even though it pays less than best nationally available deal of 4.09% APY at Consumers Credit Union ( of Waukegan, Ill.

That’s because Consumers pays its top rate on balances up to just $10,000.

Any portion of the balance that falls between $10,001 to $25,000 earns 0.56% APY at Consumers. And anything above that amount earns 0.35% APY if monthly qualifications are met.

To get the 3.51% APY at MCT Credit Union, you need to make 10 check card purchases per month, have one direct deposit, automatic payment or bill pay and receive eStatements. Any portion of the balance above $25,000 earns 0.25% APY. And you’ll get 0.13% APY if you don’t meet the monthly requirements.

The Kasasa Saver has a similar structure. You must fulfill the rewards checking requirements to earn 1.50% APY. Balances above $25,000 earn 0.25% APY, and if you fail to meet the requirements, you’ll get 0.13% APY on your total balance.

MCT Credit Union is headquartered in Port Neches, Texas, and has five offices in the area. You can also open your account online.

Membership is open to anyone who lives or works in Hardin, Jefferson or Orange counties.

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Comments (2)
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2 Existing Comments
  1. Karen said:
    on March 1st at 08:37 am

    Morning, Just wanted to let everyone know that the rate on this account has dropped to 3% as of 3/1/2012. Fancy that, just two days after you do a nice write up on this credit union. I will say that I have had an account here for 4 years since it started out paying 6.00% in 2008 and have had no problems.

  2. Mike Cetera said:
    on March 1st at 08:51 am

    Karen: Thanks for alerting folks to this. That’s too bad. The top rate is now 3.01% APY on the Kasasa Cash and 1.00% APY on the Kasasa Saver.