bank rates

Wow! Earn 3% With This Savings Account

Baxter Credit Union doubles your savings rate after a year.It’s pretty rare these days to find a deposit account that pays 3%.

But Baxter Credit Union in Illinois pays just that on its Rainy Day Savings account. (That’s the same rate it paid back in 2010, when we first profiled this 140,000-member credit union.)

Before you get too excited, there are a few caveats to explain.

First, this is an account designed for savers who can set money aside each month and leave it there.

Second, and more importantly, you don’t earn the 3% right away.

Here’s how the savings account works:

  • To open the account, you can deposit any amount up to $1,000, and then you need to put at least $25, but no more than $500, into the account each month for 12 months. So, after a year, the maximum you can deposit is $7,000.
  • During that time, you’ll earn 1.50% APY on your balance.
  • After 12 months, your rate going forward doubles, bumping the yield to 3.00%.

But there’s a big catch.

The rate you double is the rate the account carries at the end of 12 months. If it’s still 1.5% APY, you’ll begin earning 3.0%.

But the rate could change during the year.

So, if the standard rate falls to 1.25% APY during the next year, you’ll begin earning 2.50% APY after 12 months instead of 3%.

Here’s the best part: That doubled savings rate won’t change as long as you keep making monthly deposits.

If you don’t make the minimum deposit in a given month, you’ll earn the regular share account rate, which is only 0.05% APY, for that month.

You’re also limited to only two withdrawals per year. Extra withdrawals will cost you $25 each.

Credit union membership is open to employees in dozens of companies, and BCU has service centers near in 11 states from New York to California, and in Puerto Rico.

Eligibility is also extended to anyone who lives in all or part of five Illinois counties near Chicago – Cook, DuPage, Kane, Lake and McHenry — and Kenosha County, Wis.

If you qualify, you can join online at; membership costs only $5.

If you aren’t eligible for BCU membership, your best bet available nationally is offered by TIAA Direct (, which pays 1.25% APY on its High Yield Savings account.

You just need to make a $25 minimum deposit to open an account with TIAA Direct. The rate of 1.25% APY applies to all balances. TIAA Direct is a division of TIAA-CREF Trust Co.

You can see how these rates compare to the best savings and money market account rates from our extensive database of banks.

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Comments (1)
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One Existing Comment
  1. Kathy at Bankaholic said:
    on May 7th at 08:55 am

    Baxter’s rates haven’t changed — still available.