Thanks for the updated info everyone, much appreciated.

Can you link a no-fee checking account to this account, with free OD protection, like you can at UFB direect, USAA, and others? That would be a nice way to access these funds.

davelanton said:DaveHanson, see the first post. I didn't ask about OD protection, but you can transfer funds in/out with the free "value checking" account (free if you get electronic statements or have DD of $100/month) and then ACH in/out that way.

A savings account is required and comes with ATM access so there's no reason to get a checking account also.

davelanton said:There is if you want to link the account to INGDirect or Emigrant, or any other bank that requires a check to establish an ACH link. Plus, the ATM card probably has a limit of $500 a day. I see the need for transfers a lot higher than that.

I thought ACH works fine on savings accounts.

ne1 have updates?

Paperwork arrived. I have great news for Dave Hanson:

Any savings or Money Market account (including the 4% Money Tree acct) can act as overdraft protection for checking. There is a $3 fee for each overdraft transfer, but if you have $100K in combined acct balances, the fee is waived.

There's a pamphlet included with the welcome package called "relationship rewards" which waives many fees if you have large balances. Perks include fee-free ATM withdrawals at non-CU ATMs, fee rebates from non-CU ATMs, mortgage fee discount, free checks, overdraft and HELOC low-balance fee waivers, and a higher rate on CDs.

Caveat: there is NO MENTION of the 4% money market account in any of the paperwork. I called the CU and they assure me the account exists, and that it's a "promotional account" and is so new that they have no paperwork on it. They asked me to include a note with my opening deposit indicating the following allocations:

$5 savings (min required)
$25 value checking (min required to open account, but no minimum to maintain acct)
$the rest in 4% Money-tree money market

I also need to indicate that I want the money-tree money market to be the overdraft protection account.

Spoke with customer service. This is a special rate, rates are adjusted every Friday. There is no guarantee of how long this rate will be in effect. Could be as short as until next Friday. Thanks

Interesting discussion of this deal: http://www.bestcashcow.com/fcuaccounts.html
Has anyone actually set one of these up, seems like a real hassle, but might be worth it if the rate stays where it is. Also, they comment that it is not trivial to get your money out. Does anyone know a better way?

My account is open as of August 1st. I mailed my completed application and opening deposit last week. And by the way, they are accessible through yodlee.com as well.

Their web interface is remarkably similar to Presidential, they must use the same software vendor for online banking.

And I am nowhere near their offices, nor am I near Presidential, Emigrant, ING Direct, or any other ONLINE BANK. Does it worry me? Nope. With the linked checking account, I can ACH funds in/out if I need to.

doglar said:FYI - ING Direct has no branches, it is a purely internet bank, that is why it could offer such high rates over the other banks that had branches. How the other banks are getting smart, and jumping into the internet banking aka low maintenance banking, giving ING a run for its money. These banks, to compete with the "internet rates" must separate their branch business from their internet business (hence the "online" rates versus the non-online rate, and the fees for using branches for supposedly "online" accounts). So the best interest interest rate accounts, will either have no branch or a fee for using the brach. The FDIC member bank listing shows the number of branches each FD/iC bank has...While it's true that ING may not have any branches, the do have (in the US) four locations they call cafes where you are able to conduct business and get information. This coupon will get you a free cup of coffee at any of their cafes and also (on the bottom) lists the location of these cafes.

davelanton said:Paperwork arrived. I have great news for Dave Hanson:

Any savings or Money Market account (including the 4% Money Tree acct) can act as overdraft protection for checking. There is a $3 fee for each overdraft transfer, but if you have $100K in combined acct balances, the fee is waived.Many thanks for the update, davelanton .

This is a very nice option for people with large balances who need liquidity. Not nearly as attractice for smaller balances, and it isn't clear how attractive it will remain once the promo period ends.

According to their chart , relationship rewards levels are determined by average daily balance on deposit accounts + outstanding loan amounts as of last calandar day of the month.