Reward Checking Accounts (High Yield and Available to All)

GroveStreetOG said: stfs said: SuperMxyz said: I'm not going to manually make 10-12 debit card purchases a month just for a ~1% increase in interest rate.
Just curious about that rationale, the difference between 5% and 6% for 100K is $1000/yr. Even not going the extreme route of $.01/$1 transactions, buying lunch or sundries for average $5 10 times each month would add up to about $600/yr. Using a 5% rebate CC to do it would save you approx. $30 vs. earning an extra $1000? Am I missing something?

Where do you get 5% on lunch and sundries? Or are you just using it as the most extreme example? One way to minimize your loss on using the debit card rather than a rebate CC is to make your debit purchases on items that only pay the lower rebate percentage.

if i am one or two purchases short, I'll use my cable bill to make a small charge also use google checkout site such as debitcardminimum .com

Here's some additional information from my experience thus far with AAFCU.

After the on-line application for my second membership failed to finish and after I couldn't even get past the identity verfication for my third membership -- as I previously stated, only 1 MAX checking account is allowed per membership, but you can have multiple credit union memberships -- I ended up printing the completed on-line application from my first membership, and simply copying it twice. Then I signed all 3 membership applications and called AAFCU in order to notify them that I wanted MAX checking accounts on all three memberships.

I (and my spouse) signed all three applications, made a copy of our driver's licenses, attached funding checks to each application (the check totals consisted of most of my SBoT balance), and express-mailed everything to AAFCU on Monday, 12/17. Meanwhile, on 12/17, AAFCU opened membership number one with MAX checking, and posted my on-line debit card funding of the savings and MAX accounts. AAFCU said that I started earning interest that day.

AAFCU received the information on 12/18, and deposited the checks to the appropriate savings and MAX accounts. As with the initial funding from my first membership, AAFCU said the checks started earning interest the day that they posted -- in this case, 12/18. It looks like I'll earn interest on these checks from AAFCU and SBoT on 12/18 and 12/19.

On 12/19, I called AAFCU and a helpful CSR walked me through getting on-line. Their on-line banking is called I-Branch. They have a process called "Multi-Factor Authentication" that you have to go through first. I then accessed the accounts and set up e-statements. There's a funky way of entering your password information using your mouse and an on-screen simulation of a typewriter keyboard. Fortunately, once you're signed on, you can click on Change Security, and disable the keyboard. After that, you can just type in your password.

So the login process consists of logging in to I-Branch, where you initially input either your member number or a nickname that you've set up, and a 4-digit security code that displays and that you're prompted to enter. (This is probably to prevent some sort of automated program or malware from logging in.) After clicking on Log-in, the "security image" word you've previously set up shows on the screen, assuming you've "registered" your computer. Assuming that's OK, you then enter your password, and click on Submit. You then get the welcome screen, which tells you how to sign up for e-statements. Unfortunately, it keeps telling you that, even if you've already signed up for e-statements. After signing up for e-statements, just ignore it and click on a selection on the left-hand side of the screen to proceed.

On 12/20, I received a call from AAFCU, just as stfs reported, telling me that my applications had been processed and that I could proceed with on-line banking. Even though I knew this already from calling AAFCU the previous day, I thought it was great customer service.

One last thing: the person from the Association of Graduates of the US Air Force Academy contacted me again to say that he called AAFCU and verified that "the Air Force Academy Association of Graduates does not have reciprocal agreement with the Air Academy Federal Credit Union for our members. We are one of their “Select Employee Groups” which allows our employees to become members of the Credit Union." He gave me the option to proceed with the AOG application or to refund my money.

Even if true, this statement contradicts the AAFCU on-line membership applications, which (after clicking on Military) allows you to specify membership in AOG as an eligibility option to join AAFCU. I double-checked with one of the AAFCU on-line application CSRs, and she said specifying AOG was fine. She also again confirmed AAFCU doesn't verify this anyway. So I told the AOG person to proceed with my AOG membership.

So far, I'm very pleased with AAFCU, especially their customer service. My next task is to learn about their on-line bill-pay system, "Bill Payer", which, in order to use, you need to allow pop-ups from the AAFCU web site. I was given a phone number, (800) 485-0838, for Bill Payer support.

andoelonis said: I've already purchased 10 $0.01 e-books off of eBay for this month's qualification period but next month, I'll just send a friend 5 individual pennies and have him refund me those 5 individual pennies right back. Damn, my credit union and PayPal must hate me.

Can you explain how did you buy 10 e-Books?
Do you need an accomplice friend who will accept the payments?
AFAIK paypal allows only 5 debit card payments per year.

In addition, the $0.01 cash advance payment posted to my checking account just like a normal Check Card purchase. For those planning on doing this, you NEED to click Funding Sources and select Process by Visa Network. Otherwise, PayPal will process it as an ATM transaction.

For those Reward Checking accounts that require a monthly log-in to one's account, would Yodlee Moneycenter's automated log-in/balance-updating suffice?

I don't know that Yodlee yet has aggregated one of these Reward Checking providers. I believe only State Bank of Toledo has had a request for inclusion.

Can one BillPay oneself 10X to satisfy the 10+ debit card transactions per month? It would eliminate the need for our becoming "philanthropists" w/ these 10 $1.00 donations. See this thread. http://www.fatwallet.com/forums/messageview.php?catid=52&threadid=771408&start=0

Not all Reward Checking accounts require a signature on "debit" transactions. If you've read the thread, those making $1.00 donations to meet the requirement aren't doing it with a signature.

craig10x said: aptvictoria said: Not all Reward Checking accounts require a signature on "debit" transactions. If you've read the thread, those making $1.00 donations to meet the requirement aren't doing it with a signature.

That is certainly true...but a "bill pay" doesn't involve the use of the debit card..assuming he meant using the bill pay service on the account.....but paying a bill with a debit card would count, of course.....such as when you set up an auto-debit to your cable bill, phone bill, etc.....or, if you make a "manual" payment to those types of bills, even if not for the entire amount of the bill....

It has to involve the actual use of the debit card.....unless he has his own company that he can send himself a bill and use his debit card to pay it, i can't figure how he could "bill pay himself"....
To tell you the truth, I'm not entirely clear on this issue. But you, yourself, posted in the following thread titled "Using Billpay to yourself instead of ACH". http://www.fatwallet.com/t/52/771408

A debit transaction would, though, encompass a BillPay. would it not? What might be required, though, is a Reward Checking bank that OFFERED BillPay - as the transaction has to be done "in-house". Then again, this CheckFree link in the other thread is still down - maybe permanently. (The link allowed one to establish themselves as a "merchant" - and bill themselves.) Though there is an additional link for Metavante's system/set-up.

What do you think?

At the moment, it's hard to justify SBoT over UFBdirect - from a rate standpoint. But if State Bank of Toledo were to offer a Checkfree BillPay service, I don't see why it wouldn't be given equal footing with debit card usage. And were it so, it would make for an additional option for those wanting a Reward Checking account.

adityanm said: craig10x said:
You could of course, do as some do here and make, like 10 small debit card payments to your phone or cable company...assuming they will "tolerate" that kind of activity....

Paying by DC will mean loss of rebate that you may get by using CC.
Regarding small debit card payments, I did that all the time with Comcast, making a series of $1.00 payments at their web site during one on-line session, using my debit card as a credit card. Each payment counted as one of the required debit card transactions.

Regarding loss of rebates, it's a simple matter to calculate how much you'd lose in rebates based on the total debit card transaction amount, and calculate how much interest you're gaining with the higher interest reward checking account compared with a lower interest alternative account. Compare the interest gain against the rebate dollars lost, and you can tell if having the rewards checking account is worthwhile.

For example, if you can earn 1% higher APY with a reward checking account, and have a $100,000 balance, that would be a $1,000 gain in interest for a year. If you averaged $10/transaction to meet a 10 debit card transaction requirement that would be $100/month or $1200/year. If your rebates were worth 3% of the transction amount, then you'd lose $36 in rebates from using your debit card instead of your rebate credit card. So in this example, you're gaining $1000 in interest (actually slightly less because you're making the $100/month in debit card transactions) and losing $36 in rebates.

The above example shows that the interest gain from a reward checking account can be much greater than the loss of credit card rebates.

stfs said: glxpass said:
To be safe, I was told you should complete your transactions 1 day prior to the last business day of the statement period. And those transactions must be "signature-based." Using the debit card as a debit card by entering your PIN at a grocery store, for example, wouldn't count towards the 12 check card transaction requirement. That's why you should allow some time for the transactions to post. You can have multiple max checking accounts under a single credit union membership.


This is somewhat tricky with this CU. With SBoT both debit and credit transactions count as debit card usage. But apparently, with this CU, only credit transactions count. So online purchases or bill payment with companies that accept credit card as well as grocery or other transactions that allow credit card selection would do. Just make sure to select the 'credit' option and not the debit option when present the the choice. It's not that you have to sign for it because online payments also qualify, just make sure that it's a 'credit' transaction. One more thing to make sure that you know when applying for these reward checking accounts.
Also, did someone mention free starter checks? I didn't receive any checks and a box of 150 checks is $14.50.
Regarding free starter checks, I just requested them over the phone. I think it was 15 - 20 checks for each account. That should be more than enough for me.

And for "signature-based transactions", you phrased it better than I. Essentially, I was trying to say that if you don't use your PIN, you should be fine. I should also have said that given a choice between credit and debit, select credit -- whether it's an on-line transaction, or a POS transaction. Thanks for the clarification.

It'll be interesting to see what happens, if anything, to the rates for this account when AAFCU's rate sheets come out on the first of the month.

andoelonis said: Beginning January 1, 2008, Provident will drop the APY on their Super Reward Checking product to 5.51%. I have updated the Quick Summary to reflect this new rate.You beat me to it! OP, let's change the title to "at least 5% APY" so we can continue to include SBoT as well as Provident CU.

Added First Arkansas Bank & Trust - FirstNet Checking to Quick Summary.

adityanm said: glxpass said: First Arkansas Bank & Trust
You did not mention that APY is 6.06%
True. The 6.06% is in the Quick Summary, but wasn't "around" here. Now it's here -- thrice.

Added link to Reward Checking Accounts - Issues and Discussion Thread to Quick Summary in order to encourage general questions, discussions, and debate about Reward Checking accounts on that thread.

Regarding about the funding on AAFCU, is there limit?
I know that they take cc but not sure how much.

About the requirement:
12 Check Card Transactions - can we just pay bill online 12 times/month
Receive Electronic Statements - register online
One direct deposit or ACH Auto Debit - pay bill for comcast $1/month?

6.01%

glxpass said: g10ny said: 6.01%
For this First Banking Center Rewards Checking Account, according to this Bank Deals post, a branch visit is required for first time customers.

I haven't signed up (yet) but I doubt that's true. It's mentioned nowhere on their website and this is a nationwide offer (I saw it advertised at creditkarma.com too).

glxpass said: sieglerc said: glxpass said: g10ny said: 6.01%
For this First Banking Center Rewards Checking Account, according to this Bank Deals post, a branch visit is required for first time customers.

I haven't signed up (yet) but I doubt that's true. It's mentioned nowhere on their website and this is a nationwide offer (I saw it advertised at creditkarma.com too).
Please report on how it works out. The on-line application says:

If you are a current First Banking Center customer, we are pleased to provide you with the convenience of applying online for another FBC account.

Also, do this Google search and click on the forbidden-to-link-here SD result.

From the SD thread,

I went and "applied" and received this response:

Thank you for your recent inquiry into First Banking Center’s free Rewards Checking Account.

We are very excited to offer such a great account. In order to comply with federal regulations, at this time we are requiring our customers to come into one of our locations so we may examine customer identification documents. Please refer to the locations listed on our website at www.firstbankingcenter.com and let us know which location is the most convenient for you.

Because of the popularity of this account, First Banking Center will soon be implementing new procedures that will allow us meet all regulatory requirements without having the customer come in and open the account in person. Please check back with us. Thank you.

First Banking Center

Which is pretty lame. I think I'll stay away.

stingee said: Any news regarding a new rate sheet for AAFCU? Seems like the best deal out there at this point...

also, did they do a hard pull on those of you who opened an account? Opinions on their billpay service?
I called this morning. I was told no change and that they'd give a 30-day notice of any change. No hard pull. I haven't tried their bill pay yet.