Update 2/26/21: Starting March 1st, 2021 there is no monthly a requirement to receive monthly ACH transfer or deposit. You’ll also 1.34% APY on balances $1,000.01-$5,000.00.
Offer at a glance
- Interest Rate: 5% APY
- Minimum Balance: None, $25 initial deposit
- Maximum Balance: $1,000
- Availability: Nationwide, as far as we know.
- Direct deposit required: Direct deposit or ACH required, no minimum specified but according to CSR it’s at least $5
- Additional Requirements: None
- Hard/soft pull: Soft
- Credit card funding:
Up to $3,000None
- Monthly fees: None
- Insured: NCUA
- Receive an APY of 4.99% on Blue Federal Credit Unions Accelerated Savings account when you do the following:
- Have a minimum daily balance of $25
- Receive a monthly ACH transfer or deposit
The Fine Print
- $5 minimum deposit required ($25 for interest)
- Rates subject to change
- Required to pay taxes on interest as per usual
- This account earns points towards their rewards for life program (this can give you an APY of up to 4% on balances up to $15,000 on their Extreme Checking Account)
There are no monthly fees on this account. You are required to pay $10, $5 goes to the Blue Foundation as a donation and the other $5 is used to set up your membership. There is no early account termination fee according to their fee schedule.
The maximum balance of $1,000 is kind of annoying, but pretty easy to get the 4.99% rate. I’d probably just set up an automatic $5 deposit every month and then withdraw that and your interest earned (~$4) monthly as well. Credit card funding is a nice option as well. Not really sure if it’s worth using a ChexSystems inquiry on this due to the relatively low maximum balance and the fact you could sign up for another account with a bonus instead. We’ve added this to our list of good savings accounts as well.
I’ve also asked for more information on their extreme checking account, although it seems like it will be difficult to qualify for the top 4% rate.
Big thanks to reader Mr. PTM for letting us know about this one