Posted by William Charles on October 2, 2018
Savings Accounts

Published on October 2nd, 2018 | by William Charles

79

Consumers Credit Union Rewards Checking Account Changes (Maximum Balance Decreased, APY Increased)

Just a reminder that these new rules are now in effect.

Consumers Credit Union has sent out a letter to rewards checking account holders informing them of some negative changes to the account that will go into effect on October 1st. The maximum balance across all tiers is being reduced to $10,000 (previously second and third tiers were $15,000 and $20,000 respectively).There is also now a minimum spend requirement of $100 total for the 12 debit card transactions and $500 for the direct deposit/ACH credit. Bill pays have been removed as an option They are also increasing the APY on the two higher tiers. Full changes are below:

  • 3.09% APY on balances up to $10,000 and ATM refunds.
    • Complete 12 debit/check card point-of-sale purchases with or without out a PIN totaling at least $100 or more (previously there was no spend requirement, just 12 transactions. But they required pinless transactions)
    • Complete one of the following every calendar month:
      • One direct deposit OR
      • One ACH credit OR (previously debit work)
      • Pay one bill using CCU online bill pay (removed as an option)
    • Access online banking at least once (no longer required)
    • Receive eDocuments (enroll and accept the disclosure)
  • 4.09% APY on balances up to $10,000 and ATM refunds (APY increased to 4.09% from 3.59%, maximum balance decreased to $10,000 from $15,000)
    • Complete all of the 3.09% requirements and
    • Spend a minimum of $500 on CCU Visa credit card purchases
  • 5.09% APY on balances up to $10,000 and ATM refunds (APY increased to 5.09% from 4.59%, maximum balance decreased to $10,000 from $20,000)
    • Complete all of the 3.09% requirements and
    • Spend a minimum of $1,000 on CCU Visa credit card purchases

One of the main reasons this account was previously attractive was the fact that the maximum balance was so high. Now that it has been reduced to $10,000 I think some people will find it hard to justify the effort involved. They made negative changes decreasing the APY back in 2016 as well.  As always a full list of all the best high yield savings accounts can be found here.

Hat tip to reader NP and @toonhound



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Jags
Jags

Noooooooooo

Cj
Cj

They suck. Idk why they did this so the rates are so high everywhere else

Jags
Jags

It’s fine I’m actually a little relieved. 1 less thing to manage.

CJ
CJ

same here. less opportunity cost for me now.

TJ
TJ

Can I deposit $500 and withdraw in the same month? or it has to be net deposit like Mango?

anthonyjh21
anthonyjh21

I just closed our Mango accounts. Between having to deal with automating transfers, new cards with new routing numbers, $5k maximum and the fact that the net APY was not much higher than 3% after fees and opportunity cost it just wasn’t worth the effort.

Decided to stick with some of the credit unions like LMCU or Evansville TFCU with the 3% and $15-$20k maximum. Less work, no money transfers and a higher cap. Also helps to simplify our account situation since I manage it all and the wife is lost with it all. A side tangent I know, just wanted to throw that out there though.

sloebrake
sloebrake

I thought the math on Mango when draining by MO was ~4.9%?

Edit: NVM, noticed you mentioned opportunity cost. That would bring it down.

bob
bob

well, i spend $1000 on thier CC every month, so i’ll just be using my $500 deposit to pay that off. no biggie.

Jamie
Jamie

I’m out. The maximum interest possible would be $509/year, which would be subject to my marginal tax rate. To do so, I would be giving up $260 in opportunity costs by not using a 2% cash back card (NOT subject to income tax) for the $1000 plus $100 per month as well as tying up the $10,000. Not worth the hassle.

Superchurn
Superchurn

Thanks for the math on this. I think i’m out too. I can make more money using the funds to churn bank bonuses anyway

bob
bob

so, i have the CCU-IL Visa Signature Rewards card, which gives 1% cashback – making the $1000 monthly Simon purchase (barely) profitable, as the Simon fees are <1%. That's $120 per year just in the cashback.

the 2% card would gross $2400 on the $1000 monthly charge, yes?

What other account would you use to earn interest that has less hassle? I have NBTC's 2.2% account (no limits, and no hoops to jump thru, either) ,but that's a far cry from 5.09%.

Jamie
Jamie

2% of $12,000 ($1000*12 months) is $240, not $2400.

Chris
Chris

Actually for those who have the consumers credit card (black one 3 2 1 rewards) you would be pleased to know that purchases at CVS and walgreens earn 3% tested it myself and using it so i am sure.

Superchurn
Superchurn

oh really? that is interesting indeed.

Krista
Krista

I believe opportunity cost is $160 as you forgot to count the 1% you would earn using their card.

I’ve never ended up using their account for the interest as it’s never been convenient for me to sacrifice a hard pull and added credit line for this.

Davy
Davy

Enough with all thiese negative changes, Will! We need you to give us some positive changes, pronto!! 🙂
How about a new luxury card that requires you be over 18/12?

Superchurn
Superchurn

Go on…

Tom
Tom

Does anyone know what the easiest way to close out the CCU checking account and credit card accounts is?

Ferris
Ferris

Did you check the database here? I would assume withdrawing your money and calling them to close it out and mail your $5…it’s not rocket science or anything.

Tom
Tom

Yes Captain, it’s not in the database. Thank you for your extremely helpful comment, you’ve contributed a lot to this discussion. I figured maybe, since there will clearly be dozens (if not hundreds) of people rushing to close their accounts, maybe we could get some data points as to whether the accounts can be closed online, or if it requires a phone call, snail mail, etc. Do you respond to every legitimate question on this blog with such an unhelpful answer? Did you even bother to check the database yourself before making your snide remarks? Thank you for your valuable contribution, come again soon.

Elmer
Elmer

Yikes. Taking out your CCU frustration on others?

Tom
Tom

Only people that make sarcastic, antagonistic comments towards others for no reason whatsoever, especially when their comments are blatantly incorrect. There is no need for that here. A simple response (or no response at all) would have sufficed, without the snide remarks.

Ferris
Ferris

I think you are taking this way too personally. A lot of people don’t know there is a database, so I helpfully pointed this out. I then stated what I do for all my other bank accounts I close. Sure, I didn’t need to add the rocket science comment, but for goodness sake, it’s pretty simple. Because of the $5 Share Account, there’s literally only 2 ways to close a CU Account: in branch or phone. My answer was certainly helpful to some. I’m sorry you took it so personally.

Tom
Tom

Apology accepted.

Jason
Jason

message them via web login or app

PS: I spoke with their CS a few months ago they sounded like a dick. I don’t like them at all.

Dan
Dan

Makes it an easy decision to close. I can get 3% from abond fund. No hoops.

henry
henry

which one

Ferris
Ferris

Treasury yields are around 3% now across the board. There’s hundreds of them, you can go 2 routes: ETFs or direct investment in bonds via US Gov’t.

Mike
Mike

“Bill pays have been removed as an option”. They are completely removing bill pay or does this mean as an option for ACH?

bob
bob

used to be Billpay counted as an ACH-debit (or it counted as a way to fulfill the requirements for the high-APY). That’s been removed.

YOu can still use the billpay portal (i assume). Otherwise, they’d fail as a bank.

Brohemian
Brohemian

Oh no!! Sad day indeed. I’m still sticking with them. I’ve been happy with Heritage NA as well. Now, where the remaining $10k?

joE
joE

Heritage Bank NA, 3.33% for up to 25k w no minimum amount on your 10 debit transactions. nuff said!

COBOLCODERUSEALLCAPS

Are they friendly with $1 Amazon reloads to meet the debit card transactions, as in, no manual inspection or unnecessary scrutiny?

bob
bob

just set up 2 different Venmo accounts and send yourself money.

CCU
CCU

I’ve had the Heritage account for a few months, and no issue meeting the requirement with a series of Amazon reloads between 50 and 59 cents (no need for a whole $1)

Frito Pendejo
Frito Pendejo

Goodbye CCUIL, my first 3% account.

Scamper
Scamper

I’m out.

DirtyLilRat
DirtyLilRat

What a bunch of clowns they are. OUT.

COBOLCODERUSEALLCAPS

How friendly has this bank been towards Amazon reloads historically before the $100 debit card change? Seems like you can just pay one electricity bill and use $1 for the rest.

Jason
Jason

I don’t know what’s friendly, but keep in mind not to put too many transactions in one day. Better just play it safe but one transaction per day to meet the debit card purchase requirement.

Jags
Jags

I’ve been doing 12x $0.50 Amazon reload in about 5 minutes once a month for over 2 years. No issues.

CCU
CCU

Me too (well doing 24 for two accounts). Of course, this may have contributed to the change!

Eric
Eric

I’ve been using square cash with 1 dollar transactions. They come in as “point of sale withdrawals” and so far they don’t seem to count toward my monthly debit minimum on the website checklist. I haven’t met the $100 limit yet but even the # of transactions isn’t registering. Do you know if this works or am I doing something wrong?

Rob
Rob

There’s a delay sometimes in the count updating, but I’ve been using square cash to meet the transaction count for a while and works fine.

Also if you have an iPhone, adding money to your Apple pay cash card counts as well, and then unloading money from your Apple pay cash card counts as a DD

Jimmy
Jimmy

Does anyone know the date this takes effect? Will I still get the good interest for August under the old terms?

Ferris
Ferris

The letter I got says October 1st. So your September 30th interest should be up to the $20K, but not October 30th.

Rye
Rye

When did you receive letter?

Ferris
Ferris

Yesterday (Wednesday).

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