Posted by Chuck on March 22, 2019
High-Yield APY Accounts

Published on March 22nd, 2019 | by Chuck

106

Grow Financial 2.75% APY Money Market Account, Guaranteed for 1 Year

Update 3/22/19: Reader John Doe reports that this offer ends tomorrow, March 23.

Offer at a glance

  • Interest Rate: 2.75% APY
  • Minimum Balance: $1,000
  • Maximum Balance: None stated
  • Availability: Nationwide (see below)
  • Hard/Soft Pull: Soft pull
  • Chex Inquiry: Yes
  • Credit Card Funding: Yes, $500 Limit
  • Monthly Fees: None
  • Insured: NCUA

The Offer

Direct Link to offer

  • Grow Financial Credit Union is offering a money market account with 2.75% APY interest, guaranteed for 12 monthly statement cycles.

The credit union has branches in Florida and South Carolina, but it sounds from this comment like anyone can call in and open an account over the phone.

The Fine Print

  • The promotional APY quoted is effective for the twelve monthly statement cycles.
  • 0.00% APY on balances $0.00 to $999.99.
  • The promotional APY applies only to new funds deposited to the credit union.
  • Offer may expire at any time without notice.
  • After the promotional APY expires, the APY you receive will revert to the Money Market variable tiered rate as follows: 0.00% APY on balances less than $1,000, 0.30% APY on balances $1,000 to $9,999.99, 0.35% APY on balances $10,000 to $24,999.99, 0.55% APY on balances $25,000 to $49,999.99, 0.85% APY on balances $50,000 to $99,999.99 and 1.00% APY on balances over $100,000.
  • The APYs are accurate as of 02/01/2019 and may change without notice after the account is opened.
  • This is a tiered account. Variable Rate Account.
  • Fees could reduce earnings on the account.
  • There is a limit of six withdrawals per month in accordance with Federal Reserve Regulation D.

Membership Eligibility

Being a member of Costco or Sam’s Club makes you eligible, along with various other groups. Full details here (click through to see full list). See this comment for additional membership option with $5 donation.

When becoming a member, you’ll open a savings account to begin your membership. Even a $1 deposit is enough for that.

The credit union has branches in Florida and South Carolina, but I believe anyone can become a member, and it sounds from this comment like anyone can open up this money market account over the phone.

Our Verdict

2.75% is far significantly higher than all other available options on a no-strings-attached savings accounts. Rates haven’t been rising recently like they used, and locking in a year at 2.75% is quite good. Just keep in mind that the rate will presumably be reduced to their standard, non-promotional rates (between .3% and 1%) after the year is up.

Depending how much cash you have on hand to deposit and how much of hassle you find opening accounts can help you decide if it’s worth it. As an example, someone with $100,000 deposit will earn an extra $250 on the account over the course of a year when compared to a 2.50% APY account, and will earn an extra $750 on the account over the course of a year when compared to a 2% APY account.

Also nice that there’s $500 in credit card funding. Hard pull status is currently unknown, but sounds like there isn’t a hard pull since they mention clearly the Chex inquiry which is something of an indication that it’s the only thing they check.

Thanks to reader Matt K for sharing this bonus and arizonapv for additional information.



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Schmekel
Schmekel

Doc – Your writeup above –

“Membership Eligibility”/ “Full list here” leads to this:

” Invalid Session
“Your session has become invalid. Please close this browser and log in again from your lender’s site.”

doc
doc

Second link on a Google search for “Grow Financial Credit Union” turned up negative reviews.

https://www.creditunionsonline.com/credit-union-5593.html

If you live near a branch and can go and get your money out anytime, than it’s not as risky as living across the country and potentially dealing with who knows what unforeseen events.

But, I guess you could potentially earn more than a plane ride over in interest, should you need to fly there to deal in person. Nevertheless, I just wouldn’t be willing to stake my trust in something that will only last a year. It has to be at least 1 percent more than the rest for me to deal with unknowns.

If this was 2.75% Savings, with no expiration, we might be talking. But, that alone still wouldn’t quite alleviate the aforementioned other concerns.

Sam
Sam

Well it’s no different than credit card churning when you close your card.

Schmekel
Schmekel

Have you seen any posts about people being forced to show up at a branch in person?
I saw one review you linked to stating “Do not expect to be able to access your account.” but it seems to be tied to problems she’s having with the car loan she has with them.

There are more bad reviews on depositaccounts.com, but they are mostly older and like half the ones you linked to mostly have to do with people using them for loans/mortgages.
The other 2 reviews you linked to are a person who lost their password, and a person who couldn’t get satisfactory answers from the cs but finally asked for a supervisor and that person was well trained and could answer her questions.

What would put me off from using them would be posts about bank accounts being locked and/or people having to show themselves at a branch for confirmation, but I haven’t seen anything like that other than the car loan customer but the way I read that one there’s an issue with them receiving her loan payments and it’s reached over to her bank account.

I’m on the fence about this one – I’d hate to park 6 figures there and then have a hassle, as I will be far away from any branch.

And the fact that they are clear about it being a 1 year only offer. However, they are honest about that which is a good sign – they could have not revealed that and gotten a lot more people to sign up.

I wish this was a bank where DoC posters had some history with so we could get a better feel for whether there may be issues or not, and this may put me off it.

Schmekel
Schmekel
james
james

Every bank has negatie reviews

Joe
Joe

And those are a little odd. Why should I even trust that those people are real customers?

KT
KT

The APY isn’t that amazing honestly – I’m going to open the savings account for the sole reason that they allow up to $500 in credit card funding – there is no early account termination fee so sign up, fund the account, then get out.

When they ask for your eligibility questions just put that you work at Costco and you shouldn’t have any problems.

The website is trash and looks like it’s out of the 90’s but again, get your funding and just get out right after.

Joe
Joe

Fund the initial deposit by a credit card over the phone usually will be purchase or cash advance?

Paul

Good question. Does anyone have any data points on this?

arizonapv
arizonapv

I know you can fund the initial deposit online by using a credit card. Usually you cannot fund an account over the phone by using a credit card. ?

KT
KT

Using a CSP with a CA limit of $100 I was able to fund $500 over the web – it appears to be coding as a purchase and not a CA.

syd
syd

was it a purchase aftr officially posted?

arizonapv
arizonapv

They are rated “A” https://www.depositaccounts.com/banks/grow-financial-fcu.html You can open an account online and fund it with a credit card up to $500. You get your account number instantly. When I called, I got a representative fairly quickly and he was very helpful. The CS reps seemed locally sourced, like you are talking to someone at the bank, very friendly. I didn’t have any problems.

HarryTheFirstHarry
HarryTheFirstHarry

Google shows up comments about a 3.2 APY 1 year CD as well as a $150 checking bonus at Grow. Not sure if these are still available….would sweeten this even better so that you can have some in the CD and some in the MM.

arizonapv
arizonapv

The 1 yr CD rate was a promo rate. The cust serv rep I spoke to said that rate was for a promo they had going last week and it has expired. He didn’t mention any $150 cking bonus, so most likely that’s expired too. Seems their cking accounts suck cause one cannot just set em and forget em. You have to do activities to keep them fee-free. My CS rep said I had to keep at least $400 across all accounts to keep the sav fee free. Let me know if you see anything different.

William Charles

got a link for the $150 bonus?

arizonapv
arizonapv

William Charles will, I googled the $150 cking promo for Grow Financial. You see the offer https://www.google.com/search?client=firefox-b-1-d&q=Grow+Financial+Federal+CU+%24150+checking+bonus
however, the sites say the offer is targeted and there is no direct link to the offer. This is good to know and perhaps since I am now a member, I will be targeted.

William Charles

Ah thanks

Karen
Karen

I have just a savings account there but I have no trouble with getting money out and I never physically show up. Just set up an ach from another bank when you open the account and then when you need the money, ach it out. I have my tenant deposit his rent check there every month and a few days later I ach it out. No problems. Just don’t deposit money orders from yourself there. They gave me a hassle the first time I did it and so I don’t use them for mos anymore.

newbie
newbie

was it hard pull or soft pull??

Karen
Karen

Too long ago to remember.

Philipp
Philipp

But no FDIC insurance…that’s not good

arizonapv
arizonapv

The shares in your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF), which is backed by the full faith and credit of the United States Government. Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA From: https://www.culookup.com/Financial-Education/NCUA-Insured

Ann
Ann

lol, have you never heard of credit unions before?

Gadget

Philipp Ann arizonapv Some people assume credit unions have very limited membership, so they never look into “banking” with them. But yeah, CU’s will never have FDIC. They get insured thru NCUA.

While I am on my soapbox, the NCUA and FDIC websites are a great way to find banks and CU’s in your area that you might not know about or thought about. You can search by XX miles from your Zip Code. The more people searching for bank and CU’s in your individual areas, the more offers/promos will be found.

I created a list of shortcuts and put them on my desktop, then go back over them periodically to see if they have posted any new promos on their websites. The only thing that is lacking there is if it’s targeted, or they only posted in branch.

Sam
Sam

1YR at 2.75% is pretty good especially now that rates likely won’t rise till Q4

Kay
Kay

Has anyone tried opening an account?

arizonapv
arizonapv

Kay Kay, I opened an account and I believe some others have too.

Kay
Kay

I just did and had a superb CSR helped me because my application went blank after I hit next. The only downside was the hard inquiry from Equifax. Other than that, I am happy to lock in the rate for a year on my liquid fund. Thanks, Chuck for the post!

Emporio
Emporio

Chuck :It sounds like there may be a hard pull to become a member so it might be worth noting this datapoint in the post.

Gadget

Chuck Kay Emporio No HP in my experience. I will update if it happens later on, but as of right now, no alarms. Opened CU acct/savings late Thursday… MM opened Friday.

Being an East Coast CU, pretty much guaranteed they soft pull Equifax. They use LoansPQ for application processing, which I have seen at Chartway and so many other CU’s use. It specifically calls out Chex, as Chuck mentions.

datapoint
datapoint

Any limits on the amount of monthly ACH ? Can 50k/75k/100k be pulled from account at any time as long as less than 6 monthly transfers ?

arizonapv
arizonapv

The CS rep at Grow Financial said if I wanted to avoid the $10K limits, to use an external bank to do pushes and pulls.

al
al

That is very inconvenient. 10K limit alone will make paying property tax an issue for some.

Gadget

DP: Opened online – No hard pull, not Chex sensitive. Applied late night 3/9/19 out of state (VA) using “Military” as a qualifier. (So, it appears retired or active duty military have no residency requirements – but not a big surprise if nationwide Sam’s and Costco membership can get you in.) Instant approval, with account number and routing number for my savings account being displayed at the end. I did not open a checking, as I see this CU has offered checking bonuses in the past, and maybe I will luck out an get targeted – I’m probably dreaming. DP: Funded $500 into savings with ELAN Fidelity Visa – pending as purchase on Fidelity instantly. Immediate online access to account, via a temp password in your disclosure PDF’s, and they e-mail the temp p/w too. I tried to see if there was any way to open the promo money market account online, but it looked like it wouldn’t have been part of the promo. Another $500 CC funding would be nice, but not to where I want to miss out on getting the promo. (If someone is able to retroactively get them to change a normal MM into the promo, that would be a nice DP – I wasn’t that adventurous.) Called the next day about the promo. I was wondering if I was going to get the run-around since the promo terms says you must go to a “store”, or something else, because my CU account is so new and not showing a balance yet. Absolutely no issue over the phone. CSR took a minute off the phone to sign me up, and immediately I was able to log off my online banking and back on the see the promo account. VERY IMPORTANT INFO: The CSR said I have 5 business days to fund the money market account, or it will revert back to normal money market rates. I was not expecting that, and asked if I could fund over the phone, but she said no. I would need to use online banking or via the mobile app if I am not near a branch. So, I hang up and get busy. 1st hiccup – Terms say “new money”. But, there is no way to ACH into the Money Market directly, creating a potential Catch 22. They DO NOT give you a separate account number for each account, and… Read more »

AARON HOWARD
AARON HOWARD

So I can deposit $75000 and get 2.75% guaranteed for 1 year? Any issues withdrawing it during the year?

arizonapv
arizonapv

The Grow Financial 2.75% account is just like any other money market. You can make 6 withdrawals a month. Yes, deposit $75K and get 2.75% guaranteed for 1 year. Pull or push from an external account otherwise there is a $10,000 limit per day if you do the push/pulls within the grow financial interface.

Jenny
Jenny

So in terms of logistics, we need to open a savings account with them online first? then we need to call them to open this promotional Money Market account?

arizonapv
arizonapv

Yes, that’s how I did it.

Rocky
Rocky

So where do i fund 500$ from CC in the savings online or on the phone? if i do use CC now , will i be able to checkout checkin in funds later by ACH? Sorry this is my first time handling a CU.

arizonapv
arizonapv

Rocky Rocky, the first thing you do is you open the savings account. That’s the first step. I opened the account online and I funded the savings account with $500 using my credit card for the funding. Then, after the account was open, I called on the phone and inquired about the money market. The representative confirmed that he had to open the account for me (can’t open the mmk online). He opened the account for me while I was on the phone. After I hung up, I worked on setting up trial deposits so that I could move money to Grow Financial. I set some up within Grow Finan, and also at my external banks. I found it an easy process to open the account and fairly straight forward.

Ritholtz
Ritholtz

Rep told us to fund at least $500 into MM account within 5 business days. Otherwise, they are going to close the a/c. How long does it take to setup external a/c and pull the money.

Gadget

Deposit a check written to yourself into their mobile app. $25K limit.

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