[MI] Honor Credit Union 3% APY Benefits Checking Account

Rate increased to 3% on 05/15/18. Previously it was 2.5% from January 1st, 2017 and before that it was 5%.

Offer at a glance

• Interest Rate: 3%, dropped from 5% on January 1st, 2017 
• Minimum Balance: None, $25 initial deposit
• Maximum Balance: $5,000
• Availability: Michigan, need to be resident as well
• Direct deposit required: Direct deposit or ACH required
• Additional Requirements: 12 debit transactions
• Hard/soft pull: Hard (Transunion)
• Credit card funding: Have to pay a $15 fee, maximum is unknown but at least $2,500
• Monthly fees: None
• Insured: NCUA

The Offer

Honor Credit Union of Michigan offer their Benefits Checking account with a high-yield interest rate.

• Balances up to $5,000 earn 2.5% APY
• Balances $5,001 – $10,000 earn 2.5% APY
• Balances above $10,000 earn .01% APY

They also offer ATM reimbursements, up to $20 per month.

In order to be eligible for the 2.5% rate, you need to fulfill some requirements:

• Must enroll in e-statements
• Must make 12 debit card signature purchases per month (not PIN purchases)
• Must have an ACH transfer or direct deposit into the account each month

Geographic Eligibility

You are eligible to be a member of Honor Credit Union if you live, work, go to school, or attend worship services in the state of Michigan. If are unsure about your eligibility, give them a call at (800) 442-2800.

Apply for membership here

The Fine Print

• No free checks offered on this account
• One account per Member
• Annual Percentage Yield (APY) as of 10/1/15; rate is variable and may change after account is opened

Our Verdict

Update: Only 2.5% rate now, not nearly as good as before when it was a 5% rate on first $5,000.

Pretty good deal for Michigan folks. I especially like the fact that balances of $5,000 – $10,000 still earns a respectable 1% APY so you don’t have to feel bad if the balances go over $5k when you do the monthly ACH transfers to the account.

All the requirements should be pretty easy to meet; do some $.50 Amazon reloads or run small charges through at the self-checkout to meet the debit requirement, and automate the ACH transfer requirement.

We don’t know if they do a hard pull when opening the account, so keep that in mind.

See also An Introduction To Rewards Checking Accounts. And see “Which High-Interest Savings Account Should I Get?” for a roundup of available high-interest accounts.

Hat tip to Maximizingmoney