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
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
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.
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
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