Update June 1st: New requirements added. These should now be reflected in the post
Offer at a glance
- Interest Rate: Up to 4.99%
- Minimum Balance: None
- Maximum Balance: $20,000
- Availability: Must live, attend school, worship or work in Minneapolis, MN or St. Paul, MN (or being a relative or family member of somebody who is already a St Paul’s member)
- Direct deposit required: Yes, two per month of at least $500 each
- Additional requirements: See below
- Hard/soft pull: Hard pull
- Credit card funding: Up to $1,000 for both checking & savings. Mastercard or Visa
- Monthly fees: None
- Insured: NCUA
- Expiration date: None listed
- Receive a high interest rate on balances up to $20,000 with St Paul’s Federal Credit Union when you sign up for eStatements, receive two direct deposits of at least $500 per month and login to eBanking monthly. The rate you receive and the maximum balance will be dependent on how many debit card transactions you make monthly (average debit card transaction must be $5+):
- Earn 2.99% APR on balances up to $10,000 when you use your debit card to make at least 20 purchases per month.
- Earn 3.99% APR on balances up to $15,000 when you use your debit card to make at least 40 purchases per month.
- Earn 4.99% APR on balances up to $20,000 when you use your debit card to make at least 60 purchases per month.
The Fine Print
- Bonus Rate of up to 4.99% APR will be paid on balances up to $20,000 as long as cycle requirements are met. Balances above the qualified tiers will be paid the default current rate of your respective checking account (Capital Checking account pays no dividends).
- If requirements are not met during statement cycle, account will function as your default checking account and earn the stated default APY.
- Requirements for earning the bonus dividend rate include: 20 debit card purchase transactions (excluding ATM transactions) per statement cycle to meet base bonus dividend tier, 40 debit card transactions (excluding ATM transactions) per statement cycle for the mid-level bonus tier, 60 debit card transactions (excluding ATM transactions) per statement cycle to meet the top bonus dividend tier, enrollment into eStatements through eBanking and monthly login to eBanking, and recurring direct deposit per statement cycle.
- Rate quoted 02/2016. St. Paul Federal reserves the right to change rates and terms without notice.
- All bank account bonuses are treated as income/interest and as such you have to pay taxes on them
As far as I can see there are no monthly fees to worry about or early account termination fees (although not sure why you would want to close this account).
This is a pretty insane deal, the requirements are quite high but the fact you can have a balance of up to $20,000 is fantastic especially paired with the 4.99% rate. Here are some creative ideas on how to the the debit card transaction requirement, although I’d be somewhat hesistant to use that too much as they are likely to want to see normal usage on this account.
Unfortunately it’s a hard pull to open, but at least you can fund a small amount with a credit card. Normally I’d say it isn’t worth it due to the hard pull but with the maximum balance of $20,000 I say it is worth it. We’ve added this account to our list of the best high interest accounts.
Hat tip to @telewatcr on Twitter via /r/churning
In order to get 5% per year your going to need to make 720 five dollar purchases ($3600 total). Thats quite extreme. Not sure how someone can economicaly work this out, doing this with venmo will take for ever.
It takes me about 7 minutes every month. Maybe that’s a lot to some people.
60 purchases plus 2 $500 DD per month does seem a bit annoying. Maybe if the max was higher then 20k it would be more worthwhile
I am out of state but tried applying via a cousin who has a bank there, was declined, they said cousin is not consdiered immedaitate family.
for those interested – still having no problems getting the 5% rate. mostly do small transactions, with a few bigger ones thrown in to get to a $5 average.
New Terms starting June 1.
Your account must receive at least two direct deposits each month*
You must use your debit card for purchase transactions at least 20 times per month^
You must login to either mBanking or eBanking monthly
You must be enrolled for eStatements
The average debit card transaction amount for the purchases made during the month must be at least $5.00.
Returns are deducted automatically from the eligible account transaction totals, and all transactions must post during the monthly period, prior to end of month processing to be eligible.
* Direct deposit amounts must be at least $500 each from a qualified payroll or pension
************** ^ The credit union retains the right to cancel participation of any member who uses excessive and/or recurring payments to the same merchant in order to qualify for the bonus dividends. Restrictions apply for reinstatement to the program. *******************
Key part in asterisks. We’ll see how it’s enforced 🙁
I was just about to sign up for this account… thanks so much for sharing this.
@Tj I warned you late last year. The party is over.
UPDATE for june: direct deposit of pension and payroll only and 2 of them..also minimum ammounts of transactions of debit have to be $5 . Booo. This stinks!!! Ughh…all these banks are so annoying
Anyone looking for a referral, you’ll get $125 on top of the 4.99% interest. Email me at email@example.com. there are methods to make the 60 debit transactions and direct deposit a breeze.
What methods have worked for you? or I guess maybe the better question is what hasn’t worked… Amazon fine?
Doesn’t really matter, they will be ending this soon.
I just read the entire discussion & decided I’d apply
still getting the interest, fyi
I would not go with St Paul fcu. 60 debit transactions is too much for me as I already have 1 heritage bank and 2 Orion accounts where I need to complete 26 transactions. I am opening one for Liberty first CU.
Also I opened the account but online it says capital checking does that mean I got the wrong account or what?
For me an ACH transfer has been counting as direct deposit.
Capital checking is the right account.
what counts as direct deposit??
what counts as direct deposit anyone know?/