Update 01/03/18: This account no longer earns 5% APY so you’ll want to transfer your funds out. Reader Jody has an easy way to do so:
- Click the “Bill Pay” tab, and then click bottom right “what else can I do?”
- Then you’ll see the option to transfer money between your own bank accounts.
There is no point keeping funds in this account as plenty of banks offer accounts earning well above 1% APY with no requirements and up to 5% with requirements. More alternatives can be viewed below.
Original post: Northpointe offers the UltimeAccount, this earns 5% APY on balances up to $10,000 when the following requirements are met:
- Must enroll in e-statements.
- Must make 15 debit card purchases. (The 15 transactions must post and settle during the statement period to qualify.) More details on this below.
- Must set up an automatic withdrawal or direct deposit of $100 each month
This account has undergone a number of changes over time (full history here) and on 11/21/17 it became no longer available for new sign ups. Existing account holders are starting to receive letters regarding a major negative change to this account. Important sections of the letter are as follows:
- Effective March 1st you’ll earn 1% APY when requirements are met (down from 5% APY)
- Effective March 1st the requirements will be as follows:
- Make $1,000 or more in debit card purchases
- Be enrolled in eStatements
- They will make closing your account easy by visiting northpointe.com/goodbye. This currently doesn’t work and won’t work until February 5th, 2018
Alternatives
Given that basic savings accounts rates are currently offering 1.7% APY, I don’t think Northpointe seriously thinks people will continue to keep using this account. I suspect a lot of readers will be looking for alternative places to stash their funds. The obvious choice for most people will be getting an Insight card (or two) that offers 5% APY on balances up to $5,000. Other options include Consumers Credit Union 4.59% APY account on balances up to $20,000 and Mango Prepaid’s 6% APY account. A full list of high interest accounts can be found here (this page is kept up to date, so might be worth bookmarking and sharing with friends).
Hat tip to reader Steve
