Posted by William Charles on September 12, 2019
Savings Accounts

Published on September 12th, 2019 | by William Charles

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Orion Federal Credit Union To Limit Customers To One 4% APY Account

Orion Federal Credit Union offers 4% APY on balances up to $30,000 on the premium checking account. Some readers have more than one account, but Orion has sent out letters to these customers informing them that on October 7th, 2019 multiple accounts will be converted to the regular checking account and holding multiple premium checking accounts will no longer be allowed. This seems like a fair change to me, the limit of $30,000 in funds is already generous and it’s likely people with multiple accounts are not even close to be profitable for Orion. If you’re looking for other high interest accounts to replace Orion, I’d recommend reading this post.

Hat tip to reader Ian



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Oliver
Oliver

Disembark gravy train now.
Can’t complain – Orion has been an excellent CU, really like their services, it’s my main hub checking account. Will move the rest of the money elsewhere. Thanks, Orion!

Lc
Lc

Surprised it took this long tbh. Oh well. A lot less Amazon reloads I have to do now, lol

abraham f
abraham f

What a lol? It means more reloads with less interest.

Lc
Lc

Obviously closing the one without 4% interest

Kong
Kong

Lc they just changed it to 3% for 15k. When unlike yall i didn’t abuse it. Fk I should have… no more of these bs cu I’ll just do chex sys signup bonuses and leave. All the banks are insolvent.

Wilson
Wilson

More like a lot more if you move the money to other accounts unless you’re going to burn it for heat this winter.

Ferris
Ferris

This bodes well for the sustainability of them having the 4% accounts in general. I posted some numbers on the last thread that showed they needed to make a move fast otherwise they would continue to make a lot less money as their profit dropped significantly since the account was announced, almost in lock step due to this account.

missjenniferd1🦉 🦁

yep, i remember, ferris called it!! very informative post you had on their numbers ferris. +1 to you for seeing it before anyone else.

JT
JT

So you were able to observe a drop in profit that coincided with the introduction of this account? Makes sense, but very impressive nonetheless.

atrader4
atrader4

I do some accounting work so it’s by nature that I can spot trends and anomalies within financial statements.

Looney Tunes
Looney Tunes

Wonder how the coming withdrawals during the first week in October (millions?) will affect their profitability and their ability to hold the 4%, especially if there is another rate cut.

atrader4
atrader4

There absolutely will be a rate cut next week and there remain high odds in December as well. What Orion is waiting to see the fund flows of the withdrawals to make the decision to lower their rate or not during the winter. At least, that’s what I would be doing in their position.

SamL
SamL

So do you mean that funds flowing out implies Orion will keep interest rate, but if funds stay they will lower interest rate?

atrader4
atrader4

Kind of, but not exactly. They are trying to hit certain ratios with different things – think of it as a sweet spot on a baseball bat. Loan growth will also play a significant part as well as fed funds rate.

SamL
SamL

I see. Well, all we can do is wait and see. I’ve no problem with these changes, but realize it can’t last forever, (though was hoping for another year).

Armen
Armen

Could you post a link on your comments about their numbers? I’d love to see it.

Thank you

SamL
SamL

Hopefully this helps prolong the sustainability of the program. We (P1&P2) have one individual account each, though I was wondering if we could also add a joint account. The question is, what form will a “one account per person” rule take. (We don’t need increased cap, just that a joint account is more convenient for actual banking.)

Also, do that many people really have so much cash lying around that you need multiple accounts here, even with large caps? I mean, if someone maxes 5-10 accounts for $150k-$300k, (some comments imply these amounts), are these multi millionaires who need multiple accounts just to store the small percentage of net worth they hold as uninvested cash on the side, or are these people who keep there whole net worth in cash instead of investing it?

Betelgeuse
Betelgeuse

Some people keep most of their money in cash because of bad experiences with investments.

missjenniferd1🦉 🦁

+1, yep, i’m one of them.

Norm
Norm

Still have Enron in my Fidelity account with “?” shown as value. Make me an offer, very negotiable here.

Frank

Doesn’t make it any less dumb

Dubya
Dubya

We found him. We’ve been looking for the guy who can predict the future.

missjenniferd1🦉 🦁

depends on your point of view….. those of us who have been burned by stocks/mutual funds think that investing in stocks/mutual funds is dumb.. you may not think so, until there’s a stock market crash….. we don’t have those worries…. and the tired line “just wait till they recover” yeah, i did that for about 8 years, just to break even (almost, still lost $12k though off of an initial $40k investment— so 8 years, gained nothing, and lost $12k when i finally got out. so for me, i’d rather gain my little 4% interest each year, and do bank bonuses and credit card bonuses. i will never ever buy stocks/mutual funds ever again. that was the worst decision i ever made, and have regretted it for almost 20 years. i have NEVER ever at any time in life, LOST TWELVE THOUSAND DOLLARS (except when i had it in mutual funds) and i have never ever NOT made gain on my money (except when i had it in mutual funds)!!! it still makes me sick to think about it. so im glad that your investments are doing well, but i’ll thank you to not refer to not investing as dumb… different strokes for different folks.

Ben
Ben

What ticker symbol were you in that didn’t recover in 8 years? Strong tech focus which took losses during 1999 and 2000?

missjenniferd1🦉 🦁

the one that never recovered when the others broke even was ptacx (pimco target funds “c”) it had done really well when i got them but unfortunately, at the time that i came into some money (car wreck), the market was doing extremely well, then so that meant that i bought high, and i think i bought in 2000, possibly 1999, and they basically all lost half their value until the recover, which took 8 years to break even except the ptacx was still not right, and i was afraid of another downturn, so i just sold it all. i would like to say, “i would love to buy “low”, but i dont think i would do that either, i’d be too afraid that we might be going into a depression and that maybe take another 8 years to come back up again like last time. if i can remember them one was detcx (i think, it was called delaware trend “c”), ptacx (pimco), slasx, (cant remember what that stood for), and hacax (i think), it was harbor capital i think.

Frito Pendejo
Frito Pendejo

If I could get short term US treasuries with 4% yield I would sell my entire stock portfolio to buy them

Ryan
Ryan

What about municipal bonds? They are tax free.

Frito Pendejo
Frito Pendejo

paying 4%??

Pauline the Bean
Pauline the Bean

Well if you are desperate enough, I suppose there is always TAB which pays 4% on balances up to $50,000.

Eric
Eric

Why do you have to be desperate to use TAB? Is there something wrong with that account? Although I know of the post I haven’t been following the comments.

Pauline the Bean
Pauline the Bean
RD
RD

Muni bonds vs Orion FCU is pretty close on a tax adjusted basis. CMF’s tax equiv yield is 3.73 (assuming highest personal tax rates). But yeah on a risk-adjusted and realistic-tax-adjusted basis, Orion wins out handily.

tribesman55
tribesman55

Glad they are doing this. Hopefully means they will keep it around.

abraham f
abraham f

No its not a marathon.

SamL
SamL

How so?

abraham f
abraham f

The pattern always repeats. Now deal is over and it is time to move money to different accounts while keeping only 1 Orion opened. However that does not guarantee another Orion change in 6 months.

SamL
SamL

I’d say going for a signup bonus is a sprint, but earning interest is a marathon.

tribesman55
tribesman55

Agreed. Sign up bonuses and certain secret deals are sprints, earning interest is def not a sprint.

abraham f
abraham f

Just out of memory i.e. Insight, Netspend, Mango and now Orion. Those who missed the train, simply missed the train.

Mikey
Mikey

It’s funny that you mention Orion. With EBSB and now Popular Direct (probably) imploding on me I’m certainly in the market despite the debit requirement. Hesitated due to some of the negative comments, although people should honestly do a few extra debits for safety and get them all out of the way early in the statement cycle. Will probably jump in a day or two, knowing full well that 4% may or may not even outlast baseball season. Thanks for the update.

Eric
Eric

What negative comments about Orion are you referring to?

arizonapv✨
arizonapv✨

Probably Mikey is referring to the coding of the debit card transactions. Sometimes what worked in the past ceased to work moving forward.

Frito Pendejo
Frito Pendejo

I could have had more than one?!?!

arizonapv
arizonapv

At one time, there was no limit.

Av
Av

This is something that everyone knows that it will happen, but we didn’t know when. I’m still waiting for the email.

AKJohnny
AKJohnny

it was a letter in the mail

AKJohnny
AKJohnny

I got my letter today… I’m about to throw down some $$ on investment real estate… was wondering which account to drain… that question has been clearly answered now.

Jtizzle
Jtizzle

Same. What are you getting into?

AKJohnny
AKJohnny

rental property… in negotiations for a property now

Geemo
Geemo

The numbers for rental re is so darn Horrid now. Wait a few…….

Geemo
Geemo

U missed the boat on real estate. 3 yrs ago vegas condo was $160k today pushing $275k.

Frank

Good, no point killing a good thing early because some people are greedy

Mike
Mike

Fire up the ACH to TAB…

Tom
Tom

I have 3 individual accounts. So its best to close 2 accounts on/after Oct 7 and keep 1 open?
I will ask my wife to open one. Is there a joint account account that can be opened separate from my and wife individual accounts?

AKJohnny
AKJohnny

yes you can have 2 accounts if different adult names on account… limit 1 per adult name… 2 adults= 2 accounts.. I got the letter yesterday.

arizonapv
arizonapv

I thought it was one account per SSN, isn’t that how it works?
I think you can withdraw starting October 1. Someone posted that the 4% ends 9/30. I haven’t gotten the letter though.

Eric
Eric

I just read through all of the comments in this post. Where did you see about 4% ending 9/30?

Sasha
Sasha

Based on my letter you only need to close one account. You can add your wife to your second account as joint and you can also add your wife to your first account as joint also. (unless you keep your money separate) not being joint will cause many issues in case you are unavailable or die. I only have separate accounts for churning but even then feel uncomfortable in case something happens to me it would be an issue to my spouse and requires probate court.

The accounts can be joint and you can be the primary on both and still get the 4.00%. A third account seems possible as long as you have a 3rd adult added that does not have this particular account. Obviously this is more trick and requires a very trust worthy person.

I have 2 premium checkings right now and I am the primary owner on both of them and both are joint with my husband. Based on my letter neither account will be impacted and they confirmed that over the phone. They confirmed since we are 2 adults we get 2 accounts regardless of being individual, joint, who is primary or secondary.

Charles Chang
Charles Chang

So, last month to collect interests from multiple accounts 🙁

BTW: I noticed that Amazon reload is now considered as “billpay card purchase” instead of “signature” or “POS” as posted in the past.

Watch out just in case they don’t count towards the bonus interest.

AKJohnny
AKJohnny

change your amazon payment to run as a credit card and not debit card… it will still work

Amex Fangirl
Amex Fangirl

May I ask how to change it? I did not see any option when I added the card.

Shirley
Shirley

Go to Amazon Payment Option > Click on Edit for the Orion Debit Card > Uncheck where it say Processed as a debit card then click Save.

Amex Fangirl
Amex Fangirl

Found it! Thank you.

Shirley
Shirley

Messaged them asking about whether we’ll still earn 4% until Oct 7 and they said:

“At this time, Orion is evaluating the Premium Perks requirements for the month of October. To ensure pay out of the 4% until your account change date, we recommend completing the Premium Perks requirements”

Sounds like we could still get the 4% interest until the account is actually converted, as long as we meet the requirements, though they’re still evaluating it.

Might not be a good idea to start transferring everything until they decide how this is going to work, don’t want to miss out on the extra interest even if it is only for a week.

arizonapv
arizonapv

this is very interesting. I wonder what the “Premium Perks” requirements will be. This is different from what Erik said “According to CS (I just talked to them), the last day 4% interest accrues is 9/30.”

Shirley
Shirley

The “Premium Perks” requirements are the ones we have to meet each month to get the 4% as spelled out here: https://orionfcu.com/checking/#premiumchecking

I interpret they are just saying that we should continue to meet the requirements as we have been until our accounts are converted and they decide how they are going to pay out the additional interest.

Wouldn’t seem right for them to not pay the 4% interest if we meet the requirements before our accounts are converted.

Erik
Erik

Yes, and the manger insisted today that the 4% ends 9/30. I E-mailed her the letter and she then came back and stated that it will indeed end 10/6 (last day)..

She also said that the Oct REQ must be met 10/1-1/6…..

Then someone else informed me (by messaging) that they are still trying to figure out the final Oct date for meeting the REQ. So it is still in the air.
I find it strange that they didn’t figure these things out before mailing the letters. It must have been a hasty decision..

Shalom
Shalom

I appreciate this thread! So my understanding is that only 1 account will remain premium and subject to meetings the requirements will get 4% going forward (beyond Oct). Yet, the additional accounts will be converted to regular checking accounts that bear no interest. Is there any monthly fee on these regular checking accounts after the conversion, can we avoid the monthly fees? Can we consolidate the other accounts (after conversion) to the main one, keep just one account and close the others? Thanks much!

Oliver
Oliver

Got my letter today in the mail, and it states: “All additional Premium Checking accounts will be converted to the Orion Checking product, which has no monthly fee and currently pays a dividend of 0.05% APY.”

Ritholtz
Ritholtz

I have 2 accounts. Rest is in grow financial which is still going on. Is it possible to convert one account to spouse name.
Thanks

SamL
SamL

Or else simply open new acc in spouse name.

rustum
rustum

Thanks for the info. Forgot about complete requirement. Do we need to be citizen to open account?

Sasha
Sasha

No need to convert. All you need to do is add spouse as joint owner. Add spouse to both your accounts and they will both be ok. It’s not relevant who is primary or secondary either. I have 2 account joint with my husband and I am primary on both of them and according to letter and phone call they are not impacted at all.

Johnz
Johnz

Since the letter clearly said the only affected terms and conditions of the Premium checking change were limiting it to one account per owner and then said ‘all the other terms in your Account Disclosures remain unchanged’ I’m sorta with that manager saying must meet Oct’s req’s to get the 4%. But the last business day for posting is Fri 10/4, so Sat 10/5 or Sun 10/6 isn’t possible. To avoid $5 monthly fee for Oct 1-6 I plan to do my 8 debits & $500 direct deposit to post within 10/1 thru Fri 10/4. By the terms of their own letter I’m then entitled to the 4% interest for 10/1 thru 10/6 and on 10/7 the account type changes to their ordinary checking.

orgalon
orgalon

For people with multiple accounts what method is best for transferring your balances out of Orion?

Johnz
Johnz

Oct 7 I’m moving all but $1 of each excess account to my remaining Premium account. Then trust Ally Transfer which says it’ll withdraw and deliver it to Ally on the same day, Oct 8. Oct 8, in NY I’ll deposit an Ally check for that money into a co-op branch credit union to open a Wyoming credit union CD: the money will earn CD interest from day of deposit, Oct 8 and I’ll only lose interest 1 day, Oct 7.
Could also use wire transfer the funds out or use Ally to ACH pull the money out. A check drawn against the main Premium account would work but I didn’t order checks.

Samuel
Samuel

How realiable have they been in keeping the 4 percent interest? Thinking about ditching Ally.

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