Posted by William Charles on March 7, 2017
Current Savings Account Sign Up Bonuses

Published on March 7th, 2017 | by William Charles


Premier Members Credit Union Reverse Tiered Money Market Account – Up To 3% APY

Offer at a glance

  • Interest Rate: Max of 3% APY
  • Minimum Balance: None
  • Maximum Balance: None ($2,000 for top rate)
  • Availability: Nationwide with $5 donation
  • Direct deposit required: No
  • Additional requirements: No
  • Hard/soft pull: Unknown
  • ChexSystems: Unknown
  • Credit card funding: Up to $500 with Visa or Mastercard
  • Monthly fees: None
  • Insured: NCUA

The Offer

Direct link to offer

  • Premiers Credit Union offer a money market account with a reverse tiered interest rate (the more you have in the account, the lower APY you receive). The tiers are as follows:
    • $0-$2,000: 3% APY
    • $2,000-$5,000: 1.5% APY
    • $5,000-$10,000: 0.75% APY
    • Rates continue to decline

This means the first $2,000 in the account will earn 3% APY, the next $3,000 will earn 1.5% APY etc.

premier members credit union

The Fine Print

  • No minimum deposit required to open an account.
  • Limit one Money Market Account per social security number.
  • Federal Regulation D states that you may make no more than six (6) automatic or preauthorized transfers from your share savings or money market account per calendar month.
  • Certain withdrawal limits apply to Money Market Accounts, be sure to review your Membership and Account Agreement Disclosure for details.
  • All bank account bonuses are treated as income/interest and as such you have to pay taxes on them

Avoiding Fees

This account does not have any monthly fees to worry about. Unsure if there is any early account termination fee or not

Becoming A Member

There are a number of ways to join for free (but most people won’t be eligible). In addition anybody can join by making at least a $5 donation to Impact on Education (they will also match your donation).

Our Verdict

Problem with this account is only the 3% and 1.5% APY’s are interesting (and even the 1.5% isn’t that interesting). It’s nice that there are no requirements, but for most people it simply won’t be worth opening a new account for. If you max out the 3% then you’re only getting $60 annually in interest (and that doesn’t even include the opportunity cost of putting that money into another high interest account). I think most people would be better off opening another account for a bank account bonus instead.

You can view a full list of accounts with high APY’s available here. The other thing to mention is that this account is also relatively new (started January, 2017) so there is no guarantees this rate will stick around long term.

Hat tip to reader John S

17 Responses to Premier Members Credit Union Reverse Tiered Money Market Account – Up To 3% APY

  1. Jason says:

    Funding Option(s)
    Transfer Funds From Other Financial Institution (Maximum amount allowed: $5,000.00)
    Transfer from Premier Members CU Account
    Credit Card / Debit Card (Maximum amount allowed: $500.00)

    Master Card and Visa only, no matter how many accounts you add, the total cannot be more than $500.

    No Chex questions.

    Application is manually reviewed by loan officer therefore do not know whether credit card funding (double cash) is coded as purchase, not charged yet. Also not sure if application will be declined such as too many inquiries.

    On Applicant info page, make sure under “selected accounts”, add”money market”. I personally recommend to add basic checking with free debit card and opt out all overdraft protection. They advise it will charge $32 per item which I think it’s a trap if you want overdraft.

    • JB99 says:

      Thanks for the info, Jason!

      Curious,…is this a recent opening for you, or have you had this account for several months or years? If you have had it for some time, what are your thoughts on this institution?

      Question for you and anyone else,…if there were NO Chex / Identity Questions during the application, can we reasonably assume that there wouldn’t be an official Chex inquiry reported on our SS#?

      • JB99 says:

        Sorry, just re-read your post, and see now that you only recently applied.. Somehow I missed that you are waiting for the CC deposit to post.

    • JASON says:

      Possible hard inquiry:

      Received a letter from Premier Members today that they cannot approve my account because I froze my Experian credit report. In the letter they allow consumer to provide PIN to forzen report to “temporarily allow a credit pull”. They use the language credit pull so I can say it’s a possible hard inquiry on Experian report.

      3% with $2000 cap, $60 a year which is $5 a month and that’s a possible hard pull, do not recommend.

  2. Aaron Howell says:

    Under fine print you listed: “All bank account bonuses are treated as income/interest and as such you have to pay taxes on them”

    Interest earned wouldn’t usually be considered a bonus would it? Was that last line placed in there as a standard warning, or would I need to include a 1099 for all money earned from this?

    • Catapult says:

      Any bank bonus / interest you earn means you will receive a 1099-INT or 1099-MISC. This is pretty standard

    • MrSeabass says:

      All bank account interests is taxable

    • niiimz says:

      The question would normally be ‘is a bank account bonus considered interest?’ since interest should be reported on form 1099-INT. Which should answer your question. (And yes bank bonuses are usually reported as interest)

      • Aaron says:

        I had no idea bank interest was reported. (still learning) Thanks for the response & clarity Catapult & niiimz

        • niiimz says:

          No worries, we’re all still learning. 🙂 Just a little more info: By law, they are only required to send a 1099 if $600 or more is paid to you in a year. However, (1) many will still send out 1099’s even if that threshold amount is not met (2) it is your responsibility to report the income on your tax return whether you get a 1099 or not.

          • JB99 says:

            I don’t believe this is correct advice.

            It seems you are mixing up 1099-INT and 1099–MISC.

            Banks are required to report and send out 1099-INT forms to both the IRS and consumers if the amount is in excess of $10, whether that threshold is reached by daily bank interest, by bank bonuses,..or interest from CDs, to name a few.

            The $600 threshold applies to 1099-MISC forms, which in *most* cases, would be exactly that, Miscellaneous Income as an independent contractor, for example. But only if that $600 threshold is from a single employer. Thus, as an independent contractor,…if you were paid $400 by each of 4 employers, then the 1099-MISC most likely will not be issued. It still may be, so read up if this concerns you as it can get complicated. The 1099-MISC should generally not apply to anyone doing bank or credit card bonuses.

            Getting back to the 1099-INT, which does apply to folks receiving bank bonuses,…again, the threshold is $10 to trigger the issuance of that form. But,…regardless if you receive the form or not, by law, you are still required to report that income. Obviously, it’s up to you to comply or not.

  3. larry says:

    Deals like this do not work with a max cap except for penny players!

  4. Gnarly Cow says:

    My application went to manual review, and was later declined, most likely due to Chex inquires.

    • JASON says:

      Hello Gnarly, how can you tell yours declined? Also, can you check your experian report and advise whether there is a hard pull for that? Thank you

      • Gnarly Cow says:

        Hi Jason,

        You can log back into their application system and check the status there. For me the status went from “referred” to “declined”.

        I see a soft pull from Premier Members CU on my Experian report, so no hard pull for me.

        • Gnarly Cow says:

          I haven’t received a letter from them in the mail yet. My Experian has a ton of inquires too, so there is a possibility they declined me due to that, and it has nothing to do with Chex.

      • Gnarly Cow says:

        Update: Received the adverse action letter today. It essentially says they denied me because of too many inquires on my Experian report. Oh well, at least it was only a soft pull.

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