Interest Checking Account - Credit Union

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djroberts2010
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Joined: Wed Jun 22, 2016 10:20 am

Interest Checking Account - Credit Union

Post by djroberts2010 » Wed Oct 05, 2016 4:25 pm

So, I want to increase my earning power with my short-term cash account/emergency fund.


I stumbled upon a credit union called Consumers Credit Union. They are located in Illinois. ( https://www.myconsumers.org/personal/ch ... cking.html )



They are offering an interest rate of 4.59% APY assuming you satisfy their monthly spending criteria (this is no problem).

Question is concerning tax. I am currently in Texas (no state income tax). Because this credit union is in Illinois, and the interest from the account is being earned in Illinois, will I be subject to Illinois state income tax on interest from the credit union? I have heard about paying out-of-state income tax for state, but I was not able to find much information on this. Can you all point me in the right direction to figure this out?

Thank you

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Sheepdog
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Location: Indiana, retired 1998 at age 65

Re: Interest Checking Account

Post by Sheepdog » Wed Oct 05, 2016 4:47 pm

That's a lot of hoops to go thru to get 4.59%. That isn't easy for me. I have had similar high interest checking accounts, and it really isn't easy. Miss one thing, one day, and you don't get anything.

Earn 3.09% APY* on balances up to $10,000

Complete at least 12 Debit/Check Card point-of-sale purchases (transactions must be made without using your personal identification number (PIN) to count toward the minimum of 12 and must post and clear your account as a credit transaction on or before the last day of the calendar month)
Each calendar month, one direct deposit OR one ACH debit OR pay one bill when using Consumers Credit Union's free online bill payment system must post and clear your account on or before the last day of the calendar month
Access Online Banking at least once each calendar month
Receive eDocuments (enroll and accept the disclosure)

Earn 3.59% APY* on balances up to $15,000

Simply meet the requirements to earn 3.09% APY . . . then add:
Spend $500 or more in CCU Visa Credit Card purchase transactions**; no minimum number of transactions.

Earn 4.59% APY* on balances up to $20,000


Simply meet the requirements to earn 3.09% APY . . . and
Spend $1000 or more in CCU Visa Credit Card purchase transactions**; no minimum number of transactions.

**Purchases must clear and be transmitted by the card processor to CCU to count towards the period in which the purchase(s) was made. Posted transactions may take up to three (3) business days or more to be added to your Rewards counter.
People should not say everything they think. They should think about everything they say.

NoD
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Joined: Thu Jan 14, 2016 12:35 pm

Re: Interest Checking Account - Credit Union

Post by NoD » Wed Oct 05, 2016 4:57 pm

Can you cheese these requirements by going to the store one night and just buying 12 bags of chips in separate credit transactions? 1k a month is the killjoy, I'd rather have those Alaska Airlines miles on my CC...
Some day we'll look back on all this and plow into a parked car.

Jags4186
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Re: Interest Checking Account - Credit Union

Post by Jags4186 » Wed Oct 05, 2016 5:42 pm

NoD wrote:Can you cheese these requirements by going to the store one night and just buying 12 bags of chips in separate credit transactions? 1k a month is the killjoy, I'd rather have those Alaska Airlines miles on my CC...


12 $0.50 reloads of your amazon account should work for your transactions.

And $718 in incremental interest on $20,000 in deposits vs. a 1% savings account is worth more to me than 12,000 of any points. On top of that you'd be getting a minimum of $120 in cash back so, you need to ask yourself, is this account hassle worth $838/yr or would you rather do nothing and get yourself 12,000 Alaska Miles.

NoD
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Re: Interest Checking Account - Credit Union

Post by NoD » Wed Oct 05, 2016 5:57 pm

True enough. Any insight on the tax issue? Sure to come up with that much interest.
Some day we'll look back on all this and plow into a parked car.

jjface
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Re: Interest Checking Account - Credit Union

Post by jjface » Wed Oct 05, 2016 5:58 pm

I have one and it is worth the extra 5 minutes work for 4.59%. Their credit card gives 3% on groceries so it is pretty good with no annual fee. I have some debit card transactions run monthly and any extra I need I top up with places like amazon reloads for $0.5-$1. If I run low on credit card purchases I prepay my electric. Works great. Customer service is good too and quick to respond to secure messages.

Tax should be your regular state tax regardless of where the CU is located. I don't see why it wouldn't be.

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dm200
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Location: Washington DC area

Re: Interest Checking Account - Credit Union

Post by dm200 » Wed Oct 05, 2016 6:05 pm

Tax should be your regular state tax regardless of where the CU is located.


This is correct.

Remember also that this "deal" can probably be changed or terminated in the future.

NoD
Posts: 48
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Re: Interest Checking Account - Credit Union

Post by NoD » Wed Oct 05, 2016 6:28 pm

jjface wrote:I have one and it is worth the extra 5 minutes work for 4.59%. Their credit card gives 3% on groceries so it is pretty good with no annual fee. I have some debit card transactions run monthly and any extra I need I top up with places like amazon reloads for $0.5-$1. If I run low on credit card purchases I prepay my electric. Works great. Customer service is good too and quick to respond to secure messages.

Tax should be your regular state tax regardless of where the CU is located. I don't see why it wouldn't be.



Is there a transaction counter or somesuch on the account to easily see how close you are to meeting the requirements? You mean the check/debt card you have to use for credit transactions gives cashback, or is that in addition to the card you need to meet the 12 purchases?
Some day we'll look back on all this and plow into a parked car.

jjface
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Joined: Thu Mar 19, 2015 6:18 pm

Re: Interest Checking Account - Credit Union

Post by jjface » Wed Oct 05, 2016 7:08 pm

NoD wrote:
jjface wrote:I have one and it is worth the extra 5 minutes work for 4.59%. Their credit card gives 3% on groceries so it is pretty good with no annual fee. I have some debit card transactions run monthly and any extra I need I top up with places like amazon reloads for $0.5-$1. If I run low on credit card purchases I prepay my electric. Works great. Customer service is good too and quick to respond to secure messages.

Tax should be your regular state tax regardless of where the CU is located. I don't see why it wouldn't be.



Is there a transaction counter or somesuch on the account to easily see how close you are to meeting the requirements? You mean the check/debt card you have to use for credit transactions gives cashback, or is that in addition to the card you need to meet the 12 purchases?


Yes you can track your progress once you log in - it has a clear summary of all the requirements and whether you have met them or your progress towards each.

There are two card requirements - 12 debit card transactions of any amount and secondly for the two higher interest tiers you need to use their credit card for $500 or $1000 of spend.

The credit card they have works like a standard credit card that offers 3% cash back on groceries 2% on something else and 1% on the rest. This is in addition to the interest from the checking account. So you are still getting some credit card rewards as well.

rec7
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Location: ST LOUIS

Re: Interest Checking Account

Post by rec7 » Wed Oct 05, 2016 8:42 pm

Sheepdog wrote:That's a lot of hoops to go thru to get 4.59%. That isn't easy for me. I have had similar high interest checking accounts, and it really isn't easy. Miss one thing, one day, and you don't get anything.

Earn 3.09% APY* on balances up to $10,000

Complete at least 12 Debit/Check Card point-of-sale purchases (transactions must be made without using your personal identification number (PIN) to count toward the minimum of 12 and must post and clear your account as a credit transaction on or before the last day of the calendar month)
Each calendar month, one direct deposit OR one ACH debit OR pay one bill when using Consumers Credit Union's free online bill payment system must post and clear your account on or before the last day of the calendar month
Access Online Banking at least once each calendar month
Receive eDocuments (enroll and accept the disclosure)

Earn 3.59% APY* on balances up to $15,000

Simply meet the requirements to earn 3.09% APY . . . then add:
Spend $500 or more in CCU Visa Credit Card purchase transactions**; no minimum number of transactions.

Earn 4.59% APY* on balances up to $20,000


Simply meet the requirements to earn 3.09% APY . . . and
Spend $1000 or more in CCU Visa Credit Card purchase transactions**; no minimum number of transactions.

**Purchases must clear and be transmitted by the card processor to CCU to count towards the period in which the purchase(s) was made. Posted transactions may take up to three (3) business days or more to be added to your Rewards counter.


Yes this does not sound easy. I could not do it. I would blow my budget if I did it.
Last edited by rec7 on Thu Oct 06, 2016 11:26 am, edited 1 time in total.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

NoD
Posts: 48
Joined: Thu Jan 14, 2016 12:35 pm

Re: Interest Checking Account - Credit Union

Post by NoD » Wed Oct 05, 2016 9:40 pm

jjface wrote:
NoD wrote:
jjface wrote:I have one and it is worth the extra 5 minutes work for 4.59%. Their credit card gives 3% on groceries so it is pretty good with no annual fee. I have some debit card transactions run monthly and any extra I need I top up with places like amazon reloads for $0.5-$1. If I run low on credit card purchases I prepay my electric. Works great. Customer service is good too and quick to respond to secure messages.

Tax should be your regular state tax regardless of where the CU is located. I don't see why it wouldn't be.



Is there a transaction counter or somesuch on the account to easily see how close you are to meeting the requirements? You mean the check/debt card you have to use for credit transactions gives cashback, or is that in addition to the card you need to meet the 12 purchases?


Yes you can track your progress once you log in - it has a clear summary of all the requirements and whether you have met them or your progress towards each.

There are two card requirements - 12 debit card transactions of any amount and secondly for the two higher interest tiers you need to use their credit card for $500 or $1000 of spend.

The credit card they have works like a standard credit card that offers 3% cash back on groceries 2% on something else and 1% on the rest. This is in addition to the interest from the checking account. So you are still getting some credit card rewards as well.


Nice! Last question. I reckon with the first month and the time it takes to get cards etc, hitting the reqs at first would be a challenge. Have you ever gone below the 1k threshold? Do they fluidly move you to the 3.59/4.59 each month depending on your use, or is it once you fail to meet top tier the gig is up? I appreciate the insight. Seems quite doable in our situation.
Some day we'll look back on all this and plow into a parked car.

inspector00
Posts: 74
Joined: Sun Jun 30, 2013 9:08 pm

Re: Interest Checking Account - Credit Union

Post by inspector00 » Wed Oct 05, 2016 9:54 pm

NoD wrote:Nice! Last question. I reckon with the first month and the time it takes to get cards etc, hitting the reqs at first would be a challenge. Have you ever gone below the 1k threshold? Do they fluidly move you to the 3.59/4.59 each month depending on your use, or is it once you fail to meet top tier the gig is up? I appreciate the insight. Seems quite doable in our situation.


There is a status summary on the website that will tell you in pretty good detail the count of each type of transaction and the rewards level will tell you what level you've qualified for at that point in time during the month (see below). You can qualify for any level during any month and if you want to take a break from the game no penalty for leaving the account empty.

Rewards Update
Rewards Level: Not Qualified
Debit Card Transactions: 0
EStatements: Yes
DD/ACH: No
VISA: Yes
VISA Total Amount: $36.20

jjface
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Re: Interest Checking Account - Credit Union

Post by jjface » Wed Oct 05, 2016 10:19 pm

You get whatever rate you qualify for that month - no penalty for not meeting a certain level and you can vary the level each month if you like. What happens is they check what level you are at the end of the month and apply the interest for the past month then. If you qualify for the month you get the rate for the full month retrospectively. It is all seamless. As inspector00 says you can leave it for months without a problem too and you'll just receive the 0% rate or 0.1% or whatever it is for that month.

I like the account. Not difficult at all once you get into the swing of things.

The only thing to note is that you have to be careful with credit card transactions made near the end of the month as they have to post by the 27th to count for the current month (and not the next) and they take up to a few business days to post from the purchase date. Sounds complicated but I just make sure I hit the $1k the week before the end of the month to be sure!

See here https://www.myconsumers.org/documents/T ... Drafts.pdf

NoD
Posts: 48
Joined: Thu Jan 14, 2016 12:35 pm

Re: Interest Checking Account - Credit Union

Post by NoD » Thu Oct 06, 2016 11:11 am

jjface wrote:You get whatever rate you qualify for that month - no penalty for not meeting a certain level and you can vary the level each month if you like. What happens is they check what level you are at the end of the month and apply the interest for the past month then. If you qualify for the month you get the rate for the full month retrospectively. It is all seamless. As inspector00 says you can leave it for months without a problem too and you'll just receive the 0% rate or 0.1% or whatever it is for that month.

I like the account. Not difficult at all once you get into the swing of things.

The only thing to note is that you have to be careful with credit card transactions made near the end of the month as they have to post by the 27th to count for the current month (and not the next) and they take up to a few business days to post from the purchase date. Sounds complicated but I just make sure I hit the $1k the week before the end of the month to be sure!

See here https://www.myconsumers.org/documents/T ... Drafts.pdf


Awesome, thanks! I guess the only trick while you build up the balance, is to minimize the 12 debt purchases so you aren't forced to spend more than you get in interest every month. As mentioned above, good thing you can reload an amazon gift card balance .50 at a time :D
Some day we'll look back on all this and plow into a parked car.

djroberts2010
Posts: 10
Joined: Wed Jun 22, 2016 10:20 am

Re: Interest Checking Account - Credit Union

Post by djroberts2010 » Thu Oct 06, 2016 1:09 pm

Thanks for all of the responses and discussion!

Awesome, I did not know about the amazon reloads for 0.50 cents! The requirement for debt transactions specifies a point-of-sales transaction without a pin. This works for the online reloads?

As for the credit card... I had no idea about the rewards on it. I currently use the Amex Blue Cash Preferred, so the 6% for groceries trumps this.


Part of the requirements is that you use their bill pay system. Anyone have experience with that? Is that easy enough to set up for auto pay?

jjface
Posts: 2462
Joined: Thu Mar 19, 2015 6:18 pm

Re: Interest Checking Account - Credit Union

Post by jjface » Thu Oct 06, 2016 4:20 pm

djroberts2010 wrote:Thanks for all of the responses and discussion!

Awesome, I did not know about the amazon reloads for 0.50 cents! The requirement for debt transactions specifies a point-of-sales transaction without a pin. This works for the online reloads?

As for the credit card... I had no idea about the rewards on it. I currently use the Amex Blue Cash Preferred, so the 6% for groceries trumps this.


Part of the requirements is that you use their bill pay system. Anyone have experience with that? Is that easy enough to set up for auto pay?


Yes online reloads work. You need to set your card as a credit card I think on amazon rather than a debit card.

I've never used the bill pay but I have an automatic monthly ACH pull of $100 a month from my main checking into my myconsumers account. That covers that requirement and it runs on autopilot. I could do less but I just transfer any excess back after a few monhs.

Nearly A Moose
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Re: Interest Checking Account - Credit Union

Post by Nearly A Moose » Fri Oct 07, 2016 8:27 am

Suggest setting an internal benchmark to look at a year down the road. For example, were you able to get the 4.5% each month (i.e. Did you get through all the hoops), were there any particularly time intensive aspects of this over the year, did you find jumping through the hoops irritating such that it felt like extra work and added stress to your life, or was it just background noise? Evaluate after a year to make sure you're getting the full value out of this and not lowering your enjoyment of life.

4.5% guaranteed return ain't bad...
Pardon typos, I'm probably using my fat thumbs on a tiny phone.

furwut
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Re: Interest Checking Account - Credit Union

Post by furwut » Fri Oct 07, 2016 8:46 am

An issue that has been raised with Consumers is that the POS transactions to qualify for the bonus have to be processed as credit not debit. Presumably Consumers gets a higher merchant fee for credit transactions. One can not be certain how a merchant will process a transaction. Even if you select credit at the terminal the merchant is allowed to change it to debit.

Its been reported that Walmart changes all credit transactions under $50 to debit when a debit card is used. Other merchants are doing the same thing. So extra close attention is required with this rewards account in order to earn the bonus rate.

NoD
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Re: Interest Checking Account - Credit Union

Post by NoD » Fri Oct 07, 2016 9:38 am

furwut wrote:An issue that has been raised with Consumers is that the POS transactions to qualify for the bonus have to be processed as credit not debit. Presumably Consumers gets a higher merchant fee for credit transactions. One can not be certain how a merchant will process a transaction. Even if you select credit at the terminal the merchant is allowed to change it to debit.

Its been reported that Walmart changes all credit transactions under $50 to debit when a debit card is used. Other merchants are doing the same thing. So extra close attention is required with this rewards account in order to earn the bonus rate.


I just signed up yesterday (still waiting for the approval process) so I'll definitely keep an eye out on this.
Some day we'll look back on all this and plow into a parked car.

nolapepper
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Re: Interest Checking Account - Credit Union

Post by nolapepper » Sun Oct 09, 2016 7:49 pm

My local credit union has a similar rate and even though there is no clear statement as to the definition of "legitimate" transactions, the bank teller told me that in the past, the denied 12 $1 purchases of candies as legitimate and they think the customer was abusing the system and therefore those transactions are not qualified.

I am using the $5 Amazon auto refill. Hopefully they would think it is better than those $1 transactions.

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dratkinson
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Re: Interest Checking Account - Credit Union

Post by dratkinson » Mon Oct 10, 2016 7:36 pm

Intuit (TurboTax) says we pay any tax owed in our home state.
See: http://www.google.com/search?q=out+of+s ... rest+taxes


Long story short. High teaser rates drop (2007/now: Presidential Bank checking 4.50%/0.12%, HSBC online savings 5.05%/0.10%) and I now prefer simplicity so no longer do rate-chasing "hoops". (But I did find a single-state muni to scratch the itch to reach for higher yield.)
d.r.a, not dr.a. | I'm a novice investor, you are forewarned.

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