https://www.sfcu.org/?gad=1&gclid=CjwKC ... IAQAvD_BwEbeyou wrote: ↑Sat Nov 11, 2023 4:19 pmWhat credit union and where ?CletusCaddy wrote: ↑Sat Nov 11, 2023 1:07 pmCredit union is the answer here.beyou wrote: ↑Sat Nov 11, 2023 12:38 pmI am not aware of ANY bank checking account that would pay as much as my Vanguard money market fund.Normchad wrote: ↑Sat Nov 11, 2023 7:46 amThis just seems like a hassle to me. Personally, I’d just open an account some place where it’s always free. In my case, I use a credit union. But maybe Citibank is offering some other great thing that justifies the hoops you could jump through.exodusing wrote: ↑Sat Nov 11, 2023 7:43 am
For fees, see the OP and links.
You can maintain a zero balance so long as you make $250/month in Enhanced Direct Deposits, which appear to be any deposits through the ACH.
Leaving a large balance made more sense in the recent era of minimal interest rates. Making this change will likely cause at least some people to notice interest rates are higher and Citi balances at almost 0% are costly.
Hence I will never leave much of a balance in a checking account.
Hence I will always use ACH to deposit cash to any checking account just in time before bills are due.
I have had automated withdrawals from Vanguard to Citi in place long before this change.
I have another "free" online bank account with decent (for checking) interest and still do not leave much of a balance there.
It still pays about 1/10th what Vanguard mmkt funds pay.
Any cash in that account is also deposited either with ACH or mobile paper check deposits.
This change by Citibank actually simplified the ability to get no fee checking.
Before you need ACH AND electronic bill payments, now only ACH, no bill pay required.
And in the past they have counted every and all sources of ACH, just not checks and internal transfers, same as going forward.
This is really a non-issue for most customers, except those who kept a large balance and never deposited from any other institution.
For those customers only, now they have to leave an even bigger balance. But that is not something I would recommend, unless it's at Citi brokerage holding ETFs for instance. Any deposit product they have is just terrible in terms of rates. Why keep a balance in their bank products ?
My credit union pays 4% on checking with a $25k+ balance and $500/month in spend on their credit card (which earns 2% cashback on everything, no annual fee).
It keeps me from feeling guilty about leaving money in checking and saves me the headache of sweeping out excess money into brokerage.
Not aware of any with 4% checking accts around where I live.
Even so, I can get a higher yield on many ETFs in any brokerage, and in savings bonds. 4% would be good for checking, but I wouldn’t want to keep $25k in any checking acct. Not just because I can do better than 4% but also for security. With check washing, debit card fraud, ach pulls, I would never keep much in a checking acct no matter what rate they pay me. And do not want complexity/obligation of required recurring spend on their cc. Instead of $25k there can keep $30k at citi brokerage and keep zero in checking, and I still have a 2% cc without obligation to use it. Citi also throws in free checks, free certified checks, free stop payment on checks. A truly free checking acct. The only interest for me would be potentially for better customer service. Citi does have mostly bad service, except the branch in-person service.
Anybody can join by joining one of their non-profit organizations.
There is zero complexity with the credit card spend requirement. I put $500 worth of monthly utilities and subscriptions autopay on the credit card and then stick it in a drawer.
Does Citi offer unlimited ATM fee reimbursement like this credit union does?