Consumers Credit Union Pays Up To 5.09% APY on Rewards Checking - National Offer

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Consumers Credit Union has a free rewards checking account in which depositors can earn up to 5.09% APY on balances up to $10,000. There are no fees with the account and the credit union will refund fees from other banks' ATMs when the reward requirement balances are met. Best of all this account is available nationally, anyone can join the credit union and open it, and access is nationwide do to the credit unions participation on a co-op program.

Consumers Credit Union has a free rewards checking account in which depositors can earn up to 5.09% APY on balances up to $10,000. There are no fees with the account and the credit union will refund fees from other banks' ATMs when the reward requirement balances are met. Unlike many credit union offers, this account is available nationally. Anyone can join the credit union and open it, and access is nationwide due to the credit unions participation in a co-op program. The only requirement to become a member of the credit union is to first join the Consumers Cooperative Association by paying a one-time fee of $5.00. The downside to the account is the rather lengthy list of actions you must take to get the rate.

Here's how the rewards checking account works:

To earn the 3.09% APY*, and ATM refunds complete the following requirements:

  • 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 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)

To earn 4.09% APY*, and ATM refunds perform the following each qualifying cycle:

Meet the requirements to earn 3.09% APY . . . then add:

  • Complete 12 CCU VISA Credit Card purchase transactions, NO MINIMUM purchase requirement.

To earn 5.09% APY*, and ATM refunds perform the following each qualifying cycle:

Simply meet the requirements to earn 3.09% APY . . . and:

  • Spend $1000 or more in CCU VISA purchase transactions, regardless of the number of purchases

The 5.09% APY is the highest rewards checking rate in the country according to our database. Using the BestCashCow Savings Booster Calculator, I calculated that the average depositor could earn an extra $1,972 over five years putting their money into this account versus keeping it in a traditional 0% checking account.

Compared to Rewards Credit Card

The question to ask is does it make sense to open a rewards checking account and earn the 5.09% on balances up to $10,000 or to use a rewards credit card for making purchases? In order to get the 5.09% rate, you will have to spend $1,000 or more on your CCU Visa card in addition to the 12 debit card purchases you must make every month. If you did this and kept the maximum of $10,000 in the account, you would earn $500 in interest over the course of year.

View top rewards credit card programs.

Now, let's assume you make the same purchases using a reward credit card. The redemption on a rewards credit card can be anywhere from 1-2% of card spending. Assuming a midpoint of 1.5%, you would need to spend $33,333 on your credit card to earn $500. So, if you plan to put more than $33,333 on your credit card, you should stick with the credit cards rewards account. If you plan to spend less than that, the CCU offer will come out ahead.

About Consumers Credit Union

Consumers Credit Union is headquartered in Waukegan, IL and has $584 million in assets, making it a mid-sized credit union. It has six branches in that general area. The credit union participates in the Co-op ATM and branch network, allowing you to use branches close to your location as if it were an actual branch of Consumers Credit Union. There are nearly 5,000 branches, 2,000 self-service locations, and 30,000 ATMs in all 50 states. I checked and there is a participating branch 1.2 miles from my location even though I live hundreds of miles from an actual Consumers Credit Union branch.

In addition, the credit union offers mobile banking and remote check deposit through a mobile device, making it easy to deposit funds.

If your transaction pattern fits the list of requirements outlines above, and you don't want to participate in credit card rewards program, then this account is worth a look.

View more rewards checking account accounts

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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Comments

  • Fred Dosido

    December 13, 2014

    Can't hardly see the worth in spending an extra $1000 a month at, let's say, 12% interest (or whatever rate the credit card is at) in order to get 1% more on your $10,000 (nets about $8 a month more)...

    Spend $1000 to get $8?

    Maybe if someone already had a mess of credit card debt piled up, this would work alright?

  • Jesse

    February 18, 2015

    It is worth it. If anyone joins and needs a referral to get extra $50, email me at dnasmith1499@yahoo.com. Thanks.

  • Peg T.

    February 22, 2015

    You don't have to spend a $1,000.00 in order to get 4.09% on 20,000.00 and with the dismal rates out there on deposit accounts, 4.09% on $20,000. is pretty darn good.If you do the 4.09% requirements and keep $20,000. in your account, that's approx. $67.00 interest you earn each month. AND it's a guaranteed rate until Aug. 2015. What's not to love about this deal?

    Plus, it's a checking account with no minimum balance, so no fees for being under a certain balance. ATM fees are refunded. Also, being a checking account, your money is not tied up in the event you need it.

    You can open online or call and do the entire process over the phone all at once. They make it very easy for you and everyone I've dealt with there has been extremely helpful and nice. I like dealing with a credit union and I like dealing with efficient people, which they are. I received my credit card in 5 business days and my debit card in 6 business days. I had already set my account up with another bank (national bank)so I was ready to ACH money in or out and already had set it up to make an ACH debit out of to my phone company on a monthly basis which satisfies that requirement. I had my debit charges and credit charges done in no time.

    Also, after you've gotten everything set up and you are making your debit/credit charges and you go online to your account to see where you are with them, they have a little box that will show you each requirement you've qualified for at the % level you're striving for. Once you've reached the level you're aiming for (say 4%) it will tell you if you have made it. (It notifies you when you reach the 3.09% level, then tells you if you've reached the 4.09% level, etc.) How cool is that? It's a win-win situation.

    I would also love to refer anyone for the 50/50 program they have going at the moment. LOL $50.00 for you and $50.00 for me. Whoo Hoo! Can't beat a deal like that!

    If I can help you with that or if you have any questions that I might be able to help you with, I'd be more than happy to do so. You can email me at peg09@rocketmail.com. Thanks.

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