Better than a CD and still FDIC Insured
Posted on September 24, 2008
Filed Under Saving | Leave a Comment
After reading a really good article on using CD’s to ladder an emergency fund on Blueprint for Financial Prosperity, I decided to check out CD rates. When checking my Credit Union’s web site, I found a deal even better than a CD – they are offering 5.0% APY on checking account balances up to $50,000. That is even better than a 5 year CD from ING Direct. There are only a few conditions:
- Make 12 debit card transactions per month
- Have one direct deposit or ACH auto debit transaction per month
- Enroll and receive your monthly statement electronically
I already have direct deposit and electronic statements, so the only thing I need to do is start using my debit card for purchases I would normally use my credit card for. There doesn’t seem to be any catches. In fact, besides the 5.0% APY, they also refund any ATM fees at the end of each month. Like using a credit card, this will require paying attention though. If I don’t meet the terms (i.e. 12 purchases on the debit card) APY for the month drops to 0.10% and ATM fees aren’t refunded. Definitely worth a look though.
Cheers,
Ken
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