ArkiStan

Anybody use a local bank or credit union with the BancVue Reward Checking? I was "banned" from ING Direct Orange for failing to answer their security questions to confirm my identity. So I looked for other high-yield checking accounts and found out that hundreds of local financial institutions around the US offer 3-4% APY on their checking accounts on balances up to $25,000 as long as you fulfill the following requirements:

- Minimum of 10 debit card purchases
- 1 Automatic Payment or Direct Deposit transfer
- Receive your monthly account statement electronically

They usually also provide perks such as reimbursing up to $25.00 in ATM fees nationwide per month.

Here you can find a list of nation-wide institutions that offer this type of deal.
http://www.highyieldcheckingdeals.com
https://www.checkingfinder.com/

If you had about $10-$15K to stash away for a year or so, would these be a good option or are there better deals out there?



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Prngr44

Banned from a bank? That sounds really odd.

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attgig

interesting. maybe i should leave my bank, and do one of those banks....

the one near me forces 12 debit transactions and reimburses 15 bucks a month.

would be kind of a pain for 12 transactions....

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ArkiStan

totally. i literally laughed out loud when the customer rep told me that. it was one of those multiple choice identification questions they ask you, e.g. which one of the following addresses were you once associated with?" and one of the choices are the address where you lived back in college or something. well several of the questions involved a person that I was supposed to know, but I had never heard of. obviously i'm gonna get those wrong. at the end of the questions the kind rep informed me that they are not able to open an account for me and that i will not be able to be their customer in the future either as they will have my failed test results on file.

ArkiStan

edit.

ArkiStan

I've seen a lot of those "smart money" types on the internet recommending using these as a way of maximizing savings and also supporting your local financial institutions at the same time.

the biggest challenge I see with these programs is the fact that since there are most likely none of their ATM machines in your city, you will rack up way more ATM surcharges than the $15-$25 they reimburse you for. at least most places accept credit cards now, which would help me reach their minimum debit card usage requirement as well. and I could withdraw large amounts of cash at a time.

johnnymk

I had most of my money in ING until recently. They now offer pitiful rates even on amounts over $100K.

I decided last spring to withdraw most of my money from them and invest in Brainsmile's venture and am receiving 15% interest.

Prngr44

No kidding! I was wondering if anyone jumped on that. I wanted to but couldn't sell it to the wife.

ArkiStan

how did I miss THAT?!?
any links? just curious what it's about.

johnnymk

I'm not sure if the company needs additional money. Just email him if you are interested.

ArkiStan

So what happens when you have money in a small local bank and it goes down?
http://www.dailyfinance.com/2009/09/...-total-now-89/

I'm assuming your money is safe if the bank is FDIC insured, but is there a process you must go through in order to get your money back?

Daedalus

From comments I've read from those who have gone through it, the FDIC will usually arrange for a transfer of all accounts to a larger bank such as Chase. The FDIC knows how important a quick and seamless transition is, and they do a pretty good job. I haven't read about anyone being denied access to their online accounts or their cash for more than a day. They keep the physical branches open during the transition and replace some key employees with FDIC employees until all loose ends are tied up. I think it's up to the assuming bank to figure out whether they want to keep each branch open, and I'm guessing any costs they incur will be billed to the FDIC.

zippyjuan

Especially in times like these you want to be careful about banks offering higher than average returns on accounts. They may be in a financially difficult position vis a vis their loan portfolio and trying to attract enough funds so that they do not end up in default. I currently get by fine without a debit card (get cash out when I make a deposit- yes I do that in person still- and use that to budget normal purchases and use a credit card for bigger ones which I pay off every month. No ATM fees, no interest or credit card fees.

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attgig

Arki, have you done this? anyone else do this?

I was thinking about setting my parents up on this, but they're small business owners, so I'm not sure who/what would set up that direct deposit. any ideas?

DarkFury

My credit union has this Reward Checking and I make 4.51% per month on it.

The yield on this account is better than my CD rate at the moment.

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DarkFury

12 Debit transactions is nothing...

Subway... swipe
Buy a Coke at the convenience store... swipe
Pay for Dry Cleaning... swipe
Buy a candy bar... swipe
Buy movie tickets... swipe

Wash, rinse, repeat as needed... and 12 will go by in a jiffy.

I average about 70 transactions a month, however now I don't carry alot of physical cash on me anymore (except for the places that don't accept plastic).

BTW... I still don't use my debit card on the internet.

attgig

yeah, my problem is I use my credit card for almost everything, and not so much my debit card.

DarkFury

To get 4.51% interest, I bet you could change your ways.

Just for the "common" stuff... not the "big" stuff where your point values are higher.