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2.15% Reward Checking Account at a Richmond Virginia CU (New Generations)

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Update 10/15/09: The top yield has fallen to 2.15% APY.

New Generations FCU is offering a reward checking account called New Generations High-Yield Checking. It pays 2.15% APY on balances up to $50,000 (1.90% for above) if the following monthly requirements are met: 1) 15 debit card transactions, 2) one direct deposit or automatic debit transaction, and 3) receive electronic statements. If these are not met, the rate falls to 0.05%. There are no monthly fees or minimum balance requirements.

One thing to note about this account is that there's no mention of ATM fee refunds. Most reward checking accounts offer automatic refunds of ATM fees when you use other banks' ATMs (if the requirements are met). This might be good for those who are only interested in the high yield and don't care ATMs. The credit union can spend money on paying high interest rather than ATM fees. However, free ATMs may attract people who don't plan to keep large balances and will be more likely to have overdrafts. Having more of these people may allow a financial institution to be able to keep the rate high.

Another thing to note about this reward checking account is that it requires 15 debit card transactions per month. The average for reward checking is 10. At least you get a larger than average balance cap ($50K rather than $25K) and a respectable rate for balances above the cap (3.01% APY). That 3% is now about the same as what you get on many online savings accounts.

Membership is open to those who live, work, worship, volunteer or go to school in the City of Richmond. You can also be eligible to join via Select Employer Groups. Please refer to their Membership Eligibility page for more details. Membership requires a $2 fee and a minimum deposit of $5 in the share savings account.

The credit union has 6 branches located in Richmond, VA. It's federally insured by the NCUA (Charter # 6878). The credit union has $57.9 million in assets and 18,595 members.

Other High Yield Reward Checking Accounts

For other reward checking accounts and for more information on these accounts, please refer to the following posts:

Rate History:
09/30/09: 2.15% APY up to $50K; 1.90% APY over $50K
08/01/09: 2.20% APY up to $50K; 1.95% APY over $50K
06/30/09: 2.50% APY up to $50K; 2.25% APY over $50K
04/30/09: 2.75% APY up to $50K; 2.51% APY over $50K
03/26/09: 3.00% APY up to $50K; 2.76% APY over $50K
02/27/09: 3.25% APY up to $50K
01/30/09: 3.75% APY up to $50K; 3.01% APY over $50K (rates listed on home page)
11/30/08: 4.10% APY
04/01/08: 5.01% APY
03/21/08: 6.01% APY
  Tags: Virginia, checking account, reward checking account

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Comments
8 comments.
Comment #1 by Anonymous posted on
Anonymous
Thanks for posting this. I checked their website but couldn't find the "Select Employer Groups" being listed. All they have is a section asking your company to call to join the CU.

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Yes, I couldn't find the SEG list either.

1
Comment #3 by Anonymous posted on
Anonymous
Does anyone have any comments to make about joining a credit union based on one of the "stretch" requirements? I attend a church that has a Richmond, VA address but it literally just outside the city limits. The same goes for my place of employment, and our home is about 5 miles from the city limits (but also has a Richmond address). What if I attend a different church this weekend?

1
Comment #4 by Anonymous posted on
Anonymous
As of 11/30/08 the top yield has fallen to 4.10% APY. Other rates remain same.

1
Comment #5 by Anonymous posted on
Anonymous
As of 1/30/09 the two top rates are 3.75% APY up to $50K; 3.01% over.

1
Comment #6 by Anonymous posted on
Anonymous
The homepage rates and cap seem to have disappeared.
But, 'exciting' news about a new check card "merchandise rewards" program that is coming.

1
Comment #7 by Anonymous posted on
Anonymous
As of 2/27/09 the top rate dropped to 3.25% APY. Other rates remain same.

1
Comment #8 by Anonymous posted on
Anonymous
As of 3/26/09 the top rates are: 3.00% APY up to $50K; 2.76% over. Base rate remains same.

1