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Debit Card Dangers - When to Use Credit Cards Instead of Debit Cards4.63% 53-Month / 4.03% 23-Month CD at an Idaho Credit Union (Advantage Plus)
POSTED ON BY Ken Tumin
The credit union also has a money market savings account with a maximum yield of 4.35% APY. However, this requires a balance of at least $150,000. The rates for lower balances are not competitive.
Membership is open to those who live, work, attend school, or worship in one of these four Idaho counties: Bannock, Power, Caribou and Bear Lake. Please refer to their Membership Page for more details. Membership requires maintaining a minimum $5 balance in the Regular Share Savings Account.
Branches are located in the Idaho cities of Pocatello, Chubbuck, Soda Springs, Montpelier and American Falls. The credit union is federally insured by the NCUA (Charter # 8428). It has $89.8 million in assets and 10,222 members.
O-Qua Tangin Wann (anonymous) - #1,
Actually, Banking Guy, the minimum balance to get that 4.28% (4.35% APY) rate for the Money Market Account is:
...wait for it
$150,001.
You were off by a whopping $1.00.
Can you imagine someone depositing $150,000 in this account not realizing one needs $150,001 to get the higher rate? How upset would they be that they lost all that interest for the month?
I wonder if then you would call the credit union and complain. Would the bank give you the extra interest even though you were short just one dollar?
OK, seriously, did anyone call to see if a bank visit is absolutely required to open this jumbo MMA? If one had $150,001 cash, this 4.35% APY would be a nice rate...especially if and when AARP lowers everyone to 3.50% and if Alliant CU lowers their 4% rate down to 3.5%.
Right now, if the rate stayed as is between Alliant CU and Advantage Plus CU, one would only make about $44 per month more in interest at Advantage Plus on that $150,001 balance. Of course if Alliant lowers their rate to 3.5%, the difference would be $106 per month.
~O-Qua Tangin Wann
Banking Guy (anonymous) - #2,
Good catch about the extra dollar. That would be very frustrating for someone with exactly $150K.
Remember, it's a credit union with a limited field of membership (primarily limited to those in certain areas of Idaho). Unlike Alliant, they don't seem to have an easy way to qualify for membership. So the branch-visit may be a moot point.
O-Qua Tangin Wann (anonymous) - #3,
You are absolutely correct, as usual, Banking Guy.
Regarding membership, though: They said if one worships in those counties in Idaho, one would qualify for membership. It has been my experience that Credit Unions are generally not very strict when it comes to proving membership eligibility. If one went in and just said that they worship at a specific church in that area, I'd guess this credit union would simply accept your word. (How could they even prove you did or did not worship there?)
Yes, of course, having an out-of-state address might raise suspicion. But then again, what if one just said they spend a lot of time there in Idaho and worship there every time they come into town?
I know...I am grasping at straws here. Sounding a bit desperate.
Right now, a $44 per month difference in interest between Alliant & Advantage Plus is not worth it. But again, if Alliant drops to 3.5% or lower, I just was mentioning all this as something to think about.
~O-Qua Tangin Wann
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