Update 3/1/11: The top rate has fallen to 2.02% APY.
NARFE Premier Federal Credit Union is offering a high-yield reward checking account with the following rates and features if certain monthly requirements are met. Rates are as of 3/2/2011:
- 2.02% APY on balances up to $25,000
- 0.75% APY on portion of balance over $25,000
- 0.15% base rate if requirements are not met
- Nationwide ATM fee refunds up to $10 per cycle
Monthly requirements include:
- 12 Visa check card purchases
- One direct deposit or auto debit/bill pay from your account
- Enroll in E-statements
Other features of this account include:
- No minimum balance requirement
- No monthly fees
Membership is open to all active and retired federal employees. You can also be eligible via select employee groups and via family. Please refer to the credit union's membership eligibility page for the full details.
The credit union is located in Alexandria, Virginia. The credit union is also part of the Share Service Center Network.
The credit union's ratings for safety and soundness are a little above average: 4 stars (excellent) at BauerFinancial (based on 12/31/09 data) and 3 stars (performing) at Bankrate.com (based on 9/30/09 data). The credit union is federally insured by the NCUA (Charter # 233).
Other High-Yield Reward Checking Accounts
There are a few nationwide reward checking accounts with a 4% APY. However, if you're eligible for one that's available locally or through a select employees group, you may have better luck with that one. The ones available nationwide will likely attract more rate chasers and fewer of the average Joes. The average Joes will make more purchases with their debit cards and will maintain smaller balances which help the institution pay the high interest rates.
Refer to the reward checking section of DepositAccounts.com to find reward checking accounts in your state or that are available nationwide.
- 03/01/11: 2.02% APY up to $25K
- 03/29/10: 4.01% APY up to $25K; 0.75% over; 0.15% base