Southwest Airlines Federal Credit Union is offering a good deal on a high-yield reward checking account. It's called LUV Reward Checking and it offers the following rates and features if certain monthly requirements are met (as of 6/11/2010):
- 4.00% APY on balances up to $25,000
- 1.00% APY on portion of balance over $25,000
- 0.10% base rate if requirements are not met
- Unlimited ATM fee refunds nationwide
Monthly requirements include:
- 15 debit card purchases
- 1 direct deposit or 1 automatic payment
- Receive eStatements
Other account features include:
- $30 minimum initial deposit
- No monthly service charge
- No minimum balance required
- Free online bill pay
The main issue with this credit union is its limited membership. It's primarily based on select employer groups, but it's more than just Southwest Airlines. According to the credit union's membership page, they have over 150 select employer groups that are eligible. You can also be eligible via immediate family. Membership requires a minimum balance of $50 in the share savings account.
Branches are located in Dallas, Houston and Phoenix.
The credit union's ratings for safety and soundness are above average: 5 stars (superior) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our Southwest Airlines FCU rates and reviews page). The credit union is federally insured by the NCUA (Charter # 22157).
Other High-Yield Reward Checking Accounts
It's harder these days to find reward checking accounts that pay at least 4% APY on balances up to $25K. There are only a few that are still available nationwide. Please refer to the reward checking section of DepositAccounts.com to see these and all nationwide and local reward checking accounts.