United Heritage Credit Union has reopened its reward checking account, Heritage Checking. In February 2009, it suspended the opening of new accounts, but the program continued for existing members. At the time when new accounts were suspended, the rate was 5.01% APY on balances up to $25K, Since that time, the rate has fallen for existing members to 3.01% APY.
New Heritage Checking accounts can now be opened. However, the following changes have been made:
- Balance cap reduced from $25K to $10K
- Debit card usage requirements increased from 10 to 15 per month
- 3 account maximum
The other features appear to be the same as they were before. As listed in the checking rates table, existing accounts are grandfathered with the $25K balance cap.
For the rate history of this account and for membership information, please refer to my Heritage Checking review. United Heritage is open to residents in the Austin and Tyler metro areas.
Smaller balance caps and higher debit card usage requirements have been fairly common for many reward checking accounts that have been around for more than two years. A combination of factors have likely contributed to this including the low interest rate environment, a weak demand in loans and customers making smaller debit card purchases. With the new regulation on debit card interchange fees about to become law, we may see more institutions implement these reward checking changes.