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Unique Debit Card Requirement for Meadows Credit Union's Reward Checking


Meadows Credit Union

There are many better reward checking accounts, but I found the requirements of this reward checking account interesting. It's called High-Rate Rewards, and it's being offered by Meadows Credit Union in Illinois. What's unique is how they give customers two options to meet the debit card usage requirement. Below are the rates and requirements for the High-Tier Rate account (as of 11/23/2010):

  • 2.53% APY on balances up to $25,000
  • 0.25% APY on portion of balance over $25,000
  • 0.05% base rate if requirements are not met

Monthly requirements include:

  • Signature-based debit card transactions: 20 purchases OR $2,000 total
  • Direct Deposit or ACH credit or debit
  • eSubscription (including eStatements, eNotices & eTax Notices)

The Mid-Tier Rate account requires only 10 debit card purchases or $1,000 total. It has a lower rate of 2.02% APY. Both accounts have no monthly service charge.

I've been told that banks are not suppose to require a certain amount on debit card purchases. This may be a way that an institution can encourage higher dollar purchases without requiring it. Banks make around 1% from signature-based debit card purchases. So they have an incentive to encourage larger purchases instead of a higher number of purchases.

It's still fairly easy to get 3.00% for up to $25K on reward checking accounts nationwide. There are also many reward checking accounts in Illinois that offer over 3.00%. So this is not the best reward checking deal.

Membership is open to those who live or work in Dupage County or in parts of Cook, Kane and McHenry Counties. Please refer to the About MCU page for the full details.

Meadows Credit Union has an overall health score at of 3 out of 5 with a Texas Ratio of 22.33% (above average) based on June 2010 data. Please refer to our financial overview of Meadows Credit Union. The credit union is federally insured by the NCUA (Charter # 61639).

Other High-Yield Reward Checking Accounts

To find reward checking accounts in your state or to find those available nationwide, please refer to the reward checking section of

  Tags: Meadows Credit Union, reward checking account, checking account, Illinois

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