Class Act FCU RCA (3%APY, $20K) To (4%APY, $5K) Effective 10/1/12

The rate on the credit union's Honors Checking increased but the cap dropped significantly. 

RCA requirements (including total spending requirement of $200 or more per month) are unchanged. 

There was NO notification to accountholders other than a website update this morning.    Not a very "honor"-able way to conduct business, especially in light of the magnitude of the change.  

This was definitely an unpleasant surprise.  A trend along these lines (steep drops in caps) would probably result in a large drop in participation rates in RCAs. 

If one had only $5k to work with, then 4% at this insititution is not bad; otherwise IMO it's hardly worth $16.67/month to do 10 transactions (especially when the total spending must be at least $200) as there are better opportunities available. 

BTW Ken, DA shows the 3%/$20k (just in case you want to update ahead of the effective date of 10/1).