1.26% Savings Rate (Share Account)

Recently opened an account here. My mother is a member which was my "in" but I asked the teller and she said they take customers words for it so if you were to join and say you worked for apco or one of the other groups, they wouldnt question you over it.

The share account pays interest quarterly which is unusual.

Im not clear on how long their rate has been 1.26% or how long it will continue.

But, since capone has taken over ING, I began seriously looking for a better place for my 6 figure account and APCO was the best i could find. I just hope it continues.

I guess they have a free checking account that pays interest too.

But, I maintain my ING account for my checking for now as well as a small savings there. I had intended to switch my checking to Ally but their format is not as good. And you cant tell from your account any future trransfers.

Hopefully, I will get off my duff and invest most of my money rather than letting it sit at such low rates.

I did recently buy shares in APCOs parent, Southern Company. Nice dividend yield at about 4.5% and a terrific long term track record of total returns.  My first utility. Considering buying others because a number of them also have good long term track records and good yields.

 

In the past, I took much more risk as an investor but over the last 7-8 years, Ive had a number of situations work out via buyouts mergers or sales and I have not been able to reinvest all the proceeds. So the cash sits in savings accounts.

Thats got to change.

 

My goal for SO is at least a 10% total return but even if I just earn the dividend and no capital gains over the long term, thats better than a savings account or a CD.

 

And I set my account up to reinvest the dividends since I dont need the cash.

Ya think ?

 

LOL

I walked in a branch. I suspect they dont get many applications by mail.

I got the distinct impression from the teller that they do NOT, as policy, question members, she said their policy was to take your word for it.

But even if one did lie, I dont see how it could come back to bite you in the ass. I mean, worst case would be they close your account. But I cant imagine that happening.

But, if they got dozens of applications from out of state for 6 figure accounts, who knows, their policy might change.

I do know that a number of their employee groups are VERY small. Obviously, Alabama Power is not but the one my mother belongs to, has, at most, a dozen employees and possibly only 2-3. The largest would be Southern Company which has over 26,000 employees over 4 states.

Which suggests that pretty much any "employer" who asks can get their company qualified.

 

Companies and Groups Served By APCO Employees Credit Union

Alabama Power Company Southern Company Services Southern Nuclear Southern Linc Mirant Corporation ACE Industries ADS Security Aerotek Affordable Security and Protection Air Engineers LLC Alabama Federation of Womens Clubs Alabama Outpatient Surgery Center Alabaster Water Board American Pipe & Supply Anchor Packaging Co Angel & Lee Asplundh Tree Expert Company Auto Electric & Carburetor Balch Bingham Law Firm BancTec Systems Bayside Surety Brokerage BCP Technical Services Beacon Hope Church of God Bessemer Bar Association Bethel Old School Baptist Bevill State Community College Birmingham Baptist Minister Conference Birmingham Pain Center Birmingham Racing Commission Birmingham Transit Authority Birmingham Water Works B L Harbert International Boatright Railroad Products Brewster Road Alliance Church Cassady & Self Glass CB&A Project Management Central Fire Protection Centralite Systems CFast Chamber of Commerce of West AL Cheney Lime & Cement Co Chesnut Ridge HOA Chickasaw Civic Theatre Chilton Water Authority Christopher Baker, DMD Church of the Living Waters CIE Wire & Cable Inc Citadel Broadcasting City of Adamsville City of Alabaster City of Bessemer City of Brighton City of Dora City of Fairfield City of Gardendale City of Graysville City of Homewood City of Hoover City of Hueytown City of Leeds City of Lipscomb City of Midfield City of Mountain Brook City of Pelham City of Pleasant Grove City of Spanish Fort City of Sumiton City of Tarrant City of Trussville Cloverdale Baptist - Dothan Consolidated Electrical Contractors Craft Electric Co. CRH North America, Inc. - Clanton Cross Roads Church of God Crowne Partners, Inc. Daily Access Concepts, Inc. DHR, Jasper Diversified Supply Inc. Docupak Doozer Software, Inc. Dothan Community Church - Dothan Drummond, Inc. Eagle Point HOA Ellison Auto Sales Enercon Services First Baptist Church of Birmingham First Church of God in Christ Fontaine Fifth Wheel G & K Services Giles Cooling & Heating Government Finance Officers Assoc Harris Insurance, Inc Harry Jeffcoat & Associates Hill & Associates - Jasper HRH Metals Hubbard Systems Infinity Insurance Infinity Insurance-Independent Agents Intermark Group Jasper Electric Motors Inc.

Jasper Water Works Jemison Basket Jones-McLeod Kid One Transport Krispy Kreme - Mobile Lake Martin HOA Lee Rodgers Tire Company Lowe's (Trussville) Magnolia Springs Baptist Marketron McBee Corporation McLeod Software Metropolitan Development Board Mobile Register National Coal of Alabama Inc New Covenant Printing Paymaster, Inc. PERC Engineers Pinnacle Data Systems Powell Scales Precision Electric Coil Preferred Title Presley, Burton & Collier LLC Pricewaterhouse Coopers Process Specialties Inc Qualico Steel Co Inc Ray Press Red Ridge Methodist Church Reed Energy Rehab South Research Solvent & Chemicals Inc Revere Control Systems Inc J.H. Rich Company Rocky Ridge Fire Department Rocky Ridge Cumberland Presbyterian Saddle Lake Farms Assoc SafeHouse Saginaw Pipe Santa Fe Express Save-A-Life East Shades Mountain Baptist Church Sherlock, Smith & Adams Sirius Technical Services Smith Electric & Associates Source Medical Solutions South Shelby Chamber Southeastern Anodizing Company Southeastern Bible College Southern Woodsmith Inc Spain Rehabilitation Women's Comm SPOC Automation Inc Spradling Originals Springville Elementary School Spectrum Environmental Services St Stephen AME Church Standard Heating & Air Stillwaters Fire & Rescue Stone & Sons Electrical Contractors Stress Crete Inc Structural Technics Inc Substations Service Co Sumrall Seats, Inc Sunbelt Paper & Packaging Sungard Business Systems 2AB, Inc. Talladega Springs Tabernacle Temple of Hope Baptist Church The E Group The Edwards Agency Inc Trinity Medical Auxiliary Trussville Area Chamber Trussville Fire & Rescue Trussville Motors Union Volunteer Fire District United Roofing Mfg Co Inc Universal Resources Urgent Care Northwest Valley of Birmingham Valleydale Church Vann Valley Assembly of God Vestavia Hills Historical Society Voight-Abernathy Co Inc Vulcan Threaded Products Walker County Commission Walker County Dept of HR Walter Energy Inc Wave Transit System Webb Payroll Service Women's Exchange Yale Carolinas Inc

I got an alert that APCO had reduced their CD rates so I called to ask if they knew anything about the savings rate possibly being reduced. They did not.

 

But, I did find out that they do not have current rates on savings accounts. Every quarter the board meets and declares their rate for the prior quarter. She said its been 1.26% for a year or so.

 

So, really, I could find out shortly after 3/31 that the rate I got for the quarter might be less than they paid in the past.

Hopefully not but this is the only institution that Ive ever heard of that pays quarterly and makes the rate retroactive to the prior quarter.

 

I guess its reasonably to assume the rate might drop but if it does,its also reasonable to assume that the rate remains higher than Ally or ING.

 

Yeah, but their history of having a high rate suggests the rate cut, if any, will not be dramatic.

 

Im crossing my fingers that there will be no cut but if there is, hopefully only to 1.10-1.15.

 

But, even if its 1.00, thats better than most alternatives.

 

If the rate ends up being .75% or something, I would file a BBB complaint and complain heavily.

 

But, I dont expect that.

It appears as if I only got 1.00% for the quarter just ended rather than the 1.26% they paid last quarter.

I had hoped this would not be the case but it appears it is. No way to see my statement online because Im set up for statements by mail.

Their front page website still shows the 1.26% as of 12/31/12.

I knew this was possible but had I known for sure they would drop them to 1.00%, I might have just kept the money at ING earning .85% (High tier checking rate)

The good news is the shares I bought it Southern Company are up about 7.5% in the last few months including the dividend I got. I had intended to reinvest the dividend but apparently I didnt do it in time because I got cash.

If only i had put ALL that money in SO shares. (LOL)

 

YTD Dividends	Annual Percent Yield	Dividend Rate	Prior-Year Dividends
$xxx.xx	1.00%	1.000%	$0.00

Their website now says 1.01%.

Share Account (minimum $25) Interest computed on the average daily balance and compounded quarterly. Rate paid as of 3-31-13.

1.01% APY

http://www.apcocu.org/rates/savings-rates/

 

 

The president commented on the rate cut in the newsletter....

 

 

 

While our dividend rate on share accounts is

 

lower than what we’ve all grown accustomed to

 

in past years, your Credit Union shines by

 

comparison to what other financial institutions

 

pay their depositors today. Although the Federal

 

Reserve has committed itself to keeping interest

 

rates near zero for the next year or two, you can

 

be confident in the fact that your Credit Union

 

works hard every day to see that our Members

 

get the highest and safest rate of return available

 

in today’s marketplace. And, as always, we

 

appreciate your business.

 

V. Merrill Mann, CCUE

 

President/CEO