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Bear Paw Credit Union RCA (2.28%APY, $20K)

Monday, July 7, 2014 - 4:23 PMBear Paw Credit Union - Details
This Montana credit union has a health rating of A on DA.   The details of the Checking Rewards account are not included on the credit union's website. 

The RCA account is not included in the RCA tables, although the DA home page for the credit union shows a 2.28% APY checking account with an unlimited cap. 

Nonetheless, a very helpful CSR provided details on the RCA requirements:
- 1 direct deposit of any amount (ACH is fine)
- at least 15 signature-based (credit) transactions, any amount
- enroll in E-statements

If the requirements are met, balances above $20K earn 1.21%APY (not 2.28%APY) on an unlimited deposit amount. 

Details on eligibility for membership are available here and appear to be very broad,  although the credit union could not be considered as "open to everyone". 

Note to Ken:  would it be possible to work some magic ;) inside DA so the account is recognized as an RCA?
pearlbrownpearlbrown1,474 posts since
Nov 2, 2010
Rep Points: 6,406
1. Monday, July 7, 2014 - 5:05 PM
The (relatively) high second interest tier presents an interesting possibility.  In playing with the numbers, someone who met the monthly requirements and deposited $100K into this RCA would earn a rate of 2.25% on the first $20K and a rate of 1.2% on the next $80K for a combined blended rate of 1.41%.  

Are there better alternatives for this high deposit amount?

According to the DA tables, a the best money market rate in the country for a $100K deposit is 1.31%APY guaranteed until December 2014 (see Ken's blog post of 6/10/14 for details), but it is limited to Texas residents. 

Reviewing the DA personal checking account tables, EverBank's 1.40% APY Yield Pledge Checking 6-month intro rate (see Ken's blog post of 6/3/14 for details), applies up to $100K but the rate is available only to new customers.   Note also that EverBank's 1.4%APY money market mentioned in that blog post applies only to a maximum of $50K.   

The DA personal savings tables identify several institutions which offer APYs better than 1.41% on deposits of $100K, but all are credit unions with what appear to be very narrow fields of membership.

So, for someone who keeps a high balance in their accounts, this RCA account seems to compare favorably with other alternatives which offer ready access to your funds (ie;  personal checking accounts, money markets, no CDs with EWPs).   Of course, there is always the risk that although the 2.25% rate / (2.28%APY) and 1.2% secondary tier have remained unchanged since at least September of 2012, the RCA rates can change at any time.
pearlbrownpearlbrown1,474 posts since
Nov 2, 2010
Rep Points: 6,406