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History Behind The Base Rate Of Reward Checking Accounts

Thursday, October 28, 2010 - 7:33 PM
Have you ever wondered why the base rates of rewards checking account are never zero percent? The base rate is what you earn if you don't meet the monthly requirements. The Feds almost ruled that the reward checking account are illegal due to a zero percent base rate. This article at has an interesting overview about how the company that created reward checking, BancVue and its CEO, Gabriel Krajicek, struggled to resolve this so reward checking would comply with the regulations.
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
1. Friday, October 29, 2010 - 1:59 PM
... And the rest is history:D

Or:  And now you'ver heard the rest of the story.
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
2. Friday, October 29, 2010 - 5:55 PM
Erie Geneal Electric Credit Union has a 0% rate for over $25,000

Perhaps the regs don't apply to credit unions?
pdxmalepdxmale91 posts since
Jul 11, 2010
Rep Points: 271
3. Saturday, October 30, 2010 - 8:30 AM
Lake Michigan CU also pays 0% on over cap balances.
tightwadtightwad27 posts since
Jun 7, 2010
Rep Points: 856
4. Saturday, October 30, 2010 - 12:51 PM
"the Truth in Savings Act says you can't stop paying interest to a depositor for a lack of account activity".  Maybe it's different for CUs.  However, I think that not paying interest on over balances is different from not paying interest because of lack of activity.  You don't earn interest on over cap balances regardless of whether you meet the requirements or not.  It's just tiered rate.
mariafaltermariafalter57 posts since
Jun 6, 2010
Rep Points: 222