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Rate Increase! UICCU's Reward Checking Yield To Rise From 4% To 4.25%

Tuesday, February 22, 2011 - 12:09 PMUniversity of Iowa Community Credit Union - Details
It's nice to see a rate increase for a change (and without a balance cap reduction). A reader just emailed me this news:
Amazing news from the monthly newsletter:

"Good news for Rewards Checking account holders. While many financial institutions lower the rates they pay on their interest-bearing checking accounts, we will do the opposite. Effective March 1, the premium rate on Rewards Checking will rise to 4.25% APY on balances up to $25,000."



1
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
1. Tuesday, February 22, 2011 - 12:19 PM
Nice move, wish it became a trend.
2
51hh51hh1,462 posts since
Jan 16, 2010
Rep Points: 6,352
2. Tuesday, February 22, 2011 - 2:06 PM
Slap me, I must be dreaming...
1
tightwadtightwad27 posts since
Jun 7, 2010
Rep Points: 856
3. Wednesday, February 23, 2011 - 4:29 AM
wow, maybe i should move there.
1
ninissniniss59 posts since
Sep 22, 2010
Rep Points: 153
4. Saturday, July 30, 2011 - 9:50 AM
Their (UICCU) rate increase news on 2/22/11:

"Good news for Rewards Checking account holders. While many financial institutions lower the rates they pay on their interest-bearing checking accounts, we will do the opposite. Effective March 1, the premium rate on Rewards Checking will rise to 4.25% APY on balances up to $25,000."

Guess they decided it was the wrong ("opposite") move, now it is backing down (going with the "flow"):D:

4% --> 4.25% (2/11) --> 3.75% (8/11) --> ?? 
2
51hh51hh1,462 posts since
Jan 16, 2010
Rep Points: 6,352
5. Saturday, July 30, 2011 - 12:48 PM
@51hh It closely parallels the rate shuffle of Northstar Bank in Texas, which happened around the same time frame.   Northstar:  3.51% 50K -> 4.01% 30K effective 3/17/11  --> 3.01% 30K effective 7/20/11

Most institutions have a lengthy approval process for changing rates.  My guess is that some time in late December UICC and N* anticipated improved economic conditions in 2011 and decided to beat competitors to the punch with the Reward Checking account rate increases.  When the improvements didn't materialize, they reversed course to match the economic outlook.  UICCU's rate increase lasted a couple of months longer than Northstar's. 

3.75% is still a good rate, though and so is the $25K cap.

 
2
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
6. Sunday, July 31, 2011 - 10:04 AM
You are correct pearl.

If the lack of leadership in Washington leads to our country's credit rating dropping from a AAA rating, and the stock markets take a dive, there could be a flight to quality. I'm not sure any financial institution wants to be leading the way in terms of yield. You may take on more deposits than you bargain for...or much more than you can lend out.
2
Yanks1b23Yanks1b233 posts since
Jul 31, 2011
Rep Points: 8
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