Opening A Rewards Checking Account With LMCU

I would give them a call. I have a reward checking with them as does several of my friends, but we opened our accounts at the branch. They are always very helpful and curteous.

FYI: Rate reduction for Lake Michigan Credit Union's reward checking account (Max Checking):

Today (09/05/2011) I was working my way through the application for LMCU. When the page came up to select the account being applied for, there was a note under Max Checking that read:

    *Rate change effective 10/1/11 to 3.0% APY.

 

I doubt that I'll complete the application now. The debit card requirements are really good here (need only 10/mo); and I was even willing to switch a direct deposit in order to meet that requirement. But, at 3%, it's not a better option to what I already have in a couple of places.

Another disappointment -- looks like nationally available 4% or better reward checking will soon be extinct...at least in this interest rate climate.

The (rate drop) is expected, with all 4% club members disappearing (or faded away) every day...

I can't say I was shocked to see the rate drop.

Just a few days ago, ViewPoint lowered the APY on their reward checking account (also from 4% down to 3). I got in that one last year just a short time before they started restricting it to Texas-only residents. My plan was to move over funds from that account to Lake Michigan's 4% one. No point now.

There's another credit union in Michigan I'll take a look at (Consumers Credit Union). The biggest drawback there is the $10k max that earns the top rate. I don't have a problem having a number of accounts -- except at some point it will become too much work to do all the debit card transactions each month.

I would expect Consumer Credit Union to drop rate soon due to people's quest for referral bonus.

Consumers Credit Union has posted a rate reduction also.

What is the new rate, Rosie?  I did not notice it yet.  Thanks.

Consumers Credit Union Rate Drop For Over $10K Effective 10/1/2011(Forum) - 9/1/2011 This notice will be found in the Consumers Rewards Checking Notification email: 4.09% APY paid on deposits up to $10,000.00 for Members meeting the qualification requirements. From now through September 30, 2011, for Members meeting the Rewards Check

As of today, LMCU is still prominently advertising the 4% interest rate on their Max Checking account on both their home page and main banking page...

It's only when you go to apply for a new account online that you see a notice as part of the application process saying the rate for the account is due to drop to 3.0% APY as of Oct. 1, 2011.

So are these higher yeild credit unions like consumers credit union legitimate?  Is the risk in the fluxuation of the APY?  Are there some stipulations about the APY being stable for any period of time (1 month, 6 months, etc.)?  I'm new to this and looking to invest a large sum of money at the highest rate possible.  I don't mind making and keeping track of some transactions and going online monthly as long as the rate is legit.

Any advice is helpful!

Thank you.

In answer to C H's questions.... LMCU and CCU are legitimate, federally insured credit unions with good track records... However, rarely are the APY's for rewards checking accounts guaranteed for any length of time, and they're not guaranteed at all in the case of LMCU and CCU. The rates can and do change at any time, and in general, have been on a downward trend the past two years and still dropping. The current rates for those two credit unions are legit, provided you meet the qualifying criteria each month for that account. Please note also that these accounts only provide those interest rates up to certain maximum deposit levels... Amounts over those levels earn very small and much lower rates.

what is the minimum anount for direct deposit  for LAKE MICHIGAN CREDIT UNION

There is no minimum deposit amount.    This thread has information which may answer other questions for you: 

http://www.depositaccounts.com/forum/thread/3463-lake-michigan-cu-4-rca-15k-cap-10-debit-card-transactions-easy-membership.html