About a month ago, Public Service Credit Union (PSCU) introduced its Reverse Tier Savings Account, which earns higher APYs on lower balances. While there are no minimum balance or minimum opening deposit requirements, the first $5k deposited must be new money, which is defined as “funds not on deposit at PSCU at the time the account is opened.”
The dividend rate tiers are structured as follows:
3.25% - Up to $2,000
1.49% - $2,000.01 - $5,000
0.75% - $5,000.01 - $10,000
0.40% - $10,000.01- $50,000
0.30% - $50,000.01+
Blended APYs can be determined using PSCU’s Reverse Tier Savings Calculator. The following blended APYs assume the dollar amount will be held in the account for one year. With the top nationally available savings accounts currently earning 1.50% APY, PSCU’s Reverse Tier Savings Accounts loses its edge at about the $10k level.
$5k balance will earn a blended rate of 2.20% APY
$10k balance will earn a blended rate of 1.47% APY
$12k balance will earn a blended rate of 1.30% APY
$15k balance will earn a blended rate of 1.12% APY
$20k balance will earn a blended rate of 0.94% APY
$25k balance will earn a blended rate of 0.83% APY
Headquartered in Denver, Colorado, Public Service Credit Union’s field of membership (FOM) is primarily residency based, with individuals who live or work in Colorado eligible to join.
Employees and individuals affiliated with a PSCU Partner Company (PC) or Select Employee Group (SEG) qualify for membership.
In addition, family members of current PSCU members are also eligible.
Note: PSCU’s Personal Membership page is rather vague and doesn’t provide much detail, such a list of the PCs or SEGs. I was able to confirm the residency portion of the FOM with CSR, but CSR wasn’t able to provide more specific information about the PCs, SEGs, or what constitutes “family members.”
Joining PSCU can be done online, or done in person at any of 29 Colorado branches located in Arvada, Aurora (3), Brighton, Broomfield, Centennial, Colorado Springs, Denver (7), Fort Collins (4), Greeley, Highlands Ranch, Lakewood, Littleton (2), Lone Tree, Loveland, Parker, Thornton, and Windsor.
Credit Union Overview
Public Service Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.94% (excellent) based on September 30, 2017 data. In the past year, PSCU has increased its total non-brokered deposits by $269.84 million, an excellent annual growth rate of 16.76%. Please refer to our financial overview of Public Service Credit Union (NCUA Charter # 64778) for more details.
Established in 1938, Public Service Credit Union is currently Colorado’s third largest credit union, with more than 225,300 members and assets in excess of $2.3 billion. While the Credit Union’s original FOM was public service employees, it has been expanded over the years to include all Colorado residents. PSCU is one of 13 credit unions that at least tripled their auto loans portfolios over a four-year period, from the end of 2012 to the end of 2016. PSCU’s total auto loans grew from $331.5 million in 2012 to $1.1 billion by December 31, 2016.
How the Reverse Tier Savings Account Compares
Given the unique structure and limitations of the Reverse Tier Savings Account, comparing it to other traditional savings accounts doesn’t make much sense. Patelco Credit Union’s Money Market Select Account is the only other account I’m familiar with that would be an apples-to-apples comparison.The following shows the blended APYs for specific balance levels.
The above rates are accurate as of 12/18/2017.
To find the top Savings and Money Market rates, both nationwide and state specific, please refer to our Savings Account rates table and Money Market Account rates table. To find higher rates, raise the deposit amount at the top of the tables.