New Generations FCU is offering a reward checking account called New Generations High-Yield Checking. It pays 2.15% APY on balances up to $50,000 (1.90% for above) if the following monthly requirements are met: 1) 15 debit card transactions, 2) one direct deposit or automatic debit transaction, and 3) receive electronic statements. If these are not met, the rate falls to 0.05%. There are no monthly fees or minimum balance requirements.
One thing to note about this account is that there's no mention of ATM fee refunds. Most reward checking accounts offer automatic refunds of ATM fees when you use other banks' ATMs (if the requirements are met). This might be good for those who are only interested in the high yield and don't care ATMs. The credit union can spend money on paying high interest rather than ATM fees. However, free ATMs may attract people who don't plan to keep large balances and will be more likely to have overdrafts. Having more of these people may allow a financial institution to be able to keep the rate high.
Another thing to note about this reward checking account is that it requires 15 debit card transactions per month. The average for reward checking is 10. At least you get a larger than average balance cap ($50K rather than $25K) and a respectable rate for balances above the cap (3.01% APY). That 3% is now about the same as what you get on many online savings accounts.
Membership is open to those who live, work, worship, volunteer or go to school in the City of Richmond. You can also be eligible to join via Select Employer Groups. Please refer to their Membership Eligibility page for more details. Membership requires a $2 fee and a minimum deposit of $5 in the share savings account.
The credit union has 6 branches located in Richmond, VA. It's federally insured by the NCUA (Charter # 6878). The credit union has $57.9 million in assets and 18,595 members.
Other High Yield Reward Checking Accounts
For other reward checking accounts and for more information on these accounts, please refer to the following posts:
- reward checking overview
- reward checking accounts available nationwide
- reward checking accounts around the nation
09/30/09: 2.15% APY up to $50K; 1.90% APY over $50K
08/01/09: 2.20% APY up to $50K; 1.95% APY over $50K
06/30/09: 2.50% APY up to $50K; 2.25% APY over $50K
04/30/09: 2.75% APY up to $50K; 2.51% APY over $50K
03/26/09: 3.00% APY up to $50K; 2.76% APY over $50K
02/27/09: 3.25% APY up to $50K
01/30/09: 3.75% APY up to $50K; 3.01% APY over $50K (rates listed on home page)
11/30/08: 4.10% APY
04/01/08: 5.01% APY
03/21/08: 6.01% APY