TBA Credit Union (MI) Adds Cash Reward Checking, 5.00% APY
At the beginning of July, TBA Credit Union (TBACU) introduced a rewards checking account (RCA). The new Cash Reward Checking earns 5.00% APY on qualifying balances up to $10k. Interest is not paid on qualifying balances above $10k or on non-qualifying balances.
Qualifying Requirements
- At least 25 debit card transactions.
- At least four online or mobile banking logins.
- Deposit(s) totaling at least $1k through direct deposit or remote capture deposit (RCD).
- Enroll in eStatements.
Two of the qualifying requirements are noteworthy: 1) 25 debit card transactions is more than twice the typical requirement, and 2) this is the first time I’ve seen RCD listed as meeting a direct deposit requirement.
The Cash Reward Checking account has no monthly service fee, minimum balance requirement, or minimum opening deposit requirement. Not only are out-of-network ATM fees are not reimbursed, there is a $1 fee for using a non-CO-OP Network ATM.
Availability
Headquartered in Traverse City, Michigan, TBA Credit Union’s field of membership (FOM) has expanded to include anyone who lives, works, worships, or attends school anywhere in the State of Michigan.
Alumni of Northwestern Michigan College also qualify for membership, regardless of where they live.
Immediate family members of anyone eligible to join are also welcome to apply.
Joining TBACU and/or opening a Cash Reward Checking account can be done online, or at any of three Michigan branches, all of which are located in Traverse City.
Opened with a $15 deposit, a savings account establishes your membership
with TBA Credit Union and allows access to additional products and services.
Opening a Cash Reward Checking account can also be done by calling 231.946.7090. The Cash Reward Checking’s landing page has a “Contact Me” form.
Yes, please have a team member contact me about the Cash Reward Account.
Through its partnership with the Xtend Shared Branching Network, TBACU members have access to more than 250 shared branches in or around Michigan. TBACU also participates in the CO-OP ATM network, giving members “access to over 30,000 ATMs nationwide, including those located at most 7-11 convenience stores.”
Credit Union Overview
TBA Credit Union has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.44% (excellent) based on March 31, 2019 data. In the past year, TBACU has increased its total non-brokered deposits by $12.52 million, an excellent annual growth rate of 7.16%. Please refer to our financial overview of TBA Credit Union (NCUA Charter # 61795) for more details.
Founded in 1955 as the Traverse City Board of Education Employees Credit Union, TBA Credit Union is another Michigan credit union that’s expanded its FOM state-wide. The credit union rebranded twice: first in 1967 as the TBA Education Credit Union and then as TBA Credit Union in 2004. (FYI – TBA is an acronym for Traverse Bay Area, not “to-be-announced.”)
The eight original board members were all teachers in the Traverse City School System and each had four shares in the newly formed credit union. This quote from TBACU’s History page is truly indicative of a time long past.
In those early days, funds were kept in a cigar box. Those needing a loan
could take what they needed and leave an I.O.U. to be covered the next payday.
How Cash Reward Checking Compares
When compared to the High Yield Reward Checking Accounts tracked by DepositAccounts.com that are available in Michigan and have maximum qualifying balances of at least $10k, TBA Credit Union’s Cash Reward Checking APY currently ranks second.
The above rates are accurate as of 7/20/2019.
To look for the best Reward Checking Account rates, both nationwide and state specific, please refer to our High Yield Reward Checking Account Rates Table page.
If I had to guess how much they get from debit card transactions it would be maybe 2% max.
Fidelity pays me 2% on all transactions so you know they get a little more than that. But debit pays less than credit.
I think these banks & credit unions get sold on these deals and may look at it as cheaper than paying a $100-200-400 bonus for new accounts.
And maybe many people only carry an average balance of say $1000 and if they spend $800 a month, maybe the FI makes money overall?
Ive had RCAs with as many as 12 but never 25. My current ones only require 10 each.
I had some crazy demands from the banks in the past to fulfill such requirements and at the end the banks win. It is not profitable for the consumer when you are forced to spend more than you need and to keep counting the purchases, it becomes a chore and a nightmare.
You could make 25 one dollar billpays to some vendors who do not charge a fee. Or you can do as I do and knock them out at gas stations and the dollar store and every now and then a $1 online payment.
By contrast, my RCAs pay an excess return of $207.50 per year or $17.29 per month or 1.73 per transaction. (Heritage pays 3.33% on $25k and I have 2 of them, 10 transaction each)
With rates expected to decline next year, the value of RCAs increases. And I may open a 3rd one within the next few months.
Right now, I may be taking a 1-2 month breather from them to fund the 1% bonus deal at Goldman. But 3 months after the Goldman deal I may open another one somewhere if not sooner. (I also have 2 CDs maturing soon and am hoping I can get a 3.21% 30 month jumbo at Keesler on 8/26 if its still alive)
The lower rates go, the more sense it makes to have multiple RCAs.
I probably won't go over 3 but maybe 4 depending on how much lower rates go.
You don't worry RCA rates will move lower right along with everything else?
On 83.3 cents per transaction: Many debit card "vehicles" start with one dollar. Many RCAs set a lower limit (e.g., $5 per transaction) nowadays, which may be reasonable and fair for both sides. Doing $1 per transaction is a bit "cheap" and a bit gaming the system; but just me.
For me, very small transactions within the first 5 days of the month ARE normal shopping habits.
I don't see any reason to change if I have not gotten any slack from any of them.
If someone starts a $5 per purchase I will adjust or switch. Not at all worried about what might happen because NOTHING has happened in many years. Except one local CU cut their rate from 3% to 2% for everyone, not just me. I quit using it as soon as the rate when down. Thats been over a year ago.
Hehe. You point up the meaninglessness of such ambiguous parameters as FI's sometimes specify for these accounts, - which indicates they need not be taken seriously. If you're a bank or CU with an RCA and don't want accountholders doing tiny or small transaction amounts, then set an exact dollar minimum for each one to satisfy requirements. No judgments or interpretations of what "normal",
"primary", or "everyday" are then needed.
• Our Cash Reward account does require more debit transactions than most, however, this requirement is based on the average number of debit card transactions of our current members. In addition, there is no minimum purchase amount.
• TBACU opted to keep the costs lower by not offering out-of-network fee reimbursement. Members have access to over 30,000 fee free ATMs nationwide.
• The option of Remote Deposit Capture deposits qualifying for the minimum monthly deposit is in consideration of small business employees who don’t have the option for direct deposit.
We look forward to answering any questions you may have regarding our Cash Reward Account.
• The average number of debit card transactions is approximately 28
• The average dollar amount of debit card transactions is approximately $1,100.
• The average number of ACH deposit transactions is approximately 3 – 4 (depending on the number of pay periods in a month)
• The average dollar amount of ACH deposit transactions is approximately $3,500
Might that figure of "28" be the average AFTER your CU had instituted rewards checking (or any, in fact) programs that required 25-plus debitcard transactions per month? Or, would it be the average BEFORE such programs were instituted?
Hopefully you see the conundrum - is it real, or is it a "chicken and egg" type issue? Thanks in advance for your expected response.
seems to me you might just be digging for
proprietary information from a financial institution
for whatever gain
1) Regarding the 25 debitcard transactions, you specifically mention that "there is no minimum purchase amount" required for each. Does that mean that you are stating for the record that very small payments will completely satisfy that element of the monthly requirements, as long as there are at least 25?
2) Most of us on this forum are quite familiar with inter-bank ACH transactions. I'd hazard a guess that far fewer people are familiar with what you call a "Remote Capture Deposit" (RCD). So please tell us what this, what business entities it can be done between, what the fees are (if any), what the transmission limits are, etc.
2) Remote Deposit Capture (RDC) is a service that allows members to transmit and deposit checks into their checking account through use of our mobile app by taking a picture of the check using a compatible mobile device. There is no fee associated with this service. There are no limits for processing on the member end, however, there are limits and security measures in place that determine if the check can be immediately posted or needs staff review.
they got you by the _alls