About Ken Tumin

Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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Relationship Rates on Your CDs - Worthwhile or Too Much Hassle?

Some banks and credit unions offer much higher CD rates if the member qualifies for a certain relationship level. Meeting this relationship requirement isn't always easy as we learned with Digital Credit Union. Nevertheless, this is one way savers can increase their deposit rates when every little bit helps in this awful interest rate environment.

For special CD rates at banks, it's often common for the bank to require a checking account to qualify for the CD special. This is sometimes an easy requirement if the checking account can be maintained with a small balance without monthly maintenance fees. However, there are cases in which an institution requires an active checking account. One example is at Connexus Credit Union.

Sometimes all you have to do is to meet the relationship requirement at the time that you open the CD. After that, you don't have to maintain the relationship. Your CD rates will last until maturity. However, this isn't always true. There are cases where a member can lose the rate bonus during the term of the CD if the member's relationship ends. One example is at AmeriCU Credit Union.

That brings me to today's poll question: Do you have CDs that required you to meet some relationship requirement?

If you have opened CDs that had relationship requirements, do you have any tips? Have any banks or credit unions removed a relationship rate from you on an active CD? Or have you been able to get a relationship rate without fully meeting the requirements?

Related Pages: CD rates

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  |     |   Comment #1
what is the hassle with relationship checking at Digital Credit Union?
  |     |   Comment #2
Digital offers .25% more on its CDs to members who have relationship checking. I passed on that because shifting a monthly direct deposit from one checking account to another usually requires changing all of the billpayer entries that are automatically paid from that account. Too much hassle.
  |     |   Comment #3
Otherwise with Digital CU, you can purchase "Relationship Checking" relationship for $10 a month for at least 12 months.

It's easy to figure out and I think it's well worth the $120 bucks if you plan to open large CDs.


  |     |   Comment #4
That relationship CD deal at DCU has always annoyed me.  My company is a member but I can't be bothered jumping through all those hoops to get the extra .25%.  So I do business elsewhere.
  |     |   Comment #5
I opened an IRA CD at Regions that required a free non-active checking account with a minimum balance of $50.00.  That was great until they changed the rules that now require a minimum $1,500 minmum balance to avoid fees.  So my choices were to add funds to the account or close the CD with a penalty and move it somewhere else with a lower rate.  I added the funds but of course will close the account the day the CD matures.  I don't plan on opening another CD with "terms" because they are subject to change.         
  |     |   Comment #6
Depends,.....but at Visions FCU the relationship rate it is not worth the hassle for me to capture .25% benefit.  Too complex, difficult to understand requirements (1 from column A and 1 from column b), marginal customer service, fees and penalties if you don't meet the requirement on a month to month bases. As example if your loan balance decrease to less than 10K  your CD interest rate can decreae to the non relationship rate unless you meet other requirements in the column.

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