Security State bank -6.01%

[ealimbuyao]

..offers 6.01% interest for checking account up to $25,000.

As long as:

-you maintain 10 debit card transactions/month
-1 direct deposit/month or 1 autopayment/month from your account
- no paper statements

Is this a good deal. I am thinking of moving my emergency fund from FNBO (one account under my husband and another under me - total of $50K).

Thanks.

[poundwise]

Where is this bank located? Do you have a link?

There are multiple banks called "Security State Bank" in the US.

[ealimbuyao]

Where is this bank located? Do you have a link?

There are multiple banks called "Security State Bank" in the US.

Sorry, forgot that.

Security State Bank
Wadley Street
Midland, Texas

Security State Bank

[sweeps]

Yes, 6% for a checking account is great, but there's a lot of other things you'll have to check out.
1. Is the bank legit? Is it an FDIC member?
2. Is the rate permanent or is it a bait-and-switch. Some banks get you to switch your direct deposit and then pull the rug out from under you.
3. What are the fees like at the bank? 6% interest is good, but if how you bank will produce a lot of fees, it's not worth it.
4. Does it offer online bill pay (if you have a need for it)?
There's probably more...

Personally the 10 debit transaction requirement would ruin it for me. I use credit cards and refuse to use debit cards. But it may be a non-issue for you.

[jlvkfyang]

We have a brick and mortar bank (credit union) here called NuUnion Credit Union that has a 6% checking account up to 25k, with similar requirements. If it is a real brick and mortar bank then go for it. If you want, you can open an account with NuUnion. I can vouch for it. It bought a local credit union, and now has like 5 branches in the Lansing, MI area.

http://www.nuunion.org/

Requirements:
* Receive E-Statements (e-mail address required)
* One (1) Direct Deposit or Direct Payment (ACH)
* Fifteen (15) Debit Card Purchases (posted to account)

I haven't taken advantage of it because I don't post 15 debit card transactions in a month. Maybe I will buy 15 dollar store items each month just to do it. HAHA.

[ealimbuyao]

Yup, this is a local brick and mortar bank. I just don't know if this is a "bait" to attract more clients. And, I have not used a debit card in my life...read so much bad things attached to it.

I'll wait and see.

Thanks for the responses.

[cptacek]

My bank, Equity Bank, is doing the same thing. Banks are probably hurting because their customers are jumping to online savings accounts, and this will lure people back. Good for them to get customers back, good for me to get 6%.

[sstarch3]

I currently only have a non-interst checking account and I'm interested in moving to nuunion after reading about there account and it's 6.01% interest and there repaying you for ATM fees.

I don't live in the state that nuunion is located in and all of there paper work is online and I can meet there account requirements.

Am I missing anything or would it be a much better idea to move the bulk of my money to a nuunion account?

Thank you

[starfishy]

My local credit union is now offering the exact same account. I'm tempted except that the debit card transactions requirement would probably cause me to spend more money in a month than I would originally plan on. And, if the required amount of debit transactions are not met, the monthly interest rate drops to .10%! I wonder if I would be deligent enough every month to make sure I met all the requirements?

I also noticed that at my bank - for any amount of money over $25,000, the interest rate drops to 1.01%. So, check this out for the other offers and don't keep more than $25K in the account or you won't receive the full interest on part of your money.

I would love to hear people's experiences with this kind of account if anyone signs up.

[sstarch3]

the other offer is the same any money over 25k would have a very low interest rate. I will not have 25k in there anytime soon

I end up using my debt card about 20 times a month, I pay for everything with it.

[cptacek]

I set mine up to pay all the bills. I have two direct deposits, one automatic mortgage payment, three credit card payments (two of them have 0% interest, so I keep a balance on them, and will pay them off before the interest starts...the other one I pay off every month), phone bill, automatic investment, automatic student loan payment, gas bill, electric bill, and car insurance. This is only my "bill" account, and for other spending money, I use a different account.