Would you jump through hoops?

[skives]

Two local Credit Unions are offering 4% interest up to $15,000 balance on their checking account if you do four things each month. Would you jump through these four hoops to get 4% interest on a checking account? No interest on balances above $15,000 at either Credit Union.

First Credit Union


1. Deposit $500 into account (regular deposit or direct deposit)

2. Login into online/mobile banking one times

3. Make 15 debt card transactions

4. Sign up for eStatements


Second Credit Union


1. Direct deposit $100 into account

2. Login into online/mobile banking four times

3. Make 10 debt card transactions

4. Sign up for eStatements

[james.hendrickson]

Depends on what the debit card transactions are.

[skives]

Depends on what the debit card transactions are.

Any purchase made with the debt card that settles within the month.

[james.hendrickson]

So the maximum marginal value of the interest on an annualized basis is what, .04 x 10000 to .04 X15000, or $400 to $600.

A standard account will give you 2%, so on the same amount a standard account would give you $200 to $300.

So, to get the extra $200 or $300 bucks, you'd need to deposit the full amount, use their debit card 10 or so times, and learn their interface. That is what, 4 or 5 hours worth of time? For me personally, it probably wouldn't be worth it, I'd rather invest the time in learning a new skill or researching an investment opportunity.

[disneysteve]

Nope. Not a chance. Don’t use a debit card and don’t ever plan to. We’re rewards credit cards all the way.

[skives]

Nope. Not a chance. Don’t use a debit card and don’t ever plan to. We’re rewards credit cards all the way.

We use reward credit cards too but I was thinking just use it for gas to meet the requirements. 4% is more than double my current online savings rate.

[disneysteve]

We use reward credit cards too but I was thinking just use it for gas to meet the requirements.

Do you get gas 10 or 15 times a month?

[james.hendrickson]

Do you get gas 10 or 15 times a month?

Yes, I was thinking you'd have to go a dollar store and buy like 15 separate items, then have them all rung up separately.

[disneysteve]

So the maximum marginal value of the interest on an annualized basis is what, .04 x 10000 to .04 X15000, or $400 to $600.

A standard account will give you 2%, so on the same amount a standard account would give you $200 to $300.

Plus you're losing the rewards from your credit card by using their debit card instead. That's at least 1% and often more. We routinely take advantage of the 5% deals on our Discover and Chase cards.

So I'd be jumping through all of those hoops for less than $300/year. Personally, not worth my time and effort but your opinion may vary. It's not a bad way to make a couple hundred dollars if you don't mind the hoops.

[skives]

Do you get gas 10 or 15 times a month?

Usually get gas about 8 times per month but I could break up each fill up into 2 transactions. Right now we only get about $300 in credit card rewards a year.

[MonkeyMama]

Nope. Not a chance. Don’t use a debit card and don’t ever plan to. We’re rewards credit cards all the way.

Same. Don't use debit cards (& won't use debit cards), and it would also be hard to come up with 15 transactions. Regardless, just way too many different things to keep track of.
Also, I have usually been able to find similar deals without the hoops.

If these things are more in line with how you bank anyway, then I can see why it would be more appealing.

[mumof2]

This is funny here in Australia we use debit card for everything...checks just arent a thing here and they take 3 days to clear in a bank..so not popular...paychecks just go into the bank and most people here don't use CC to buy everything as we dont get the discounts like you guys with CC...

[skives]

I should say this account will hold our emergency fund.

[kork13]

I should say this account will hold our emergency fund.

That immediately disqualifies the idea in my book... No way in the world that I would want to be making constant charges against my emergency fund. I'm off the mindset that an emergency fund should sit alone & almost ignored in the background, ready for use if needed, but generally untouched. Making 15 transactions a month against your EF is just asking for trouble.

[disneysteve]

I should say this account will hold our emergency fund.

If you consider it your EF, why would you be using it to put gas in your car? Or would you just replace the money since you need to deposit either $100 or $500 each month?

You asked "Would you jump through hoops?" My answer remains no, I wouldn't. That doesn't mean you shouldn't. I just believe in keeping things simple and all of the rules and regulations here are unnecessarily complex for a very minimal gain. An extra $200 or $300/year would have absolutely zero impact on our finances. If I really needed a few extra dollars, I could easily pick up an extra 4-hour shift at work and make more than that and be done.