This blog contains some simple tips and advice from two regular guys. We're not accountants, financial advisors, or brokers, so follow, ignore, or discuss our ideas as you see fit.

Wednesday, August 6, 2008

Better rates for the vigilant.

Posted By Paul

I have some friends that are going to try a cool experiment.

Their plan is to take some money and open some new accounts at a credit union in order to take advantage of a program for new members. The deal is:

If you open a checking account you get 4.5% interest on up to $25000 for each month where you jump through certain hoops. The hoops include things like making at least 10 debit card transactions in a month, logging into the online banking at least once a month, and so on. If in any month you fail to jump through the hoops successfully you don't get the 4.5% interest for that month.

I generally shy away from these accounts since I just don't think I have the time to make sure that I jump through the hoops successfully month after month, but if you're up to giving it a try, I think it's a cool idea.

Of course not only do you have to make sure that you jump through the hoops each month, you also have to watch the account to make sure that the terms of the account haven't changed. If the terms do end up changing you also need to be willing to take your money out and look for a place to put it all over again.

I'm eager to hear how it works out for my friends. Has anyone out there ever had an account like this? I'd be really interested to hear comments of how it worked for them. How easy was it to get the special rate, how long did the terms last, etc.

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