Funding New Checking Account with Credit Card??

[Anonymous]

So I have been trying to figure out what to do with my emergency savings for a while.  It is currently sitting in an online Ally Savings account earning 1.00%.  I recently read an article about higher yield checking accounts from some smaller credit unions.  I noticed one that I qualified for that offered 3% for the first $15,000.  I have more than that currently sitting in Ally and figured it would be an extra $300/yr for money I don't really touch anyway so I started opening an account. 

Here is my question:  On the page where you fund your new account the only options are Debit/Credit or check. Would I be asking for trouble by funding this account with one of my credit cards for the rewards?  Also, am I missing something becuase this doesn't seem right?

It is Lake Michigan Credit Union     lmcu.org  if anyone is curious

Thanks

[Anonymous]

Typically funding checking with CC counts as cash advance.  So maybe with Ring?  Even that would be $3 though.  Seems better to use debit, or better yet just use routing/account number from your Ally savings.

[Anonymous]

Ok, that makes more sense.  Definitely don't want to occur any cash advance fees, was planning on transferring directly from Ally when I started the app but when I saw the credit card funding option I was blinded by 15,000 UR's and knew there had to be some sort of catch.  Thanks

[Anonymous]

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@Anonymous wrote:

Typically funding checking with CC counts as cash advance.  So maybe with Ring?  Even that would be $3 though.  Seems better to use debit, or better yet just use routing/account number from your Ally savings.

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Not necessarily.  There are some banking institutions that will allow you to fund a new account with a credit card and it doesn't record as a cash advance (this is determined by credit card, not the bank that's being funded).  Usually however there is a limit to how much you can fund wiht a CC. There are quite a few CC companies that don't record it as a cash advance including Barclays and Citi (at least in recent past).

[Anonymous]

might be useful sites for you (see below). i highly suggest reading up on them (and more) before moving forward. goodluck!

http://www.doctorofcredit.com/lake-michigan-credit-union-3-reward-checking-account-on-up-to-15000/
http://www.doctorofcredit.com/high-interest-savings-to-get/
https://www.depositaccounts.com/checking/reward-checking-accounts.html

btw if you have no need for your CC cash advance, best if you lower them.

[Anonymous]

I think I opened Penfed savings account with Citi DC after setting my cash limit to $0

[sponge_gto]

Back in the days LMCU let you fund a new account from CC up to $5000 and it would post as a purchase for most cards. Now the limit is severely reduced but I doubt it would have gone to the extreme of being a cash advance. It's far from the highest rate you can get but they're a decent CU to have in your arsenal.

[Anonymous]

I think this checking account may also require that you use the debit card a certain amount of times per month.  I thought about it as well awhile back but it seemed like I had to fulfill some criteria each month that I just wasn't willing to do. 

[Loquat]

I initially funded my PenFed account from my CC with no issues or cash advance fees.  Did the same thing with NASA as well...

[Anonymous]

Well, thanks for all the info everyone.  there definitely seems to be more info out there and this seems to be more common than I realized.  I've got some more research to so it seems as well as decreasing almost all of my cards CA limits to 0 just in case