4% APY Checking Accounts

[CBartowski]

Was curious if anyone has heard of this 4% APY checking account up to $50k. Only 2 requirements are 1 DD/ACH/bill pay per month and 15 debit card purchases per month from Tab Bank - Kasasa Cash Checking.

I guess TAB stands for Transportation Alliance Bank, Inc.

They have verbiage that sounds like they're looking for folks automating the 15 xactions as well which I found interesting.

"Commensurate with the spending activities identified above, we expect the account’s debit card to be used frequently throughout each month and for transaction amounts to reflect a wide dollar range. Small debit card transactions conducted on the same day at a single merchant and/or multiple transactions made during a condensed time period particularly near the end of a Monthly Qualification Cycle are not considered normal, day-to-day spending behavior. These types of transactions appear to be conducted with the sole purpose of qualifying for the account’s rewards and thus will be deemed inappropriate transactions and will not count toward earning the account’s rewards. "

According to DoC Orion FCU also has a 4% APY with less required xactions but only open to a few areas.

Anyone have any experiences with either bank?

DoC has an article and You Tuber AskSebby did a short piece on Tab Bank. 

[Anonymous]

I have not heard of this and frankly sounds like too much work!

[tcbofade]

They're on to us...

I just opened a "high yield" savings account with a local CU that requires 15 debit transactions on a related checking account...

I've seen no such verbiage on their website and have every intention of finding 15 micro transactions somewhere...

[Duke_Nukem]

15 $1 Amazon gift card purchases sounds like the trick!  

[CBartowski]

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@Duke_Nukem wrote:

15 $1 Amazon gift card purchases sounds like the trick!  

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I thought the same or the reloads. Tab Bank apparently has a $5 minimum xaction caveat.

[DaveInAZ]

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@Anonymous wrote:

I have not heard of this and frankly sounds like too much work!

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Yep too much work,especially when they crack on the trick of loading $.50 cents 10 times to your Amazon gift card. I did in once for a new bank account bonus, and was new at it. First I tried repeated buying 50 cents of gas, the card got shut down on the 3rd purchase, no doubt fraud prevention. Then I found out about the Amazon trick and 7 transactions of .50 cents, .514, .52, etc. worked. OK once for a bank bonus but I wouldn't do it monthly just for higher interest, especially when they're watching for repeat small transactions.

My primary banking is Memory Bank, 2.45% on Money Market, 1.6% on checking, no debit card nonsense, no minimum/maximum. I keep most funds in MM and move to checking 2-3 times per month to cover bills.

[CBartowski]

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@DaveInAZ wrote:

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@Anonymous wrote:

I have not heard of this and frankly sounds like too much work!

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Yep too much work,especially when they crack on the trick of loading $.50 cents 10 times to your Amazon gift card. I did in once for a new bank account bonus, and was new at it. First I tried repeated buying 50 cents of gas, the card got shut down on the 3rd purchase, no doubt fraud prevention. Then I found out about the Amazon trick and 7 transactions of .50 cents, .514, .52, etc. worked. OK once for a bank bonus but I wouldn't do it monthly just for higher interest, especially when they're watching for repeat small transactions.

My primary banking is Memory Bank, 2.45% on Money Market, 1.6% on checking, no debit card nonsense, no minimum/maximum. I keep most funds in MM and move to checking 2-3 times per month to cover bills.

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I had not heard of Memory Bank. Checked it out, looks like a sweet option! If I need to replace my every day bank this will be in the running!

[iced]

I’m glad to see at least one bank starting to crack down on this type of behavior. Bonus chasing and churning is as much a problem with checking and savings as it is with credit cards.

Hopefully, going forward the banks will find new requirements that aren’t as easy to get around so as to better maintain the spirit of the activity they’re looking for in return for the higher yields.

[601flyguy]

I have a few of these accounts and love em. 

Origin Bank has 4% up to 40k

First Financial Bank has 4% up to 15k

Heritage Bank has 4% up to 25k

I have to do 38 Amazon reloads a month but it's well worth it, especially if you can max these accounts out.

[CBartowski]

So does anyone else have heartburn about keeping large amounts of money in checking accounts that are linked to a debit card you have to use in order to get the high interest rate?