Cheapest way to get POS swipes for high yield checking account?

[Azza]

Hey everyone.

POINT ONE:

Recently opened a brand new account with Clackamas Federal Credit Union for a 2.275% APY on their Plus Checking account. Seems like a pretty great deal, cap is at $15k (I am aware others are better but they're local to me) and I thought this would be a good start for trying out high-yield checking.

So... at the branch the guy told me specifically only in-person POS transactions are going to be the only way to generate credit towards the APY. I need twelve transactions a month.

Capped out, what would be the best strategy? At $15,000, that's $341.25 yield per year. Twelve $1 purchases each month would wind up being $144 opportunity dollars being spent to net gain of of $197.25. :thinking: Does that put the actual value of my savings to 1.37%? Am I crazy or is that not .. awesome?

Or wait, is it 341.25 ÷ 144 = 2.37%? ... ?

POINT TWO:

I wish it wasn't this difficult. Selling my house and going to be sitting on a chunk of cash to buy my next house with burning a hole in my wallet while I work on some stuff. Want to diversify/save my nest egg in the best way possible to grow it while I wait about a year to purchase my next home. I am interested in as many considerations as possible. This is a new realm for me.

Thanks all!

[SouthJamaica]

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@Azza wrote:

Hey everyone.

POINT ONE:

Recently opened a brand new account with Clackamas Federal Credit Union for a 2.275% APY on their Plus Checking account. Seems like a pretty great deal, cap is at $15k (I am aware others are better but they're local to me) and I thought this would be a good start for trying out high-yield checking.

So... at the branch the guy told me specifically only in-person POS transactions are going to be the only way to generate credit towards the APY. I need twelve transactions a month.

Capped out, what would be the best strategy? At $15,000, that's $341.25 yield per year. Twelve $1 purchases each month would wind up being $144 opportunity dollars being spent to net gain of of $197.25. :thinking: Does that put the actual value of my savings to 1.37%? Am I crazy or is that not .. awesome?

Or wait, is it 341.25 ÷ 144 = 2.37%? ... ?

POINT TWO:

I wish it wasn't this difficult. Selling my house and going to be sitting on a chunk of cash to buy my next house with burning a hole in my wallet while I work on some stuff. Want to diversify/save my nest egg in the best way possible to grow it while I wait about a year to purchase my next home. I am interested in as many considerations as possible. This is a new realm for me.

Thanks all!

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Many dollars have been lost striving for a little more yield.

To use a debit card which is attached to an account with a significant amount of money in it is risky.  If there is fraud due to exposure at a card reader, your savings could be wiped out or frozen.

As to your arithmetic, no it makes no sense. The yield is 2.275%.  But it's better to have your savings in a place where it's safe.

[longtimelurker]

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@Azza wrote:

.

Capped out, what would be the best strategy? At $15,000, that's $341.25 yield per year. Twelve $1 purchases each month would wind up being $144 opportunity dollars being spent to net gain of of $197.25. :thinking: Does that put the actual value of my savings to 1.37%? Am I crazy or is that not .. awesome?

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The $144 opportunity dollars don't necessarily get fully subtracted (assuming they are spent on something that isn't useless).  In the best possible case, you buy something that you would have bought anyway, then you just need to subtract 2 or 3% of that, depending on what credit card you could have used instead.   In the worst case, when you buy something and throw it away, yes, subtract the $144.

As stated before, I think @SouthJamaica fears about security are over cautious.

[longtimelurker]

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@SouthJamaica wrote:

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Many dollars have been lost striving for a little more yield.

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Very true, but most notably in institutional speculation.   How widespread is it really with debit cards and High Yield accounts, especially when only used online?

[longtimelurker]

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@Azza wrote:

So... at the branch the guy told me specifically only in-person POS transactions are going to be the only way to generate credit towards the APY. I need twelve transactions a month.

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I'm guessing this means that only PIN transactions are counted.   Does the system have a counter showing how near you are to the requirement?   If so, I might be tempted to try say an Amazon reload (making sure to click the box making sure it is run as a debit card) and check!

[ccquest]

You also don't need to sacrifice your yield. For my HYSA, I have the $20k in there, transfer $25 in, do my 15 transactions, and transfer out around $70 a month. Keeps it topped off each month but the balance never goes below the $20k. Sure I'm "sacrificing" interest on the $25 for a few days, but that's it.

[Kforce]

I believe the math is closer to this:

These numbers are with 12 - one dollar purchases and only losing 1.1% interest on 12 dollars a month extra sitting in the HYS for debits. Every month pushing an extra 12 to cover new charges. This also includes loss from switching debit spend from a 3% rewards card.

Same but with 12, 5$ purchases a month:

[M_Smart007]

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@SouthJamaica wrote:

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@Azza wrote:

Hey everyone.

POINT ONE:

Recently opened a brand new account with Clackamas Federal Credit Union for a 2.275% APY on their Plus Checking account. Seems like a pretty great deal, cap is at $15k (I am aware others are better but they're local to me) and I thought this would be a good start for trying out high-yield checking.

So... at the branch the guy told me specifically only in-person POS transactions are going to be the only way to generate credit towards the APY. I need twelve transactions a month.

Capped out, what would be the best strategy? At $15,000, that's $341.25 yield per year. Twelve $1 purchases each month would wind up being $144 opportunity dollars being spent to net gain of of $197.25. :thinking: Does that put the actual value of my savings to 1.37%? Am I crazy or is that not .. awesome?

Or wait, is it 341.25 ÷ 144 = 2.37%? ... ?

POINT TWO:

I wish it wasn't this difficult. Selling my house and going to be sitting on a chunk of cash to buy my next house with burning a hole in my wallet while I work on some stuff. Want to diversify/save my nest egg in the best way possible to grow it while I wait about a year to purchase my next home. I am interested in as many considerations as possible. This is a new realm for me.

Thanks all!

---

Many dollars have been lost striving for a little more yield.

To use a debit card which is attached to an account with a significant amount of money in it is risky.  If there is fraud due to exposure at a card reader, your savings could be wiped out or frozen.

As to your arithmetic, no it makes no sense. The yield is 2.275%.  But it's better to have your savings in a place where it's safe.

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@SouthJamaica, been there got the "T" shirt

If I remember correctly, someone recommended USALLIANCE FCU .. BTW, they are upping the high yield savings to 1.75% APY tomorrow,

and no gimmics to get that yield. No debit attached, no direct deposit, $500 minimum and no maximum.

Per the rep on the phone, the APY changes tomorrow.

https://www.usalliance.org/banking-products/high-dividend-savings

[Gingi]

Cash App usually codes as "POS"- I would suggest trying it out with one small trasaction to see how your CU codes it. 

[Kforce]

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@M_Smart007 wrote:

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@SouthJamaica wrote:

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@Azza wrote:

Hey everyone.

POINT ONE:

Recently opened a brand new account with Clackamas Federal Credit Union for a 2.275% APY on their Plus Checking account. Seems like a pretty great deal, cap is at $15k (I am aware others are better but they're local to me) and I thought this would be a good start for trying out high-yield checking.

So... at the branch the guy told me specifically only in-person POS transactions are going to be the only way to generate credit towards the APY. I need twelve transactions a month.

Capped out, what would be the best strategy? At $15,000, that's $341.25 yield per year. Twelve $1 purchases each month would wind up being $144 opportunity dollars being spent to net gain of of $197.25. :thinking: Does that put the actual value of my savings to 1.37%? Am I crazy or is that not .. awesome?

Or wait, is it 341.25 ÷ 144 = 2.37%? ... ?

POINT TWO:

I wish it wasn't this difficult. Selling my house and going to be sitting on a chunk of cash to buy my next house with burning a hole in my wallet while I work on some stuff. Want to diversify/save my nest egg in the best way possible to grow it while I wait about a year to purchase my next home. I am interested in as many considerations as possible. This is a new realm for me.

Thanks all!

---

Many dollars have been lost striving for a little more yield.

To use a debit card which is attached to an account with a significant amount of money in it is risky.  If there is fraud due to exposure at a card reader, your savings could be wiped out or frozen.

As to your arithmetic, no it makes no sense. The yield is 2.275%.  But it's better to have your savings in a place where it's safe.

---

@SouthJamaica, been there got the "T" shirt

If I remember correctly, someone recommended USALLIANCE FCU .. BTW, they are upping the high yield savings to 1.75% APY tomorrow,

and no gimmics to get that yield. No debit attached, no direct deposit, $500 minimum and no maximum.

Per the rep on the phone, the APY changes tomorrow.

https://www.usalliance.org/banking-products/high-dividend-savings

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USAlliance has horrible ACH limits on daily, transfers

They will take your money but it takes time to get it back.

OK,  if you don't need it back quick for something. (YMMV)