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DCU savings rate now 6.17%

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DaveInAZ
Senior Contributor

Re: DCU savings rate now 6.17%


@Anonymous wrote:

@DaveInAZ wrote:

@Green456 wrote:

That's $5 per month. Not bad.


$5.141667 per month if you count the pennies & fractions - $61.70 per year divided by 12.

 


Since any money above $1000 only earns 0.25% interest, one does not earn $61.70 interest per year, but "only" $60.07. So the average monthly earning is $5.01.


I didn't count anything over $1,000. Unless my Excel spreadsheet is lying to me, $1,000 at .0617 (6.17%) is $61.70 annually. $1,000 earning $60.07 annually is only .0607, 6.07% interest.  DCU's current interest on the first $1,000 in savings is 6.17%, not 6.07%.

But it's not worth arguing over pennies & fractions. But I did screw up this month, I left $1,000.01 in my savings this month, so that penny is going to earn only .25%.

Message 21 of 35
joltdude
Senior Contributor

Re: DCU savings rate now 6.17%

So basically i just just put 1K in the account and monthly peel off the excess or should i keep like 995 in the account and peel off the rest ?

 

Message 22 of 35
Anonymous
Not applicable

Re: DCU savings rate now 6.17%

Just leave 1k, you're overthinking this, you'll still get 6.17% on the first 1k if your balance is over 1k.
Message 23 of 35
Anonymous
Not applicable

Re: DCU savings rate now 6.17%


@DaveInAZ wrote:

@Anonymous wrote:

@DaveInAZ wrote:

@Green456 wrote:

That's $5 per month. Not bad.


$5.141667 per month if you count the pennies & fractions - $61.70 per year divided by 12.

 


Since any money above $1000 only earns 0.25% interest, one does not earn $61.70 interest per year, but "only" $60.07. So the average monthly earning is $5.01.


I didn't count anything over $1,000. Unless my Excel spreadsheet is lying to me, $1,000 at .0617 (6.17%) is $61.70 annually. $1,000 earning $60.07 annually is only .0607, 6.07% interest.  DCU's current interest on the first $1,000 in savings is 6.17%, not 6.07%.

But it's not worth arguing over pennies & fractions. But I did screw up this month, I left $1,000.01 in my savings this month, so that penny is going to earn only .25%.


The 6.17% is the APY and not the actual rate used to compute the interest.   The actual rate is 6.00%.   For balances up to  $1000 DCU computes the interest as follows

 

 (Begining Balance)   * 0.06  *  (Numbers of days in the statement period) /365   (rounded to  two decimals)

 

If you leave the interest in  the   account and  the interest would earn the same 6.00%, then after 12 months you would  have 1061.67  in your account.  But  since any amount above $1000 only earns 0.25% you actually will only have $1060.07. 

Now if  you withdraw the earned interest each month and keep the balance at $1000 at all times, you will earn exactly $60 interest  annually.

 

 

Message 24 of 35
Anonymous
Not applicable

Re: DCU savings rate now 6.17%

I was going to post a new thread but deadline is tomorrow (11/30/18) so I'll post it here in case if anyone is interested.

 

Great Lake CU is offering a special 7 months CD @ 7% up to 7k. Deadline is 11/30/18, new members expect HP on TU for membership, will pull Chex but not inquiry sensitive, nationwide with $5 donation to join.

 

I have not decided if an HP is worth $285, but I think it's a no brainer if you're already a member.

Message 25 of 35
iced
Valued Contributor

Re: DCU savings rate now 6.17%


@Anonymous wrote:

I was going to post a new thread but deadline is tomorrow (11/30/18) so I'll post it here in case if anyone is interested.

 

Great Lake CU is offering a special 7 months CD @ 7% up to 7k. Deadline is 11/30/18, new members expect HP on TU for membership, will pull Chex but not inquiry sensitive, nationwide with $5 donation to join.

 

I have not decided if an HP is worth $285, but I think it's a no brainer if you're already a member.


It's even less of a gain than that if you factor in the gain from a comparable savings/CD/high yield account holding that money for a similar period of time. The gain is only as much as the next best offer rather than $0.

Message 26 of 35
Anonymous
Not applicable

Re: DCU savings rate now 6.17%


@iced wrote:

@Anonymous wrote:

I was going to post a new thread but deadline is tomorrow (11/30/18) so I'll post it here in case if anyone is interested.

 

Great Lake CU is offering a special 7 months CD @ 7% up to 7k. Deadline is 11/30/18, new members expect HP on TU for membership, will pull Chex but not inquiry sensitive, nationwide with $5 donation to join.

 

I have not decided if an HP is worth $285, but I think it's a no brainer if you're already a member.


It's even less of a gain than that if you factor in the gain from a comparable savings/CD/high yield account holding that money for a similar period of time. The gain is only as much as the next best offer rather than $0.


That's true in most cases but since most of my available loose funds are tied up at Ally for the 1% bonus until Jan 15, this will have to come out of my business checking that pays 0 interest. Probably not going for it though, 7 months limitation is probably not worth opening another CU relationship with HP.
Message 27 of 35
Anonymous
Not applicable

Re: DCU savings rate now 6.17%

Thanks to this thread I set up a savings and checking the other day.  I wanted somwhere better to park some cash then the .2% rate my CU was giving me on my savings. 

 

Application and setup was painless.  I used their online chat help service which answered most questions, and ended up calling in and speaking to a CSR on a few more who was very helpful.  So far a good experiece with this CU.

Message 28 of 35
_NERD
Established Contributor

Re: DCU savings rate now 6.17%

Hey oldman,

Is there a HP for DCU? I’m just learning about this stuff tonight. I’d be interested in earning 6-7% Smiley Wink


Thanks!

3B profile optimization in progress...
Message 29 of 35
Anonymous
Not applicable

Re: DCU savings rate now 6.17%

I have DCU. I don't remember any hard pulls for opening a savings account.
Message 30 of 35
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