LMCU Limits Credit Card Funding for Checking Accounts

Lake Michigan Credit Union offers a checking account with an attractive 3% interest rate on balances up to $15,000. This is quite a good deal as other high-yield options are typically throttled at just $5,000. There are, however, a few hoops you have to jump through in order to get this 3% rate, see Lake Michigan Credit Union: 3% Reward Checking Account On Up To $15,000, and there is also a hard pull (Transunion) done at the time of account opening.

The good part was always that at the time of account opening you were able to fund it with up to $15,000 with a Visa or Mastercard. (These are always showing up as purchases, not cash advances).

Sadly, they’ve now lowered the max credit card funding to just $2,000. Even if you open multiple accounts, the limit is still $2,000 total combined.

Keep in mind that the LMCU account is still a robust option for the sake of its high-interest rate. Until now, the hard Transunion inquiry at the time of account opening was ‘offset’ by the $15k credit card funding and that’s no longer the case, but if you aren’t inquiry sensitive for Transunion this won’t be an issue.

Thanks to multiple readers who pointed this out in the comments. We’ll update the bank account funding page to reflect the new reality.

Update November 2015: The limit is now just $50, as multiple readers noted in the comments here.

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