[MN only] St Paul Federal Credit Union 4.99% On Balances Up To $20,000

Update June 1st: New requirements added. These should now be reflected in the post

Offer at a glance

• Interest Rate: Up to 4.99%
• Minimum Balance: None
• Maximum Balance: $20,000
• Availability: Must live, attend school, worship or work in Minneapolis, MN or St. Paul, MN (or being a relative or family member of somebody who is already a St Paul’s member)
• Direct deposit required: Yes, two per month of at least $500 each
• Additional requirements: See below
• Hard/soft pull: Hard pull
• Credit card funding: Up to $1,000 for both checking & savings. Mastercard or Visa
• Monthly fees: None
• Insured: NCUA
• Expiration date: None listed

The Offer

Direct link to offer

• Receive a high interest rate on balances up to $20,000 with St Paul’s Federal Credit Union when you sign up for eStatements, receive two direct deposits of at least $500 per month and login to eBanking monthly. The rate you receive and the maximum balance will be dependent on how many debit card transactions you make monthly (average debit card transaction must be $5+):
  • Earn 2.99% APR on balances up to $10,000 when you use your debit card to make at least 20 purchases per month.
  • Earn 3.99% APR on balances up to $15,000 when you use your debit card to make at least 40 purchases per month.
  • Earn 4.99% APR on balances up to $20,000 when you use your debit card to make at least 60 purchases per month.

The Fine Print

• Bonus Rate of up to 4.99% APR will be paid on balances up to $20,000 as long as cycle requirements are met.  Balances above the qualified tiers will be paid the default current rate of your respective checking account (Capital Checking account pays no dividends).
• If requirements are not met during statement cycle, account will function as your default checking account and earn the stated default APY.
• Requirements for earning the bonus  dividend rate include: 20 debit card purchase transactions (excluding ATM transactions) per statement cycle to meet base bonus dividend tier, 40 debit card transactions (excluding ATM transactions) per statement cycle for the mid-level bonus tier, 60 debit card transactions (excluding ATM transactions) per statement cycle to meet the top bonus dividend tier, enrollment into eStatements through eBanking and monthly login to eBanking, and recurring direct deposit per statement cycle.
• Rate quoted 02/2016.  St. Paul Federal reserves the right to change rates and terms without notice.
• All bank account bonuses are treated as income/interest and as such you have to pay taxes on them

Avoiding Fees

As far as I can see there are no monthly fees to worry about or early account termination fees (although not sure why you would want to close this account).

Our Verdict

This is a pretty insane deal, the requirements are quite high but the fact you can have a balance of up to $20,000 is fantastic especially paired with the 4.99% rate. Here are some creative ideas on how to the the debit card transaction requirement, although I’d be somewhat hesistant to use that too much as they are likely to want to see normal usage on this account.

Unfortunately it’s a hard pull to open, but at least you can fund a small amount with a credit card. Normally I’d say it isn’t worth it due to the hard pull but with the maximum balance of $20,000 I say it is worth it. We’ve added this account to our list of the best high interest accounts.

Hat tip to @telewatcr on Twitter via /r/churning