Consumers Credit Union Rewards Checking review

Earning rewards on your checking account is an attractive feature, since many institutions don’t pay interest on these accounts. Consumers Credit Union (CCU) features a compelling rewards checking account, touting annual percentage yields (APYs) of up to 5%. While it’s possible to use a high-yield checking account to materially earn interest on your cash, it’s not a given. You must meet certain requirements to be eligible. Dig into our Consumers Credit Union Rewards Checking review to learn what actions qualify you for the higher-tier rates, how branch access works, possible costs, and how accounts operate to learn if the interest checking account is worth considering.

Consumers Credit Union Rewards Checking at a glance

A Consumers Credit Union checking account is a rewards account that pays interest on cash in your account. It’s not a standard checking account that earns interest on whatever balance you maintain. Instead, it pays a tiered rate that largely depends on account activity.

Fortunately, the account has no burdensome minimum opening balance. The credit union requires users to open an account with $5. After that, there’s no ongoing minimum balance requirement and no maintenance fees. Your ability to earn interest depends on your account activity.

Although the institution is based in Illinois, anyone can apply for an account after paying a one-time $5 membership fee. The credit union has limited branches in Illinois; you can access your account online and use its nationwide ATM network for many functions. Deposits are insured by the National Credit Union Administration (NCUA), the credit union version of the FDIC.

How the Rewards Checking APY tiers work

Learning that you might be able to earn a 5% APY on a checking account is enticing, but there are some clear caveats to consider with the CCU Rewards Checking accounts. It uses a tiered APY scale, and earning more requires more activity. Here’s what to know about the checking account APY requirements.

Base rewards checking tier

CCU has three tiers in its rewards checking accounts. The base tier is called Rewards Checking, and it earns an APY of up to 3% after you meet certain requirements. You must do the following to qualify for the 3% APY:

• Receive eDocuments
• Have a minimum of 12 debit card purchases every month
• Have direct or mobile check deposits of at least $500 per month; ACH credits also qualify

The APY applies only to balances up to $10,000. Balances over that earn the fallback APY of 0.01%. Practically, the requirements aren’t overly burdensome. Someone who uses their debit card several times a week and has their paycheck direct deposited should qualify for the rate. If you fail to meet the requirements, you will earn the fallback APY and won’t receive ATM refunds.

Higher APY tiers

Rewards Checking isn’t the only tier CCU offers. Two other tiers, called Rewards Checking + CCU Visa, currently pay 4% and 5%. To qualify for either of those tiers, you must meet the Rewards Checking requirements plus use a CCU Visa credit card.

Here are the monthly requirements for the two higher tiers.

There’s no minimum number of purchases for either tier. The credit union only looks at the amount spent, so you must spend at least $500 or $1,000 monthly to earn the rewards interest. If you don’t, your APY will drop to 0.01%. If you can confidently meet the requirements of the base tier and actively use the credit card, you should be able to qualify for the rate.

What happens to balances over $10,000?

Unfortunately, your APY doesn’t continue if you maintain a balance over $10,000. People with larger balances will see their APY drop dramatically. Currently, CCU pays 0.20% APY on balances from $10,001 to $25,000, and 0.10% on balances over $25,000.

Rates vary, and they can change. If you have over $10,000, you may want to store excess funds elsewhere if a higher APY matters to you.

Fees, minimums, and ATM access

Earning interest on your checking account is appealing, but understanding potential costs and requirements is essential to gauge the value. There are several points to consider when looking at cost, including:

• There is a minimum $5 opening balance
• You don’t have to maintain an ongoing minimum balance
• There is no monthly maintenance fee

This isn’t to call the CCU Rewards Checking fee-free checking, as you may incur fees in some cases, such as for overdrafts.

However, it’s important to consider ATM access. CCU has a network of over 30,000 ATMs nationwide. The credit union will reimburse ATM charges, but only if you meet the minimum requirements of the base rewards tier. If you don’t satisfy those requirements, you lose the opportunity for reimbursement in addition to the higher APY.

Membership, branches, and digital banking

CCU has physical branches, but they’re only in the Chicagoland area. You may consider that a detractor, but for the right individual, they can perform many of their banking needs without branch access.

Membership and branch access

CCU says anyone can join. You only need to pay a one-time $5 fee to open an account. Interested parties can apply in person in the Chicagoland area or online.

If you need to go into a physical branch and don’t live in Illinois, CCU participates in shared branching. They offer this at over 5,000 branches nationwide, allowing customers to get money orders and stamps, access surcharge-free ATMs, and handle other banking needs.

Digital banking

Digital banking matters to many, and CCU offers a feature-rich account. You can expect to find the following tools with a CCU Rewards Checking account:

• Mobile check deposit
• Bill pay
• ATM fee refunds
• Account consolidation
• E-statements
• Card controls
• Zelle access
• Credit score access

The credit union goes a long way to help customers who may otherwise feel limited because of the lack of access to a local branch. If you’re not averse to digital banking, you may not mind the seeming inconvenience.

Consumers Credit Union Rewards Checking pros and cons

A rewards checking account is a helpful way to earn interest on your funds. However, knowing the eligibility requirements is essential. Some people may easily earn the rate, while for others the earning potential may be burdensome or not worthwhile.

Here are the pros and cons of the CCU Rewards Checking account.

Pros:

• Ability to earn a competitive APY on your checking account
• There’s no monthly maintenance fee or ongoing minimum balance requirement
• Broad membership availability with a $5 fee to join
• You don’t need a CCU credit card to earn the base tier
• A wealth of digital banking tools to manage your account
• NCUA-insured checking
• ATM fee refund opportunities for people who meet requirements

Cons:

• Recurring transaction requirements to earn the higher rate
• You must use a CCU credit card to earn the best rates
• There’s a balance cap for the rewards rate
• You earn 0.01% if you fail to meet the requirements
• You lose ATM reimbursements if you fail to meet the requirements

Who should consider Consumers Credit Union Rewards Checking?

Using a credit union rewards checking account to earn interest is beneficial, but only if it fits your needs. Understanding your banking activity and current needs is key to knowing whether CCU is right for you.

CCU Rewards Checking may fit your needs if:

• You already receive direct deposits
• You actively use your debit card
• You keep roughly $10,000 or less in your checking account
• You use credit cards responsibly and can hit the spending requirement

Even if you don’t apply for a CCU credit card, the rewards checking account may be a fit if you can reasonably fulfill the requirements.

CCU Rewards Checking may not be suitable for you if:

• You don’t want to follow a monthly checklist for your banking needs
• You rarely use your debit card
• You don’t receive direct deposits
• You typically carry a balance significantly above $10,000

Review other best checking account options if CCU isn’t for you.

Frequently asked questions

The CCU Rewards Checking account is a strong offering, but some readers have questions before going with the credit union.

What happens if I do not meet the Consumers Credit Union Rewards Checking requirements?

If you don’t satisfy the requirements, Consumers Credit Union will reduce your APY to 0.01%, and you won’t receive ATM reimbursements during that month.

Do I need a Consumers Credit Union credit card to earn interest on Rewards Checking?

No, you don’t need a CCU credit card to earn interest on the Rewards Checking account. You can still earn the base 3% rate, but not the higher rates.

Can I join Consumers Credit Union if I do not live near a branch?

Yes, you can join CCU if you don’t live near a branch. They have over 5,000 shared branches and a network of 30,000+ ATMs nationwide.

Is Consumers Credit Union Rewards Checking federally insured?

Yes, CCU is NCUA-insured, which is the credit union equivalent of having FDIC coverage.