Hey everyone,
I’m thinking about opening a Primary Savings account with DCU to take advantage of the rate. I’m seeing it listed as 6.17% APR for the first $1000, then 0.05% for any amount over that. Is this actually what it means, or am I missing something? The table mentions ‘6.17% - 0.05%’, which seems confusing.
Can’t upload a screenshot, but here’s the link if you want to check the table: https://www.dcu.org/bank/savings/primary-savings.html
Yes, looks like only balances over $1K are earning 0.05%.
So, basically, you’d only want to keep $1K in there.
MaryJane said:
Yes, looks like only balances over $1K are earning 0.05%.
So, basically, you’d only want to keep $1K in there.
Right? That table is confusing. I’ve worked in banks for years (not in Finance, though) and this looks like a big miscommunication. If it’s actually 0.05% over $1K, then that’s a dealbreaker for me.
@denvah
I get what you’re saying. If it’s really 0.05% for balances above $1K, then it’s not worth much. These types of offers are usually limited to small amounts. If you’re unsure, maybe reach out to them and ask for a clear answer.
@Val
Good idea. I’ll call them and see what’s up. Never heard of ‘dividend rate’ before, so all of this is a bit confusing.
denvah said:
@Val
Good idea. I’ll call them and see what’s up. Never heard of ‘dividend rate’ before, so all of this is a bit confusing.
Just to let you know, it’s only on $1000. The goal is to help people with limited savings. It’s more of a benefit to credit union members with small balances. They can offer that rate on $1000 but going higher would be a financial stretch for them.
The table’s pretty clear. You get 6.17% on the first $1000 and 0.05% on any amount over that.
The APY column is required by law and shows a blended yield, so it will vary depending on your balance. You start at 6.17%, but every extra dollar gets closer to 0.05%, pulling the rate down as you add more.
@Brooklyn
Thanks for clarifying! I’m new to credit unions, so this is helpful info.
denvah said:
@Brooklyn
Thanks for clarifying! I’m new to credit unions, so this is helpful info.
Sure thing! And to be clear, this APY reporting applies to all banks, not just credit unions. It’s there to make it easier to compare rates across institutions.
@Brooklyn
I see. So, when it says ‘remaining balance’ with 6.17% - 0.05%, that’s actually just showing the APY range? If it’s only 0.05% over $1000, it’s confusing to keep 6.17% in the table.
denvah said:
@Brooklyn
I see. So, when it says ‘remaining balance’ with 6.17% - 0.05%, that’s actually just showing the APY range? If it’s only 0.05% over $1000, it’s confusing to keep 6.17% in the table.
Exactly. The first $1000 earns the 6.17% rate, but anything beyond that drops down to 0.05%. The table shows the range to give you an idea of the overall yield as your balance grows.
The 6.17% on $1K is nice if you just set up a small auto deposit and forget it.
jordansmith said:
The 6.17% on $1K is nice if you just set up a small auto deposit and forget it.
Not sure if $65 a year is worth the effort for me.
Just open a bunch of accounts and put $1K in each one, haha.
Archibald said:
Just open a bunch of accounts and put $1K in each one, haha.
It’s one account per SSN, so no luck there.
DCU has two savings accounts: Primary Savings (6.17% on $1K only) and Advantage Savings at 3.56% on any balance. Best way to go is to keep $1000 in Primary and the rest in Advantage.
ShalomKings said:
DCU has two savings accounts: Primary Savings (6.17% on $1K only) and Advantage Savings at 3.56% on any balance. Best way to go is to keep $1000 in Primary and the rest in Advantage.
Makes sense. Feels like a marketing tactic, but it could work.