Whose Money Is It Anyway?

In the past few years Credit Unions have offered interest rates on savings that are quite compelling.  HOWEVER,  hoops abound through which one must jump in order to achieve these higher rates.  Below is an annual notice regarding some of the hoops and "costs" of the good interest rate shell game  

from my credit union.

VISA transactions for debit card holders

In July 2008, VISA implemented the option for debit card holders to use debit networks

without entering a Personal Identification Number (PIN). Because of the different

networks you may encounter when conducting debit transactions, Visa has requested

that we inform you annually of this change. A transaction conducted without using a PIN

is referred to as a PIN-less debit transaction and is considered a non-VISA debit

transaction. This type of transaction may occur through Accel/Exchange or other networks.  

The terms and conditions of your agreement with Me/CU relating to VISA debit

transactions do not apply to non-VISA debit transactions. A non-VISA PIN-less

transaction will not include the benefits provided by VISA (e.g. zero liability, $50

consumer loss cap, Visa charge back and dispute resolution, provisional credit

policies of Visa, etc). A VISA debit transaction, that would include the VISA benefits,

would be the use of a debit card as a credit transaction.  

Examples of non-VISA transactions:

* Non-VISA Debit Transaction: A cardholder enters a PIN at a Point of Sale terminal.

* PIN-less Debit Transaction: A cardholder provides a card number for an online

transaction or a bill-payment debit where a PIN or signature is not required.

Thanks,

Me/CU

As for me I rarely use a PIN number for a debit card transaction but it looks like I probably should.  Also doing a transaction that otherwise might have been done with cash or check still costs the merchant 2-3% of the transaction.  

More or less the good interest rate you receive on the $20-25,000 savings is supported by fees from these transactions (local merchants likely) which come from the cost of the goods/services one consumes.  That is very different than what the Credit Union can pay on regular savings.  So--"Whose Money Is It?"--It's yours through less services, or higher prices or your local merchant if they don't have it priced in to their goods. 

Many people have decided it is just not worth the hassle--I'm about to join that crowd.