The $286 million McGraw-Hill Federal Credit Union has introduced a new account it said pays 16 times the current national average annual percentage yield on checking accounts, with no monthly fees or minimum balances.

The S³ Account enables consumers to “Save, Spend, and Simplify” and is currently paying 1%, and also includes monthly ATM surcharge rebates, said McGraw-Hill FCU, which serves about 19,500 members from its offices in East Windsor, N.J., and New York City.

The account requires direct deposit but also allows members to choose the direct deposit minimum, which it says is unique in its market.

The credit union said it seeks to use the new account, as well as its emphasis on financial wellness through financial literacy and education, to gain market share from consumers increasingly disaffected from large banks.

“We recognize the financial pain of New York City-area consumers, and others nationwide, whose hard-earned funds are being steadily drained by the fees and confusing conditions imposed by for-profit institutions whose products offer little or no yield,” said McGraw-Hill FCU President/CEO Shawn Gilfedder.