5% Savings/Checking Account at Pittsburgh/Cleveland Bank (Dollar)

Dollar Bank has come out with a new savings/checking account package with a savings account that pays 5% APY. It's called the e-Checking and e-Savings account.

The main benefit over Citibank's or WaMu's savings/checking account package is the money back from debit card and bill pay. However, it's not a lot of money. You get 10 cents back for each purchased made with the debit card and 5 cents back for each online bill payment. You can earn a max of $150 per year, although that would take a whole lot of debit card purchases and/or bill payments.

One big drawback for the e-Savings account is the $5K balance required to earn 5%. Balances under $5K earn 3%. However, there are no minimum balance requirements to avoid a monthly fee. A drawback for the e-Checking is that two electronic bill payments per month is required to maintain the account. At least there's no direct deposit requirement. Some other drawbacks that I received from the CSR include no reimbursements of ATM charges from other banks and no free checks (first box of 50 checks free if opened online.) Also, they don't have an ACH transfer service to electronically move money to and from your other banks.

According to the CSR, you can open the accounts online and there should not be a hard credit inquiry. They'll mail you a form to sign and you have to send in a copy of your driver's license and the check. The total minimum deposit is $100 ($50 for each account).

You have to live in the bank's market area which is between Cleveland, Ohio and Pittsburgh, Pennsylvania. Most of the ">branches are located in and around Pittsburg and Cleveland.

The bank is FDIC insured.

Thanks to the reader who mentioned this in the finding deals post.