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High-Yield Rewards Checking Account at a Massachusetts Bank (Danvers)

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Danversbank

Update 10/04/10: The top rate has fallen to 3.01% APY with a balance cap of $25,000.

Danvers Bank has started a high yield rewards checking account with a yield of 3.01% APY for balances up to $25K (0.25% for above). As is typical for these reward checking accounts, you need to meet some conditions to earn the high yield. The two significant conditions include performing at least 12 debit card transactions per month (excluding ATMs) and signing up for monthly direct deposit or receiving a recurring ACH debit. There are also two online banking related conditions that should be easy to meet. When these conditions are not met, the account will revert to a Standard Rate which is currently 0.25%.

The minimum initial deposit is $100. There are no minimum balance requirements or monthly fees. ATM fees by other banks are refunded if you meet the Reward Rate conditions.

Update 6/01/11: The reward checking account is no longer available online. It now requires a branch visit.

Update 5/03/09: There's now an online application which appears to allow people from any state to apply. The application is through Andera and allows account funding using your existing checking or savings account.

Branches are located in several Massachusetts cities including Boston, Danvers, Salem and Wilmington.

The bank has been around since 1850 and has been FDIC insured since 1985 (Certificate # 90185).

For other high yield rewards checking accounts, please see my summary of the best checking accounts.

Thanks to Scott who mentioned this rewards checking account in the finding deals post.

Rate History:

  • 10/04/10: 3.01% APY up to $25K
  • 04/01/08: 4.01% APY up to $25K; 0.25% over $25K
  • 04/08/07: 6.01% APY up to $100K; 0.25% if requirements not met
  Tags: Massachusetts, Danversbank, checking account, reward checking account

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Comments
14 comments.
Comment #1 by Steve (anonymous) posted on
Steve
What does "receiving a recurring ACH debit" mean?

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Comment #2 by Daysha (anonymous) posted on
Daysha
Recurring ach debit: calling your local utility provider and asking your bill to be taken out of the checking account automatically every month. I do this with my cell phone, natural gas, electric, life insurance, newspaper, etc.

1
Comment #3 by Anonymous posted on
Anonymous
Anyone know what the fee for the OOPS is on this account? I couldn't find a schedule of fees on the website.

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Comment #4 by SVG (anonymous) posted on
SVG
 
I called and was told that one needs to come into a branch to open this.

Such 6% checking offers appear sporadically. I wonder how come there are none like this in North California ?

Has anyone here taken advantage of such offers and want to share how it is your experience for these types of accounts so far ? How do you do 12 debit card transactions ? (Sounds like lots of shopping !) Did you encounter trouble jumping over all these hoops ?

- SVG

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Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
svg, thanks for the info. Most of the banks and credit unions offering these seem to always require a branch visit to open.

I'm seeing more and more of these reward checking accounts popping up around the country so perhaps they'll make their way to North CA before long.

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Comment #6 by freshair (anonymous) posted on
freshair
Hi banking guy -

I saw the following 'fine print' on the bottom of rate page in the bank's website -

"This is a variable rate account and the interest rate and APY may change at any time after the account is opened."

And my quesiton to you is:
What are the chances for the bank to change the rate and APY after the account is opened?

I live in MA and would love to take this good deal up but with the concern of question mentioned above.

Thanks.

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Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
About how long these rates will hold, these reward checking accounts are designed to provide higher rates for the long-term. The bank is suppose to benefit from the debit card usages and increased relationships. At least that's how the providers of these services are selling this to the banks (see BancVue website). Whether this works out so the bank is able to maintain the higher rate, it's hard to say.

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Comment #8 by David (anonymous) posted on
David
"Thank you for contacting Danversbank through the 'Ask Kevin' feature on our website. You noticed that we are not equipped for online account opening at this point; we expect to introduce that functionality next year. To open a new account, brand new customers must visit a Danversbank branch in person, at least initially. Being [an out of-state] resident does not preclude you from opening an account, if you travel to Massachusetts frequently and would like to come in and see us to get your account set up. Going forward, you'd be able to take advantage of all of the electronic access that the Rewards account affords, and would not need to be near a physical branch."

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Comment #9 by scott (anonymous) posted on
scott
Just saw an ad in the local paper with a decent Danversbank offer. They just opened a new branch in Saugus and if you go in next week and open or already have this rewards checking, You can get a 5.55% 6 month CD. With all the worries about keeping insured lately this is a good place to park large amounts with their DIF

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Comment #10 by Banking Guy (anonymous) posted on
Banking Guy
Scott, thanks for the info. I posted on this here.

That DIF insurance is a nice feature. I wonder how many big deposits Salem Five Direct got with its 6.10% checking account special due to this insurance.

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Comment #11 by War'n (anonymous) posted on
War'n
I live in Connecticut and drove the 130 miles to open a Danvers Bank 6.01% checking account (bring $100.00 minimum & two forms of ID to open your account),I went to the Chelsea branch; the employee signing me up was friendly and informative.
They give you a month to start meeting the requirements because it will take about 10 days to get the debit card.
Opening the account took 15 minutes and I had a check book and an online account open.
It was just before closing and when I got home a few hours later I went on line and found my $100.00 opening deposit (I deposited cash in case there was a hold time on a check) was now $100.02 off to a good start!!!

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Comment #12 by scott (anonymous) posted on
scott
Parties over
Looks like they knew we were expecting it since title of email was Subject: The email you've been expecting. Still have my $100k max so not terrible

> It's true; since we introduced Free Rewards Checking, the number one question Danversbank has heard is, > "> How long will you offer this great rate?> "> Since market conditions always play a role, we couldn> '> t really say - but we maintained an incredible 6.01% Annual Percentage Yield (APY) throughout numerous rate cuts during the past year. Now, however, the time has come for us to realign ourselves with current market conditions and that means decreasing the effective APY on the account.
>
> Do not stop reading - Free Rewards Checking will still offer the best rate around!!
>
> When you go to a restaurant and find that the prices have increased, you likely understand that it> '> s a result of the fact that the prices the restaurant pays for its ingredients have increased. The same concept applies to the banking industry. Danversbank> '> s cost of > "> ingredients> "> (deposits and loans) is based on market rates, and when market conditions change, we must do what makes the most business sense and reprice our products accordingly.
>
> Effective Tuesday, April 1st, the APY on our Free Rewards Checking account will be 4.01% - still an unbeatable rate! All other account terms and conditions remain unchanged; you> '> ll still get a fabulous rate of interest and refunded ATM fees each statement cycle as long as you have direct deposit or an automatic withdrawal, perform a minimum of 12 debit card purchases, access online and accept e-statements.
>
> Free Rewards Checking is a variable rate account, however, we felt strongly about notifying you before the rate decrease takes effect. We value your continued relationship and thank you for recommending Danversbank and Free Rewards Checking to friends and family who would enjoy the same account benefits. If you have any questions at all, don> '> t hesitate to contact our Customer Support Center at 1-800-771-8200.

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Comment #13 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the update Scott. I guess it was only a matter of time. Did they grandfather you in on the $100K max? I see they list $25K max on their website now.

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Comment #14 by scott (anonymous) posted on
scott
Yes, They grandfathered everybody who opened before 1/14/08 to $100k max.

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