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.
- 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