Update 1/30/09: The top yield has fallen to 3.51% APY. Refer to the bottom of the post for the rate history.
The Brattleboro Savings & Loan is offering a reward checking account that pays 3.51% APY for balances up to $100k (1.01% above) and provides ATM fee refunds if the following monthly requirements are met: 1) 18 debit card transactions, 2) one direct deposit or ACH auto debit, and 3) receive electronic statements. If these are not met, the rate falls to 0.10%. The minimum deposit to open account is $10. After the account is opened, there are no balance requirements or monthly service charges regardless of meeting the above requirements.
This reward checking doesn't seem to be listed at the bank's website. It was advertised today in the Bennington Banner. The ad is available online here.
Update 3/31/08: The reward checking account rate is listed at the Checking Accounts Rate page.
The debit card requirement is quite a bit higher than the typical 10 per month requirement, but at least the cap is higher than the typical $25k.
Branches are located in Brattleboro and Springfield, Vermont. The bank is FDIC insured (FDIC Certificate # 28837).
Other Reward Checking Accounts
For other reward checking accounts in other parts of the country, please see my reward checking account page and my best checking account post.
01/30/09: 3.51% APY
12/28/08: 4.01% APY
03/31/08: 5.01% APY
09/04/07: 6.01% APY