M/A-COM Federal Credit Union has started a rewards checking account that pays 3.00% APY on balances up to $10K (0.25% for over) if the following monthly requirements are met: 1) 12 debit card transactions, 2) one recurring ACH or bill pay transaction, and 3) receive account statements electronically. If these requirements are not met, the rate falls to 0%.
Update 11/14/07: A branch visit is now required to open this checking account. A reader left the following comment:
Per CSR, effective November 7th, this account requires a branch visit to open. Interestingly, you can still join the credit union without a branch visit, but you can't get this product. The CSR stated that the account was much more popular than they anticipated, and they didn't want to pay out such a high interest rate to everyone.
Membership into the credit union is open to members of the MADD organization or the Tewksbury Historical Society, both of which are open to anyone. You can also be eligible for credit union membership if you live in parts of Massachusetts. Please see the credit union's membership eligibility page for the full details. Credit union membership requires a minimum $25 deposit into your share savings account.
Branches are located in Lowell, MA. The credit union is federally insured by the NCUA (Charter # 12666). It's a small credit union with $20.4 million in assets and 2,898 members so this could affect the reward checking account if it gets too popular.
Thanks to glxpass who mentioned this in the finding deals post and who has posted additional details in this FW thread. Credit to Credit Union Deals for the intial find.
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.
01/29/09: If requirements are not met, rate now falls to 0%
01/02/09: 3.00% APY for up to $10K
04/27/08: 6.00% APY for up to $10K
03/05/08: 6.00% APY for up to $25K
10/25/07: 6.00% APY for up to $100K; 0.25% for above and if req's not met