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Update on State Bank of Toledo and Its Nationally Available 6.01% Reward Checking Account


State Bank of Toledo
Update 12/14/07: State Bank of Toledo is now listing a new rate of 5.01% APY for balances up to $70,000. Please see this post for more details.

It has been over 5 months since I first reported on State Bank of Toledo's 6.01% Reward Checking Account. The account continues to pay 6.01% APY on all balances if the typical reward checking requirements are met, and the account continues to be offered nationwide. When I first posted on this account, there were concerns if such a small bank would be able to keep this account nationally available and keep the yield high without any caps. As one commenter mentioned, if 200 people deposit $100K into this account, that'll add $20 million in deposits to the bank. With total deposits of only around $70 million, that would be a large percentage of their deposits.

The FDIC just updated their databases with bank financial information for 9/30/07. The FDIC info for State Bank of Teledo indicates total deposits on 9/30/07 of $72.9 million, up from $67.5 million on 6/30/07. That's an increase of about 8%. Over the same time period of 2006, total deposits only increased by about 2%. So I would think that much of this year's increase is due to this reward checking account.

The good news is their deposits didn't have a huge increase. Of course, with publicity from Bankrate earlier this month, the increases may continue to grow. During the summer, there were banks like FNBO Direct that were offering 6%, so this likely lowered the demand for this reward checking. But now with 6% at online banks being just a memory, I could see a growing demand for this reward checking.

Other banks continue to launch their own reward checking accounts, many with yields over 6%. So the competition may help keep the rates high. It's still too early to know if these reward checking accounts can maintain rates significantly higher than online savings accounts.

[Update: A reader just pointed me to the FW thread where it was reported that State Bank of Toledo is informing customers of new lower rates that'll start January 16, 2008. Interest rate will be 5.25% (5.38% APY) for balances up to $70K, and 3.25% for balances over $70K. Update 11/30/07: New report is that the future rates have not been finalized yet. People will get 30 days notice on their statements. ]

For more info on reward checking accounts, please refer to one of these posts: reward checking overview, State Bank of Toledo reward checking overview, list of reward checking accounts around the nation, and the best checking account post.

  Tags: State Bank of Toledo, checking account, reward checking account

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Comment #1 by Anonymous posted on
one thing to note on this account is that it does NOT allow a beneficiary/payable on death. it can either be an individual or joint account.

Comment #2 by Mike (anonymous) posted on
Fatwallet thread reporting a rate adjustment effective 1/16/08.

Rate will become tiered
5.25% up to $70,000. (5.38 apy)
3.25% over $70,000

Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
Mike, Thanks for the news. Sorry to see the rate go down, but after the recent Fed rate cuts and the possible one next month, I guess it should be expected. Also, I guess they must have had many $100K+ deposits since they're adding tiers. But $70K is still much better than most which only have $25K. I'm still thinking those with the $25K tier will be able to keep their rate higher for a longer time.

Comment #4 by glxpass (anonymous) posted on
Per my talk with a CSR this morning, the rate will change to tiered rates, but the exact details and timing haven't been decided yet. People will get 30 days notice on their statements, which means that the following statement period will be under the current rate, and that the statement period after that will be under the tiered rates. The CSR told me that they intend to keep the rates and tiering as high as they can. So I think SBoT wants to remain competitive.

Comment #5 by Anonymous posted on

Comment #6 by Mike (anonymous) posted on
Rate now advertized at 5.01% APY

Comment #7 by Hans (anonymous) posted on
Just pulled my Equifax report and saw that State Bank of Toledo did an inquiry on me when I applied for the checking account.

Comment #8 by cjdtech (anonymous) posted on
Now down to 3.01%.