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3.91% Reward Checking Account at a Tennessee Bank (Peoples)

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Update 1/12/09: The top yield has fallen to 3.91% APY.

Peoples Bank is offering a reward checking account that pays 3.91% APY on balances up to $25K (1.51% for over) and refunds ATM fees if the following monthly requirements are met: 1) 10 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 0.50% APY. Note, if the account dips below $400 and has no activity for six months (dormant), a monthly fee of $2 will apply.

It appears that a branch visit is required to open this account. Branches are located in the Tennessee cities of Clifton, Waynesboro and Hohenwald. The bank is FDIC insured (Certificate # 9489).

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.

Rate History:
04/01/09: 3.91% APY up to $25K; 1.51% for above; 0.50% if req's are not met
01/12/09: 3.91% APY up to $25K
04/15/08: 5.01% APY up to $50K
12/02/07: 6.01% APY up to $50K; 0.50% for above; 1.51% if req's are not met

Edit 3/20/09: The balance cap appears to have changed from $50K to $25K in January.

  Tags: Peoples Bank, Tennessee, checking account, reward checking account

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Comments
7 Comments.
Comment #1 by Anonymous posted on
Anonymous
Is there any reason why all the reward accounts pay 6.01%?

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
6.01% APY is a very common yield for these reward checking accounts, at least when they're introduced. However, I'm seeing some banks starting to lower these rates. Perhaps they wanted the yield to stand out and grab people's attention.

1
Comment #3 by Anonymous posted on
Anonymous
It was great while it lasted, but the rate has fallen to 5.01% APY. Very good customer service at the Hohenwald branch! The account was opened and earning interest next day, plus you get to see the interest accumulate each day.

1
Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the update and info.

Sorry to see the rate drop. At least it's still over 5%. Another one fell yesterday from 6.01% to 4.01%.

1
Comment #5 by Anonymous posted on
Anonymous
Top rate has fallen to 3.91% APY. Other rates remain same.

1
Comment #6 by Anonymous posted on
Anonymous
Balance cap is now showing $25K -- changed in early January along with rate drop?

1
Comment #7 by Anonymous posted on
Anonymous
A switcharoo between the base rate and the middle tier: 1.51% over $25K; base rate 0.50%. [Error correction??]

1