Update 1/10/10: The top rate has fallen to 2.55% APY. See bottom of post for the rate history.
Verity Credit Union has a reward checking account called Cartwheel Checking that pays 2.55% APY on balances up to $10,000 (0.75% for over) and refunds ATM fees (up to $25 per cycle) if the following monthly requirements are met: 1) 12 debit card point-of-sale transactions, 2) receive electronic statements, and 3) access online banking. If these are not met, the rate falls to 0.10%. There are no monthly balance requirements or monthly service charges regardless of meeting the above requirements.
Two nice features of this reward checking account is
Membership is open to anyone who lives, works, worships or attends school in Washington State. You can also qualify via Select Employee Groups. Most of these seem to be military related. Please refer to their Who-Can-Join page for more details. Membership requires a $5 fee and a minimum deposit of $5 in the share savings account.
Branches are located in Seattle, Auburn and Lynnwood. The credit union is federally insured by the NCUA (Charter # 68517). It has $341.2 million in assets and 25,091 members.
Thanks to the reader who emailed me info on this credit union.
More Info on High Yield Reward Checking Accounts
For more information on reward checking accounts, please refer to one of these posts: reward checking overview, list of reward checking accounts around the nation, and the best checking account post.
12/01/09: 2.55% APY up to $10K
05/05/09: 3.05% APY up to $10K; 0.75% over (Cartwheel checking), Velocity Checking appears to remains the same for existing customers. New Velocity Checking accounts are not available.
05/01/09: 3.05% APY up to $25K; 0.75% over
03/01/09: 3.50% APY up to $25K;
02/02/09: 3.50% APY up to $40K
12/01/08: 4.05% APY up to $40K
10/01/08: 4.50% APY up to $40K
07/01/08: 5.05% APY up to $40K. The yield for balances over $40K dropped from 2% to 1%.
06/01/08: Temporary promo with top yield of 6.75% APY.
12/18/07: The top yield was 6.01% APY.