Update 1/05/09: The top yield has fallen to 2.75% APY. Refer to the bottom of the post for the rate history.
Tradition Bank has started a reward checking account called Gold Star Checking with a current yield of 2.75% APY for balances up to $25,000 (1.00% for over) and refunds ATM fees if the following monthly requirements are met: 1) 10 debit card purchases, 2) one ACH credit or debit (third party initiated ACH), and 3) enroll and receive electronic statements. If these are not met, the rate falls to 0.15%. There's a minimum opening balance of $100, but there are no monthly maintenance fees or minimum balance requirements.
It appears a branch visit is required to open the account. Branches are located in the Houston, Texas area. The bank is FDIC insured (Certificate # 23032).
Thanks to the reader who mentioned this reward checking in the comments.
Other High Yield Reward Checking Accounts
Please see my reward checking overview for general information and a history of these reward checking accounts. For other reward checking accounts please see my list of reward checking accounts around the nation and the best checking account post.
01/05/09: 2.75% APY for up to $25K; 1.00% APY for above
04/04/08: 4.26% APY for up to $25K
01/10/08: 5.76% APY for up to $25K; 1.51% APY for above