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2.75% Reward Checking Account at a Texas Bank (Tradition)


Tradition Bank
Update 11/08/09: The reward checking account is no longer listed on the website.

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.

Rate History:
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
  Tags: Tradition Bank, Texas, checking account

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Comment #1 by justxtina (anonymous) posted on
Hi Banking Guy. I saw this opportunity and just opened an account. I'm not so great at math and could use your help. If I deposit $5,000 the first month and continue to depost $1,000 more each mth, how much would I have by the end of the year? Is it 5.6/12 X the total balance for each month? Thanks for your help

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Here's a quick estimation from your example. This assumes your $5,000 deposit starts the first day of the first month:

interest earned for the initial $5K:
$5,000 * 0.0576 = $288


interest earned on the monthly $1K:
($1,000 * 12)/2 * 0.0576 = $346

The approximate total would be:

$5,000 + $12,000 + $288 + $346 = $17,634

The actual amount would be a little lower since I used the APY to derive $346. Using the rate 5.60% would underestimate it by a little since there is some compounding that is occurring on these $1K deposits.

Comment #3 by justxtina (anonymous) posted on
Thank you! I am new to all of this and your site has helped tremendously.

Comment #4 by Anonymous posted on
January 2009 rate table listing: 2.75% APY (up to $25K--where is the cap mentioned??); 1.00% APY over $25K; 0.15% if requirements not met.

Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
Thanks. I assume they kept the same cap that they had listed when I first posted. I tried to send them a message via their online form, but it had errors.

Comment #6 by Anonymous posted on
Correct me, but has Gold Star Checking disappeared from the website?