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DETAILSINSTITUTIONAPYMINMAXPRODUCT
The Bank of Fayetteville1.00%-$15kSmart Checking
Accounts mentioned in this post. Rates as of July 25, 2014

High-Yield Reward Checking Account at an Arkansas Bank (The Bank of Fayetteville)

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The Bank of Fayetteville

Update 12/07/10: The top yield has fallen to 2.25% APY. See bottom of the post for the rate history.

The Bank of Fayetteville is offering a reward checking account called Smart Checking. It pays 2.25% APY on balances up to $25,000 (0.15% for above) and refunds ATM fees nationwide (up to $25 per month) if the following monthly requirements are met: 1) 10 check card transactions, 2) one direct deposit or ACH electronic payment, 3) receive an E-statement, and 4) sign on to online banking. If these are not met, the rate falls to 0.05%. The minimum opening deposit is $100.

Update 1/6/11: The online application at CheckingFinder.com now states that you must reside in Arkansas to apply for the account.

There's an "Apply Now" button at the Smart Checking page which allows you to apply online. I've confirmed with the bank in February 2008 that the account is available nationwide. Also, the account is listed at CheckingFinder for any US zip codes. You can also apply at this CheckingFinder page.

Update 10/24/09: The bank now offers the Smart Savings Account that's linked to the Smart Checking Account. If you meet the Smart Checking requirements, the Smart Savings pays 0.75% APY on balances up to $50,000 (0.40% over) as of 12/7/2010.

In February 2008 this bank was mentioned in this Wall Street Journal article that discussed high yield reward checking accounts.

The bank has 8 offices in Fayetteville and West Fork, Arkansas. It has been FDIC insured since (Certificate # 26975).

Rate History:

  • 02/09/11: 2.25% APY up to $25K
  • 12/06/10: 2.25% APY up to $50K; 0.15% over; 0.05% base | Savings: 0.75% APY up to $50K; 0.40% over; 0.15% base
  • 05/12/10: 2.75% APY up to $50K
  • 12/10/09: 3.20% APY up to $50K; 0.30% over $50K; 0.10% base
  • 10/24/09: Savings Account: 1.31% APY up to $50K; 0.40% over
  • 03/17/09: 3.50% APY up to $50K; 0.40% over $50K
  • 02/10/09: 4.00% APY up to $50K; 0.50% over $50K; 0.15% if requirements not met
  • 11/02/08: 4.00% APY (1/13/09: had been listed as 4.01%)
  • 05/15/08: 4.51% APY
  • 02/10/08: 5.01% APY up to $50K; 1.01% over $50K; 0.20% if requirements not met

  Tags: The Bank of Fayetteville, Arkansas, checking account, reward checking account

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Comments
16 Comments.
Comment #1 by Anonymous posted on
Anonymous
It's interesting how the majority of these Rewards Checking accounts have a cap (either $50K or $25K). I guess I got lucky that the one I signed up with, Southland Credit Union, has no cap. I hope that Southland CU won't decide to institute a cap, which would mean I would have to transfer a lot of funds out.

1
Comment #2 by Anonymous posted on
Anonymous
Does anyone know if there is any hard pull for opening an account?

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Comment #3 by Corey (anonymous) posted on
Corey
A hard credit pull was not done to me when I opened up my account this month.

Southland Credit Union charges $10 for each ACH transfer out of the account, and limits the amount to $5,000 maximum per transfer.

They do not charge anything for incoming ACH transfers and there is no limit to the amount, just a $10 minimum.

As of February 13th, 2008, there still is no balance cap, but I expect that since 99% of these types of rewards accounts have a cap, Southland Credit Union will have to institute a balance cap.

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Comment #4 by Anonymous posted on
Anonymous
Do you guys get the highest interest rate with no problem?
I just received my 2nd month statement (1st month was the grace months earning the highest interest rate), and it shows my account was NOT qualified for the highest interest rate because all of the purchase transaction I did last month were done based on “debit” card (with pin#). I called the bank, and was told all purchase transactions should be done based on “credit” to be qualified for the highest interest rate, which should be sort of “signature based” transaction. This is not mentioned in the web site, and I am wondering if any of you also encountered such confusion???
Thanks for helping!

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Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
Sorry to read of this problem. Some banks do require only the credit option. Usually the website specifically describes this. As you mentioned, this website does not make this distinction.

The credit option can be chosen by selecting credit when you use your debit card. If it doesn't give you an option, you can usually select cancel. You'll then pay without using your PIN. This should go through as credit rather than debit.

Banks make a little more from the transaction when you use the credit option so that's why some require this.

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Comment #6 by Anonymous posted on
Anonymous
Thanks so much for the above information. The good news is that Bank of Fayetteville has just informed me either "debit with pin#" or "credit" transaction is good for earning the highest interest rate, and they will be adjusting the interest earning for my last month statement.
This is also to remind myself again not to totally trust the computer, and always have check on the statement carefullt. Afterall, it is our money.

1
Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the update. Glad to read they accept either one.

BTW, I've heard that one advantage of the PIN option is that it gets processed faster. So if you're in a hurry to finish up your debit card usage requirements near the end of the month, you might want to use your PIN instead of the credit option.

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Comment #8 by Anonymous posted on
Anonymous
Nitpicking I suppose, but the top rate says 4.00% APY.

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Comment #9 by Anonymous posted on
Anonymous
Second tier and base rates have dropped: 0.50% and 0.15%.

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Comment #10 by Anonymous posted on
Anonymous
Top rate enormous drop today - down to 1.3% APY.

1
Comment #11 by Banking Guy (anonymous) posted on
Banking Guy
I think that 1.30% applies to their new Smart Savings Account that's intended to be linked to the Smart Checking Account.

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Comment #12 by Anonymous posted on
Anonymous
Yes you are correct Banking Guy. Sorry for the misinformation.

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Comment #13 by Anonymous posted on
Anonymous
I tried Friday and today to open an account on-line. I keep getting errors and the security code keeps changing without updating my page. Any suggestions?

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Comment #14 by Anonymous posted on
Anonymous
can somebody tell me procedure once the account application is accepted, do we need to notorize the signature card or just send them copy of drivers license is good enough.

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Comment #15 by Anonymous posted on
Anonymous
Their account opening procedure is painful. They require a notary acknowledgement which is very inconvenient.

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Comment #16 by Anonymous posted on
Anonymous
Rate drop to 2.75% per their website today

1