First Community Bank is offering a reward checking account called the Backbone High Yield Checking that pays 4.25% APY for balances up to $25,000 (0.25% for above) if the following monthly requirements are met: 1) 12 Visa debit card transactions, 2) one direct deposit, and 3) receive statements online. If these are not met, the rate falls to 0.10%. The minimum opening deposit is $100. Minimum balance of $1,000 is required each cycle to avoid the $7 per-cycle service charge
Update 11/08/09: The bank also offers an online savings account with a 1.50% APY as of 11/08/09. The yield applies to all balances without limit, and there are no monthly service fees.
Update 9/19/09: I don't see any more mention of refunds of ATM fees.
Update 9/19/09: The online application now accepts residents of the following states:
Florida, Tennessee, Virginia, West Virginia, North Carolina and South Carolina
The bank is headquartered in Bluefield, Virginia. It was established in 1934 and is FDIC insured (Certificate # 13012).
Other High Yield Reward Checking Accounts
For other reward checking accounts and for more information on these accounts, please refer to the following posts:
- reward checking overview and discussion
- reward checking accounts available nationwide
- reward checking accounts around the nation
09/19/09: Tristone merged into First Community Bank. Reward account renamed to Backbone High Yield Checking. New rate: 4.25% APY up to $25K, 0.25% over, 0.10% base
09/12/09: Features and rates located at bottom right of front page (click here for details)
11/14/08: 4.05% APY for up to $25K, 0.51% APY for above $25K.
09/16/08: 5.01% APY
02/24/08: 6.05% APY for up to $25K, 1.01% APY for above $25K (initial post)
Edit 11/08/09: ACH auto debit no longer an alternative for direct deposit.