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1.22% Reward Checking Account at a Colorado Bank (New Frontier)


New Frontier Bank
Update 4/10/09: The bank has been closed by regulators. Please refer to this post for more details.

Update 3/10/09: The top rate has plummeted to 1.22% APY. See bottom of post for the rate history.

New Frontier Bank has started a reward checking account it calls e-Power Checking. It pays 1.22% APY on balances up to $50,000 (and also 1.22% for above) if the following monthly requirements are met: 1) 12 debit card purchases, 2) one automatic payment or direct deposit, 3) receive electronic statement, and 4) log into online banking. If these are not met, the rate falls to 0.50%. There are no minimum balance requirements or monthly service charges. Unlike the typical reward checking account, it appears that ATM fees worldwide will always be reimbursed regardless of meeting the above requirements.

The bank also has a history of offering some nice CD specials.

The checking account page states that only in-state accounts are accepted. Readers have also reported being told that a branch visit is required.

Branches are located in Colorado cities of Greeley, Windsor and Longmont which are located north of Denver. The bank has been FDIC insured since 1998 (FDIC Certificate # 34881). It has a 2 out of 5 star rating (below peer group) at based on 9/30/07 data.

Rate History:
03/09/09: 1.22% APY for up to $50K; 1.22% APY above $50K
02/13/09: 1.25% APY for up to $50K; 1.25% APY above $50K; 0.50% if req's not met
01/14/09: 4.61% APY for up to $50K; 4.61% to 2.33% APY for $50K to $100K; 0.50% if req's not met
11/20/08: 4.61% APY
9/02/08: 5.01% APY
6/26/08: 5.26% APY
2/9/08: Initial top yield was 6.26% APY. 0.76% if req's are not met. Bank had a $100 Pre-Paid Visa card bonus for opening this checking account. Offer ended 2/29/08.

Edit 1/19/09: Updated ATM reimbursement policy.

  Tags: New Frontier Bank, Colorado, checking account

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Comment #1 by Anonymous posted on
Yes, it is true that an office visit is necessary to open an account. I contacted them hoping to apply online, but I was told an account must be opened in person. Oh well...

Comment #2 by Anonymous posted on
Rate is down to 5.01% for up to $50,000.00

On 09/02/08

Comment #3 by Anonymous posted on
Second tier rate is 2.33% APY (based on balance of $100K); if requirements not met the rate is 0.5% APY.

Comment #4 by Anonymous posted on
Correct me, but it appears the ATM fees are ALWAYS reimbursed, whether requirements are met or not.

Comment #5 by Anonymous posted on
The top rate (read that all balances rate) is now 1.22% APY.

Comment #6 by Anonymous posted on
Since the bank got closed about a month after dropping the rewards checking rate to 1.22%, I think we need to add this to the list of signs that your bank might be failing. If your rewards checking rate drops way below market, it may be time to get out of the bank entirely!