All America Bank is offering a reward checking account called Ultimate Reward Checking that pays 5.25% APY on balances up to $10,000 (2.25% for above) and refunds ATM fees if the following two monthly requirements are met: 1) 10 check card transactions and 2) receive electronic statements. If these are not met, no interest is paid. There are no minimum balance requirements. One nice perk is that they offer free checks.
One thing I noticed from the bank's FAQs is that they allow customers to open multiple reward checking accounts. You would still have to meet the debit card usage requirement for the additional accounts, but this provides a way to exceed the $25K balance cap. Another thing I noticed in the FAQs is that they mention the 5.25% APY as of June 1, 2006. So this account may have a fairly long history.
Update 3/17/09: The account can be opened online by people in any state via the bank's internet division. Refer to this post for more details.
It appears a branch visit is required to open the account. Branches are located in Mustang and Oklahoma City, OK. The bank has been FDIC insured since 1969 (Certificate # 20093).
Thanks to the reader who emailed me info on this reward checking account.
For other high yield reward checking accounts and to learn more about these accounts, please refer to my High Yield Checking website.