2.75% Reward Checking Account at a Philadelphia Bank (Allegiance)

Update 2/19/10: The top yield is scheduled to fall to 0.85% APY effecitve 3/01/10. See bottom of post for the rate and cap history.

Allegiance Bank is offering a reward checking account that pays 2.75% APY on balances up to $250,000 (1.01% for above) and refunds ATM fees if the following monthly requirements are met:

• 10 debit card transactions
• One direct deposit or ACH auto debit
• Receive electronic statements

If these are not met, the rate falls to 0.15%. The minimum opening deposit is $100. After it's opened, there are no minimum balance requirements and no monthly service charges. Online Billpay is free.

Update 2/16/10: The account can now be opened online by residents of PA, NJ and DE. Refer to the deposit rates page for more details. It can also be opened at a branch. Branches are located in Philadelphia, Pennsylvania and its suburbs (Bala Cynwyd, Berwyn, Bridgeport/King of Prussia, Old City, and Worcester). The bank has been FDIC insured since 1999 (FDIC Certificate # 35078).

For other high yield reward checking accounts and to learn more about these accounts, please refer to my High Yield Checking website.

Rate History:

03/01/10: 0.85% APY (ending debit card usage requirements)

05/01/09: 2.75% APY up to $250K
04/16/09: 3.00% APY up to $250K; 1.01% over; 0.15% base rate
03/29/09: 3.00% APY up to $250K
03/04/09: 3.25% APY up to $250K; 1.01% over $250K
03/01/09: 3.25% APY up to $50K
01/25/09: 3.75% APY up to $50K; 1.01% over $50K;
11/03/08: 3.75% APY
09/23/08: 4.00% APY
04/24/08: 5.00% APY up to $50K; 2.10% over $25K; 0.20% if req's not met

Edit 03/05/09: $30 ATM fee refund limit no longer listed on website