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High-Yield Reward Checking Account at a Pennsylvania Bank (Malvern Federal Savings)

POSTED ON BY

Malvern Federal Savings Bank

Update 5/2/2011: The Reward Plus Checking account is being discontinued effective June 1, 2011.

Malvern Federal Savings Bank has a reward checking account that pays 1.00% APY on balances up to $35,000 (0.51% for above) and refunds ATM fees worldwide (up to $25 per cycle) if the following monthly requirements are met:

  • 10 debit card point of sales transactions
  • one direct deposit or ACH debit
  • access online banking


If these are not met, the rate falls to 0.10%. The minimum opening deposit is $200. There are no monthly service charges or minimum balance requirements.

One more perk is that they offer a $10 bonus for your old bank's checks or debit card.

Update 4/06/09: As stated in the CheckingFinder application, this account is now limited to residents of the following states: Delaware, Maryland, New Jersey, New York, Pennsylvania, West Virginia, Ohio. As of 4/06/09, residents of those states can apply using the online application at this CheckingFinder page.

Branches are located in Chester County which is just northwest of Philadelphia, Pennsylvania. The bank has been FDIC insured since 1947 (FDIC Certificate # 27861).

Thanks to the reader who mentioned this reward checking account in the comments.

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

History:

  • 12/31/10: 1.00% APY up to $35K
  • 03/15/10: 1.50% APY up to $35K
  • 11/12/09: 2.00% APY up to $35K
  • 08/26/09: 3.00% APY up to $35K; 0.51% over; 0.10% base
  • 06/10/09: 3.50% APY up to $35K
  • 04/06/09: Limited to residents of certain states
  • 03/17/09: Available nationwide via CheckingFinder
  • 04/27/08: 5.01% APY up to $35K; 1.01% over; 0.20% base
  Tags: New York, Malvern Federal Savings Bank, Pennsylvania, Maryland, New Jersey, Delaware, West Virginia, Ohio, checking account, reward checking account

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Comments
28 comments.
Comment #1 by Anonymous posted on
Anonymous
I believe that this is now available nationwide - see CheckingFinder.

1
Comment #2 by Anonymous posted on
Anonymous
Apparently, there's no ACH transfer at this bank (according to customer rep). Which is strange, because one of the requirements is "one ACH debit".

Customer rep said the requirement could be satisfied by "having your utility company debit the account every month," but that there was no way of transferring money out except for wire transfer... And no way of transferring in except for sending a check.

Bummer.

1
Comment #3 by Anonymous posted on
Anonymous
this is not available nationwide. when you go to apply it says:

To be eligible for this account, you must live in one of the following states:

* Delaware
* Maryland
* New Jersey
* New York
* Pennsylvania
* West Virginia
* Ohio

1
Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Thanks. I've updated the post.

Banks have been changing their policies on availability over the last several months. Many have reduced the availability after experiencing high demand. I have more on this issue in this post. We'll have to monitor Malvern and see if they reduce the availability to fewer states in the future.

1
Comment #5 by Anonymous posted on
Anonymous
Has anyone in New York opened this account? How DO you satisfy the ACH transfer requirement?

1
Comment #6 by barry (anonymous) posted on
barry
i opened this malvern acct 7 weeks ago and live in upstate NY. Because i work for the NY State government I wasn't sure my DD would get there within the 30 day statement period, so i did all debit(10)purchases, small amounts(less then $6.00) and paid my electric bill thru their online pay system. I then called to verify and was told by a very friendly rep that it is an ACH withdrawal. (btw, my DD just started after 4 weeks! barrytuneup@yahoo.com

1
Comment #7 by Anonymous posted on
Anonymous
Barry,

Typically, Billpay using their sytem will not count toward the ACH requirement; one needs to initiate it from outside sources. Be careful if it was just stated by a CSR.

1
Comment #8 by Anonymous posted on
Anonymous
you can initiate ACH from other institution after setup the link from other bank. That is how I met the requirement. However, I am not it appears that there is no electronic statement and I am not sure the paper statement will keep coming. I am a NJ resident.

1
Comment #9 by Anonymous posted on
Anonymous
I have had this account for about 2 months. They do not have electronic statements. I received a paper statement both months...and I live out of state.

1
Comment #10 by Matthew (anonymous) posted on
Matthew
They do have electronic statements. However, they're not automatic, not required for the high rate, and difficult to find. After logging into your account, click on Products and Services in the bar on the top. There is a section on the next page titled Online Statements. Make sure your account is selected and press Enter. It will say you are being redirected to an external site. Say OK. Then, go to User Settings, choose Accept, click Next, enter your e-mail address again (twice), press Next again, then press Accept. This will sign you up for electronic statements

1
Comment #11 by Matthew (anonymous) posted on
Matthew
Did anyone get the $10 for old checks/debit card? Is there a form you send in, did you take them to the bank in person, etc.? There are no details on their website and I did not receive any with the account materials in the mail either.

1
Comment #12 by M (anonymous) posted on
M
I received the $10 for my old debit card. I had to send it to the attention of Scott Sterling at the main branch. The $10 was credited to my account in about 8 days after I mailed from California.

1
Comment #13 by Anonymous posted on
Anonymous
Matthew, thanks for the info about online statements.

1
Comment #14 by Anonymous posted on
Anonymous
Do they give you the first month's reward rate without doing the 10 debits?

1
Comment #15 by Anonymous posted on
Anonymous
Yes, the first month qualifies for rewards automatically.

1
Comment #16 by Anonymous posted on
Anonymous
After registering for online statements and getting a message that no statements were available, I was told via email by CSR that electronic statements would be available in a few months. Until then they will be mailed.

1
Comment #17 by Anonymous posted on
Anonymous
Hard pull?

1
Comment #18 by Anonymous posted on
Anonymous
live in PA and was turned down. does that mean i'll be turned down by others? (old credit problem)

1
Comment #19 by Anonymous posted on
Anonymous
For the "debit card POS transactions" do these need to be PIN-based, signature-based or either?

1
Comment #20 by Matthew (anonymous) posted on
Matthew
Rate has fallen to 3.5%

1
Comment #21 by Anonymous posted on
Anonymous
the rate is now 3.5% but they give it to you up to 35K. The checking finder web site has a great widget.enter your average balance and it will give you the interet figure. The only bank that beats malvern is First Arkansas, but sincei have 3 reward checking accts at malvern ill stay put. I figure theywill not drop rates again too soon.

1
Comment #22 by DP (anonymous) posted on
DP
Do u know how I can make a ACH debit to meet the requirement? I tried to set up automatic bill pay but it takes 2 months. Is there a faster way? My other bank has an option to transfer funds to external accounts. Will it be considered as direct deposit?

1
Comment #23 by Anonymous posted on
Anonymous
dp, just set up a payment thru the malvern bill pay page. Put in all your credit card or bill to paid info on their page and the date you want it paid(usually can be done in 24 hours) and thats it!! I have 3 rewards accts with them and it works all the time!. Click on payment manager from your acct page and then click on view and pay bills and it will take you to the payment center where you fill in all info. The system is a little slow in loading pages but its still good. if you want an easier to use reward checking payment page try FNCB in Pa. Theiir payment page is much easier then malvern, buy t you only get interest up to 25K. barrytuneup@yahoo.com

1
Comment #24 by Tomas (anonymous) posted on
Tomas
Down to 3% as of Aug 26, 2009

1
Comment #25 by M (anonymous) posted on
M
Malvern charges a wire fee:
$10 Domestic Incoming
$15 Foreign Incoming
$15 Domestic Outgoing
$50 Foreign Outgoing
There is no fee for ACH transfer from Malvern Federal. However, they can do just one-time-only initiation of ACH on their end.

1
Comment #26 by Anonymous posted on
Anonymous
Malvern is down to 2.00% APY up to $35K; 0.51% over; 0.10% base

1
Comment #27 by Anonymous posted on
Anonymous
Another big drop; copycat of Charter.

1
Comment #28 by Anonymous posted on
Anonymous
Rate dropped to 1.5%.

1