Update 10/24/09: The top rate has fallen to 3.01% APY.
First Community Bank has a reward checking account that pays 3.01% APY on balances up to $35,000 (0.50% for above) and refunds ATM fees if the following monthly requirements are met: 1) 10 check card transactions, 2) one direct deposit or ACH auto debit, and 3) receive electronic statements. If these are not met, the rate falls to 0.15%. There are no minimum initial deposit, minimum balance requirements or monthly service charges. The first order of checks is free.
It appears that they require you to come into a branch to open an account. Branches are located in the Alabama cities of Mobile, Chatom, Citronelle, Millry, Mt. Vernon, Saraland and Spanish Fort. The bank has been FDIC insured since 1934 (FDIC Certificate # 14720).
For other high yield reward checking accounts and to learn more about these accounts, please refer to my High Yield Checking website.
10/21/09: 3.01% APY up to $35K; 0.50% over $35K
05/22/09: 4.01% APY up to $35K
03/09/09: 4.50% APY up to $35K; 1.00% over $35K; 0.15% base rate
04/17/08: 5.01% APY up to $35K; 1.50% over $35K; 0.15% base rate