Update 10/15/09: The top yield has fallen to 2.63% APY. See bottom of the post for the rate history.
Community National Bank is offering a reward checking account that pays 2.63% APY on balances up to $25,000 (1.16% for above) and refunds ATM fees (up to $25 per month) if the following monthly requirements are met: 1) 12 Point of Sale 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 monthly service charges.
It appears that a branch visit is required to open the account. Branches are located in Rossville, Flintstone and Ringgold which are located in Northwest Georgia, just south of Chattanooga, Tennessee. Additional branches are located in the Tennessee cities of Dayton, Spring City and Soddy Daisy. The bank has been FDIC insured since 1964 (FDIC Certificate # 19272).
For other high yield reward checking accounts and to learn more about these accounts, please refer to my High Yield Checking website.
Update 9/07/09: According to the FDIC, on 2/28/2009 Rossville Bank "Merged without Assistance into Acquiring institution: Community National Bank."
10/07/09: 2.63% APY
04/08/09: 3.33% APY
11/22/08: 4.22% APY
04/17/08: 5.25% APY (initial post)
Edit 1/30/09: Updated reward checking URL.