3.50% Reward Checking Account at M&F Bank - Branches in MS, AL, TN & FL

Update 5/31/09: The yield has fallen to 3.50% APY. Refer to the bottom of the post for the rate history.

M&F Bank has a reward checking account called Summit Checking that pays 3.50% APY on balances up to $25,000 (1.25% for above) and refunds ATM fees (up to $25 per cycle) if the following monthly requirements are met: 1) 12 debit card transactions, 2) one direct deposit or ACH debit, 3) log into online banking, and 4) receive electronic statements. If these are not met, the rate falls to 0.10%. The minimum opening deposit is $100. There are no monthly service charges.

The 2.01% yield for balances over $25,000 is higher than the usual reward checking account. In today's rate environment, it's above the rates of many online savings accounts.

Even though they have an online application, they require customers to come into a branch to finalize the account opening process. Branches are located in Mississippi, Alabama, Tennessee and the Florida Panhandle. The bank has been FDIC insured since 1934 (FDIC Certificate # 9361). It has $1.65 billion in assets which makes it one of the larger banks that are offering reward checking.

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

Rate History:
06/01/09: 3.50% APY for up to $25,000, 1.25% for above, 0.10% base rate
01/05/09: 4.01% APY for up to $25,000, 2.01% for above
06/04/08: 4.50% APY for up to $25,000, 2.50% for above
04/14/08: 5.25% APY for up to $25,000, 3.25% for above, 0.25% base rate

Tags: Alabama, Tennessee, Mississippi, checking account, reward checking account, Florida