Update 7/22/10: The top yield has fallen to 2.76% APY. Refer to the bottom of the post for the rate history.
Texas Citizens Bank has a reward checking account that pays 2.76% APY on balances up to $25,000 (1.00% for above) and refunds ATM fees if the following monthly requirements are met: 1) 12 non-ATM debit card transactions, 2) 3 bill payment transactions using TCB Online Banking, and 3) receive electronic statements. The minimum initial deposit is $100. One nice perk is that it offers free checks.
Update 6/04/10: The bank offers a reward checking account called Reward Plus that has a higher rate of 5.01% APY. The only extra requirement is direct deposit. All other features are the same.
The bank is listed at CheckingFinder when you enter in several Texas zip codes. So if you can find this bank when you search on CheckingFinder, you should be able to open this account online.
Branches are located in Houston and Pasadena, Texas. It's a new bank that was established in 2006. It's a member FDIC (Certificate # 58319).
For other high yield reward checking accounts and to learn more about these accounts, please refer to my High Yield Checking website.
- 07/22/10: 2.76% APY up to $25K; 0.50% over (no DD)
- 06/04/10: 4.76% APY no DD, 5.01% APY w/DD (4 ACH requirements replaced with 3 online bill payments)
- 01/12/09: 4.76% APY
- 12/07/08: 5.01% APY
- 04/18/08: 5.26% APY up to $25K; 1.00% over
Edit 8/23/09: Added info from reader regarding the 4 ACH requirements.