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4.01% Reward Checking Account at an Illinois Bank (Riverside Community)

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Riverside Community Bank
Update 4/04/09: The yield has fallen to 4.01% APY. Refer to the bottom of the post for the rate history.

Riverside Community Bank has a reward checking account that pays 4.01% APY on balances up to $20,000 (1.01% for above) and refunds ATM fees (up to $20 per cycle) if the following monthly requirements are met: 1) 15 signature-based debit card purchases, 2) one direct deposit and 3) electronic statements. If these are not met, the rate falls to 0.25%. The minimum opening deposit is $25. There are no monthly service charges or minimum balance requirements.

This is one more bank with a $20K balance cap instead of $25K. This is becoming more common, and is probably a result of the current rate environment. Banks can reduce the interest they pay on these reward checking accounts by either lowering the rate or lowering the balance cap.

The bank does provide an online application, however, I was told by their banking rep that you are required to open a new checking account in person at one of their branches. Branches are located in the Illinois cities of Rockford and Machesney Park. The bank has been FDIC insured since 1995 (FDIC Certificate # 34076).

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

Rate History:
04/01/09: 4.01% APY up to $20K; 1.01% over
12/21/08: 5.01% APY, rate guarantee to July 2009 is no longer listed, debit card usage requirement increased from 12 to 15
10/25/08: 6.01% yield is guaranteed to July 1, 2009
04/11/08: 6.01% APY up to $20K; 1.51% over

Related Pages: Illinois, checking account, Riverside Community Bank, reward checking account

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Comments
5 Comments.
Comment #1 by Anonymous posted on
Anonymous
Banking Guy,
Top rate within their Personal Banking web page is 5.01% APY up to $20K, vs their FAQ section which still states 6.01% but no mention of a guarantee into 2009; 15 signature-based transactions to qualify for highest rate

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks. Other banks that had similar guarantees have made similar changes. I've updated the post. The tables will be updated later in the month.

1
Comment #3 by Anonymous posted on
Anonymous
Correct me, but I only see a requirement for direct deposit--no auto payment.

1
Comment #4 by Anonymous posted on
Anonymous
As with First Community and Galena, the top rates have dropped to: 4.01% APY up to $20K; 1.01% over. Base rate same.

1
Comment #5 by Rep (anonymous) posted on
Rep
The bank's rate for Cash Rewards Checking has dropped to 2.51%.  And had previously been at 3.03%.  The rates in this article are out of date.

1