Kansas State Bank has a reward checking account that pays 4.55% APY on balances up to $25,000 (0.50% for above) and refunds ATM fees (up to $25 per cycle) if the following monthly requirements are met: 1) 10 check card transactions, 2) one direct deposit or ACH auto debit, 3) receive electronic statements, and 4) access online banking. If these are not met, the rate falls to 0.25%. The minimum initial deposit is $100. There are no minimum balance requirements and no monthly service charges.
Update: Readers have reported being told that they are only opening accounts from out-of-state people who are planning to move to Kansas. I will follow up Monday to see how they changed their policies (which is common for small banks).
I just called the bank at their toll-free number (866-866-3KSB),
The first box of checks is only free if you're over 50. Checks are optional. Their online bill pay is free so you can use that instead.
I was told that this account has been available for the last couple of months. Hopefully, the high yield can last for awhile.
Branches are located in the Kansas cities of Wichita, Manhattan and Junction City. The bank has been FDIC insured since 1969 (FDIC Certificate # 19899).
For other high yield reward checking accounts and to learn more about these accounts, please refer to my High Yield Checking website.
03/05/09: 4.55% APY
04/11/08: 6.01% APY