American Trust Bank of East Tennessee is offering 3.00% APY on its President's Club Checking Account. The 3% applies to balances from $5,000 to $50,000. Under and over this balance, the yield is 1% APY. The minimum initial deposit is $5,000, and there is no monthly service charge.
For those who want some decent interest on a checking account without the hassles of a reward checking account, this looks like a good deal. This could be just a teaser rate which will have a large drop in a few months, but at least there are no monthly service charges so you won't have to maintain a large balance in a low-rate account to avoid fees.
Branches are located in the Tennessee cities of Knoxville, Lenoir City and LaFollette. The bank is a member FDIC (FDIC website is currently down, so I'm unable to give its certificate number or link to financial stats).
Thanks to the reader who emailed me info on this checking account.