High-Yield Reward Checking Account at an Iowa Bank (Gateway State)

Update 10/21/10: The top yield has fallen to 3.51% APY. Refer to the bottom of the post for the rate history.

Gateway State Bank has a reward checking account that pays 3.51% APY on balances up to $25,000 (1.15% for above) and refunds ATM fees if the following monthly requirements are met:

• 10 debit card transactions
• one direct deposit or ACH debit
• receive electronic statements

If these are not met, the rate falls to 0.25%. The minimum initial deposit is $100. There are no monthly service fees or minimum balance requirements.

The bank appears to require a branch visit to open an account. Branches are located in Clinton, Goose Lake and Charlotte, Iowa. The bank has been FDIC insured since 1934 (FDIC Certificate # 9293).

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

Rate History:

• 10/21/10: 3.51% APY up to $25K; 1.15% over $25K (had to call bank)
• 1/21/09: 4.01% APY up to $25K; 2.01% over $25K
• 8/10/08: 5.01% APY up to $25K; 2.50% over $25K
• 5/04/08: 6.01% APY up to $25K; 3.00% over $25K; 0.25% if requirements not met