Dedicated to Deposits: Deals, Data, and Discussion

High-Yield Reward Checking Account on All Balances and Open to All of Texas (City Bank)


City Bank (TX)

Update 9/14/10: The top yield has fallen to 2.75% APY. Please see bottom of the post for the rate history.

City Bank is offering a reward checking account that pays 2.75% APY on all balances and refunds ATM fees if the following monthly requirements are met:

  • 20 debit card purchases
  • 4 ACH debits or credits
  • one online bill payment
  • access your online account
  • receive electronic statements

If this is too much work, the bank has a secondary level with a yield of 1.00% APY if only the following monthly requirements are met:

  • 8 debit card purchases
  • one ACH debit or credit
  • access your online account

If neither of the above requirements are met, the rate falls to 0.16%. The minimum initial deposit is $50. There are no minimum balance requirements. Free checks are provided for life of the account.

This account appears to be available only for Texas residents. You can open this account online either at the bank's website ("apply now" button on the reward checking webpage) or at

$50 Signup Bonus (appears to have expired)

One advantage of using the bank's website to apply is that there appears to be a $50 bonus for new customers. In the application, it states the following:

If you are a NEW City Bank customer, you are entitled to a $50 signing bonus.

New City Bank Customers Only. Minimum account opening deposit of $50.00 required to receive cash bonus. Cash bonus will be given at account opening but is not considered part of opening deposit. Cash bonus is considered interest and subject to 1099 reporting.

Update 3/10/09: The bank also offers a savings account called Reward Plus that links to the reward checking account. As long as you qualify for the Reward Checking interest rate, your Reward Plus Account will earn that rate as well, with no additional qualifications.

Branches are located in several Texas cities including Lubbock, Dallas, El Paso and Plano. The bank has been FDIC insured since 1984 (FDIC Certificate # 25103).

Other High Yield Reward Checking Accounts

Even though the interest rate of City Bank's reward checking account is lower than the average and it requires many more debit card purchases, the lack of a balance cap may make it worthwhile for some. There are no reward checking accounts that I'm aware of that have yields of 5% or higher and with no balance caps. State Bank of Toledo and First Arkansas Bank & Trust used to offer 6%+ APY without a balance cap, but these have ended, and now both pay under 5% up to a balance cap.

There are some banks and credit unions that have $50K balance caps. The best one with national availability is at Coastal Federal Credit Union which offers a 5.01% APY (see post).

To find reward checking accounts in other areas of the nation or to learn more about these accounts, please refer to my High Yield Checking website.

Rate History:

  • 05/10/10: 2.75% APY for all requirements, 1.00% APY for secondary level of requirements
  • 10/21/08: 3.56% APY for all requirements, 1.51% APY for secondary level of requirements
  • 06/20/08: 4.07% APY for all requirements, 2.02% APY for secondary level of requirements

  Tags: Texas, checking account, reward checking account, City Bank (TX)

Related Posts

Comment #1 by Anonymous posted on
Concerning Texas City Bank, I used their relatively space-challenged “Contact Us” bank email on their website to ask them some questions (you can fit only 500 characters - not 500 words - in their little box). Those were:

Regarding your Rewards Checking -

1) I realize it has a “variable rate “, but do you have a policy of providing a lead time to customers before rate changes take effect? In other words, say you announce a lower rate today. Some banks will commit to customers that they will not actually implement the lower rate before "x" number of days have passed.

2) Any restrictions per day, per week or per month on the amount of money that can be ACH’ed into or out of your Rewards Checking account, as long as the ACH is initiated from another bank?
3) Your website says “*All Requirements (including, I assume, the 20 debit card transactions) must be met by the 3rd Wednesday of the Month.” Does that mean that: A) all requirements for a partcular month have to be met between the 3rd Wednesday of 1 month and the 3rd Wednesday of the next, or B) all requirements for a partcular month have to be met between the 1st of that month and the 3rd Wednesday of that month?
4) Is there a minimum dollar amount required for the debit card transactions?

5) I do not live in Texas. Is this account available to [my state] residents? Can I completely start, fund and if necessary transfer funds and close this account without having to visit a City Bank Texas branch?

I’ll post whatever information I get back from this bank.

Comment #2 by Anonymous posted on
I live in Tx and opened my account with just $50 and they deposited bonus right away.
Now I feel bad to have to close my account so soon.