2.32% Reward Checking Account at First Federal Bank of California

Update 11/08/09: The top yield has fallen to 2.32% APY. Refer to the bottom of the post for the rate history.

First Federal Bank of CA is offering a reward checking account it calls Power Rewards Checking. It has a yield of 2.32% APY on balances up to $25,000 (1.00% for above) and it provides refunds of ATM fees up to $2 per transaction if the following monthly requirements are met:

• 18 debit card point-of-sale purchases
• 4 online transactions that can include bill pay, ACH or direct deposit

If these are not met, the rate falls to 0.25%. There are no minimum balance requirements or monthly service fees. Online bill pay is free.

It appears a branch visit is required to open an account. Branches are located throughout the Los Angeles metro area. With assets of over $7 billion, it's one of the larger banks to offer a reward checking. The bank has been FDIC insured since 1935 (FDIC Certificate # 28536).

Other Rewards Checking Accounts

First Federal's reward checking requires more work and pays less than the average reward checking. However, for those who want a reward checking in Southern California, there aren't too many alternatives. A SoCal bank offering a reward checking that is currently paying a little more than First Federal and requires less work is Community West Bank (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:
11/08/09: 2.32% APY
10/21/09: 2.27% APY
10/01/09: 2.57% APY
08/06/09: 2.78% APY
05/14/09: 2.98% APY
05/01/09: 3.04% APY
04/06/09: 3.13% APY
03/09/09: 3.23% APY
12/31/08: 3.99% APY, 3 bill-pay and direct deposit requirement replaced with online activity that can now be any mix of 4 online transactions: bill pay, ACH or direct deposit.
06/23/08: 4.16% APY (initial post)

Tags: California, checking account, reward checking account