4.01% Reward Checking Account at First Community Bank in IL/IA

Update 4/04/09: The top yield has fallen to 4.01% APY. Refer to the bottom of the post for the rate history.

First Community Bank is offering a rewards checking account that pays 4.01% APY on balances up to $20,000 (1.01% for above) and refunds ATM fees up to $20 per cycle if the following monthly requirements are met:

• 15 signature-based debit card purchases
• one direct deposit
• receive electronic statements

If these are not met, the rate falls to 0.25%. The minimum initial deposit is $25. There are no monthly service charges or minimum balance requirements.

The bank has a limit of 2 accounts per household. So this will limit the total balance you can have earning 6.01% to $40K. Many banks don't restrict the number of reward checking accounts that can be opened. You still have to meet the requirements for each account.

At the bottom of the checking account page it states that it is accepting accounts only from its local service areas. Branches are located in Keokuk, Iowa and Carthage, Illinois. The bank has been FDIC insured since 1953 (FDIC Certificate # 30652).

Other Reward Checking Accounts

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:
09/12/09: debit card requirement increased from 12 to 15
04/01/09: 4.01% APY up to $20K; 1.01% over
12/06/08: 5.01% APY
08/07/08: 6.01% APY up to $20K; 1.51% over

Edit 2/10/09: ACH debit is no longer listed as a direct deposit alternative

Tags: Illinois, Iowa, checking account, reward checking account