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3.00% Reward Checking Account at the Internet Bank CBDirect

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Update 3/05/10: Centennial Bank has been closed by regulators, and the FDIC was not able to find a buyer. Please refer to the FDIC press release for more details.

Centennial Bank has a new internet division called CBDirect Bank which offers a reward checking account and an online savings account. The reward checking account has an APY of 3.00%, and it applies to all balances. Details of this account are provided at the bank's Smart Checking Account page. The following monthly requirements must be met to receive the high yield:

  • 10 Visa Check Card purchases
  • one direct deposit
  • pay at least 4 bills using the online bill payment

If these are not met, the rate falls to 0.50% APY. Minimum initial deposit is $100, and there are no monthly fees. Online bill pay is free. There doesn't seem to be any refunds of ATM fees, but they do provide free access to the Allpoint ATM network.

The savings account appears to be like a typical online savings account. The APY is 1.50% as of 12/18/09 (had been 2.80%). Minimum balance to open is only $1. There doesn't appear to be any monthly fees or minimum balance requirements.

The online applications for these accounts use the Cashedge service. The application appears to allow electronic funding which is typical for Cashedge. The Smart Checking page states that 3 free bank-to-bank transfers per month are allowed. If it's through Cashedge, transfers will probably be a little slow.

Update 1/05/09: I called the bank today and confirmed that the account is available to people in any state. Also, the top yield applies to all balances without any cap. On the downside, I was told they do a hard credit pull. The reward checking account has been offered since August 2008 with this same yield.

CBDirect is an online division of Centennial Bank which is based in Utah. The bank has been FDIC insured since 1997 (FDIC Certificate # 34430).

Thanks to the reader who mentioned CBDirect in the finding-the-best-deals post.

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:
03/20/09: 3.00% APY if requirements met; 0.50% APY if requirements not met
02/01/09: 3.00% APY if requirements met; 0.75% APY if requirements not met
01/04/09: 4.00% APY if requirements met; 1.26% APY if requirements not met

  Tags: Utah, checking account, savings account, reward checking account

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Comments
10 comments.
Comment #1 by Anonymous posted on
Anonymous
Please don't confuse this Bank with CNB Bank Direct in Ohio. They were running a 4% savings account some time ago with a 6 month rate guarantee.

OC Steve

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
That's a good point. The name is very similar.

1
Comment #3 by Anonymous posted on
Anonymous
Yes, it is easy to confuse the two. The initials are not the same though - one is CNB (Citizens National Bank) and the other is CB (Centennial Bank). CB is based in the Ogden Utah area.

1
Comment #4 by Anonymous posted on
Anonymous
As of 1/23/09 the top rate has fallen to 3.01% APY.

1
Comment #5 by Anonymous posted on
Anonymous
Oops! Make that 3.0% APY top rate and 0.75% if requirements not met.

1
Comment #6 by Anonymous posted on
Anonymous
If do NOT meet requirements, the rate is now 0.50%.

1
Comment #7 by Anonymous posted on
Anonymous
FYI - This account is available only for US citizens. I got declined because I am permanent resident.

1
Comment #8 by Anonymous posted on
Anonymous
"Paper checks are not issued on accounts opened online."

1
Comment #9 by ElinorD posted on
ElinorD
I'm new here and was thrilled to find an account paying 3% that had no maximum. I tried to open an account today and was declined. I've never been turned down for anything like this before. I have great credit. CBDirect's csr suggested I request a report from Efunds to learn more about why I was declined. I ordered that and it's supposed to be mailed to me in a few days. Anyone else have a similar experience?

1
Comment #10 by Adam (anonymous) posted on
Adam
Thank God for internet banking, I say. I have three very active accounts, three very active children and one very time-consuming job, so going to the bank became almost impossible for me to find the updated bank index. But, nowadays we have an iphone and do most our banking

1