Dedicated to Deposits: Deals, Data, and Discussion

High-Yield Reward Checking Account at Reliabank Dakota in South Dakota

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Reliabank Dakota

Update 10/19/10: The top rate has fallen from 4.07% to 3.50% APY.

Reliabank Dakota is offering a reward checking account called Ultimate Checking that pays 3.50% APY on balances up to $25,000 (0.75% for above) if the following monthly requirements are met:

  • 15 check card purchases
  • one direct deposit or ACH auto debit or bill pay
  • receive electronic statements

If these are not met, the rate falls to 0.10%. Minimum initial deposit is $50. There is no monthly service change or minimum balance requirement.

There's an online application. I contacted the bank on 10/07/2009, and I was informed that they do accept applications from outside their market area. Please note that small banks often change the availability of these accounts. So please check with the bank for the latest policy. Update 2/25/10: The webpage now states that they do not accept out-of-state applicants

Branches are located in the South Dakota cities of Estelline, Hayti, Hazel, Watertown and Hartford.

The bank has been FDIC insured since 1945 (FDIC Certificate # 16221).

Thanks to the reader who mentioned this checking account in the comments.

Other Reward Checking Accounts

This is my first South Dakota reward checking account. 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.

Can banks afford to pay this high interest rate for the long-term? I discuss the issue in this recent post.

Account History:

  • 10/19/10: 3.50% APY up to $25K; 0.75% above; 0.10% base
  • 07/14/10: debit card usage requirement increased from 12 to 15
  • 02/25/10: no longer available nationwide per bank's webpage
  • 10/07/09: online application and available nationwide per CSR
  • 01/22/09: 4.07% APY up to $25K; 1.01% above: 0.25% base

  Tags: South Dakota, Reliabank Dakota, checking account, reward checking account

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Comments
12 Comments.
Comment #1 by Anonymous posted on
Anonymous
Reliabank now has online account opening available. www.reliabank.com

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Comment #2 by Tuphat (anonymous) posted on
Tuphat
I filled-out online application, and called few days later to check status. CSR was helpful, said that welcome sig cards were being mailed to me. HOWEVER, she also said that they weren't doing ACH transfers to fund accts, despite the application indicating otherwise. I told her I'd send in a check w/ my sig cards. I am not a local.

P.S. Wow, this is probably smallest bank I've ever done business with. Check out photos of their main office and branches.

http://www.reliabank.com/estelline.html

http://www.reliabank.com/hayti.html

http://www.reliabank.com/hazel.html

1
Comment #3 by jackcrawfish (anonymous) posted on
jackcrawfish
4 star ratings at Bauer and Bankrate.com

When I applied yesterday, they PULLED A HARD EQUIFAX CREDIT INQUIRY for my DW and I.

I also opened a joint checking account via email exchange with [NAME REMOVED]. There was no need for a new internet application submission to obtain the joint account.

I was also able to add POD to both of our individual accounts via email exchange.

1
Comment #4 by jackcrawfish (anonymous) posted on
jackcrawfish
I inquired regarding the hard inquiry. I said:

I'm confused as to why a hard credit inquiry was required to open these deposit accounts. Since we are not applying for overdraft protection/lines of credit, I am puzzled as to why an Equifax credit report was obtained.

Is there any way I/we can request these hard inquiries be removed? could they be updated at Equifax as soft credit inquiries rather than hard?

Please advise as you are able.

In response, they said:
Banks are required to comply with many regulations, including the Bank Secrecy Act which addresses the procedures to follow for customer identification. When we began to offer on line accounts, we did an assessment of the risks involved in on-line account opening. Since we cannot view identifying documents during the on-line account opening process as our Customer Identification Policy required, we decided to obtain credit reports for on-line applicants. We use the report as an additional tool to identify the applicant and safeguard against identity theft. I hope that our inquiry has not caused a problem for you. We will check into the possibility of updating this inquiry to reflect the nature of the request.

1
Comment #5 by Henry (anonymous) posted on
Henry
At $153 M asset, it sure looks it.

1
Comment #7 by Anonymous posted on
Anonymous
They are no longer accepting online applications. =(

Just their 3 cd specials

1
Comment #8 by Bill from DKK (anonymous) posted on
Bill from DKK
Reliabank Dakota's reward checking account (Ultimate Checking) is no longer available nationwide. In-state applicants only.

www.reliabank.com/checking.html

 

 

 

 

2
Comment #9 by jackcrawfish (anonymous) posted on
jackcrawfish
I opened three accounts with them (spouse, self, joint).  On 4/27/2010, they closed my individual account and transferred teh reamaining balance to the joint account.  They cited 'one account per SSN' as the reason.  They will close my spouse's individual account because the joint account has my SSN as the primary and her SSN is secondary.  FYI...

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Comment #10 by jackcrawfish (anonymous) posted on
jackcrawfish
oops... I'm sorry about the above post.  I must have been drinking too much this morning...

I opened three accounts with them in December 2009 (spouse, self, joint).  On 4/27/2010, they closed my individual account and transferred the remaining balance to the joint account.  They cited 'one account per SSN' as the reason.  They will NOT close my spouse's individual account because the joint account has my SSN as the primary and her SSN is only secondary on that account.  FYI...

1
Comment #11 by jackcrawfish (anonymous) posted on
jackcrawfish
Just received an email from them.  They upped their required monthly number of transactions from 12 to 15 per month.  They also added IDTheftProtection for the primary account holder.

1
Comment #12 by jackcrawfish posted on
jackcrawfish
They lowered their rate....

When we started our Ultimate Checking account two years ago, some said it was a teaser rate, but we believe we have proven that it was not a teaser rate.  As with many things over the last two years, the economy has put a lot of pressure on our ability to hold the 4.07% Annual Percentage Yield (APY). Therefore, effective October 15, our Ultimate Checking rate will be changing to

3.50%APY(3.45% rate) for balances between one penny and $25,000, and 0.75%APY on all amounts above $25,000 when qualifications are met. Base rate will continue to be at .10%APY.

2
Comment #13 by Anonymous posted on
Anonymous
Effective today we have had to drop the rate we are paying on your Ultimate Checking Account.  We hope this is the last time we will need to adjust rates in the near future.  Effective today the rates are:

            Daily Balance                                                                  Rate             APY*

 $0.01-25,000.00
  2.81%
 2.85%
 
 $25,000.01 and up
  0.75%
 0.75%
 
If You Do not meet account requirements all balances
 0.10%
 0.10%

 

  $0.01-25,000.00

  2.81%

2.85%

  $25,000.01 and up

  0.75%

0.75%

If You Do not meet account requirements all balances

0.10%

0.10%


1