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.
- 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