Update 1/22/10: The top rate has fallen to 4.00% APY.
Franklin Bank & Trust Company is offering a reward checking account called Free Bonus Checking. It pays 4.00% APY on balances up to $25,000 (1.00% for above) and refunds ATM fees nationwide if the following monthly requirements are met:
- 12 debit card purchases
- one direct deposit or automatic payment
- receive electronic statements
If these are not met, the rate falls to 0.25%. Minimum initial deposit is $100. There is no minimum balance requirement, and online Billpay is free.
It appears a branch visit is required to open the account. Branches are located in the Kentucky cities of Franklin and Bowling Green.
The bank has been FDIC insured since 1958 (FDIC Certificate # 17937).
Thanks to the reader who mentioned this account in the comments.
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.
1/22/10: 4.00% APY up to $25K
1/26/09: 5.00% APY up to $25K; 1.00% over; 0.25% base