Update 3/18/2010: The rates have fallen. Please refer to the rate history below.
Crescent State Bank is offering a rewards checking account that pays 3.01% APY on balances up to $25,000 (0.75% for above) and refunds ATM fees nationwide up to $25 if the following monthly requirements are met:
- 10 debit card purchases
- 1 direct deposit or automatic debit
- accept e-statements
If these are not met, the rate falls to 0.05%. Minimum initial deposit is $100. There is no monthly service charge and no minimum balance requirement.
It appears that a branch visit is required to open an account. Branches are located in several North Carolina cities including Raleigh, Wilmington, Pinehurst, Sanford and Clayton.
The bank has been FDIC insured since 1998 (FDIC Certificate # 35006).
The News & Observer has an article on Crescent State Bank and this reward checking account. It was also reported that the bank is one of only two Triangle-based banks to receive federal money as part of the Treasury's bailout program. The bank intends to use the capital to create a discount mortgage program.
Thanks to the reader who commented on this reward checking account.
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.
How can banks offer 5% checking accounts? I discuss the issue in this recent post.
- 03/18/2010: 3.01% APY up to $25K; 0.75% over; 0.05% base
- 09/11/2010: 3.75% APY up to $25K; 1.01% over; 0.10% base
- 05/24/2010: 4.51% APY up to $25K
- 01/21/2009: 5.01% APY up to $25K; 1.01% over; 0.25% base