Update 4/08/09: The bank has temporarily stopped accepting new applications.
Bank of the Wichitas has a reward checking account that pays 4.00% APY on balances up to $10,000 (1.00% for above) and refunds ATM fees worldwide if the following monthly requirements are met:
- 10 VISA CheckCard purchases
- receive statements electronically
The bank has a brave marketing strategy by offering this online reward checking account at the Redneck Bank. I'm sure this will attract attention, but I'm not sure how many people will be comfortable with opening an online account at the Redneck Bank.
In addition to this redneck rewards checking, they're also offering the mega money market account that currently pays 3.10% APY and the you're approved checking that's intended for people with bad credit. Details of these accounts are described in the Deposit Account Agreement (pdf). Update 4/22/09: Starting 5/05/09, the mega money market rate is scheduled to drop to 2.00% APY for up to $35K, 1.00% for above.
The online application for these accounts uses the Cashedge service. The application allows for electronic funding which is typical for Cashedge, and it's available to people in any state. Once the account is opened, bank-to-bank ACH transfers are limited to $1,500 a day (per FAQ). The best way to get larger amounts into and out of this account will probably be to use another online bank to push and pull funds.
Redneck Bank is the Internet Banking Division of Bank of the Wichitas which is based in Oklahoma. Bank of the Wichitas has been FDIC insured since 1934 (FDIC Certificate # 4198).
The bank has some good financial ratings for soundness: 3.5 stars (good) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 9/30/08 data.
Thanks to the reader who emailed me news of this bank.
Other Reward Checking Accounts
Update 1/05/09: If you don't want to bank at Redneck Bank, you have two alternatives. Evantage Bank (see post) and AmericaNet Bank (see post) have the same accounts, the same rates and the same online banking features. All three banks are owned by the same family.
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.
05/05/09: 4.00% APY up to $10K; 1.00% APY over $10K / MMA 2.00% APY up to $35K; 1.00% over
04/08/09: Bank has temporarily stopped accepting new applications
03/12/09: 5.25% APY up to $10K; 2.25% APY over $10K; 0.25% base rate / MMA 3.10% APY up to $35K; 1.65% over
01/04/09: 5.25% APY up to $25K; 2.25% APY over $25K; 0.25% base rate / MMA 3.10% APY
Edit 4/04/09: Updated ACH limits.