Update 6/17/10: The top rate has fallen to 1.10% APY, and the account is no longer available nationwide. Refer to the bottom of the post for the account history.
First City Bank is offering a rewards checking account that pays 1.10% APY on all balances and refunds ATM fees (up to $25 per month) if the following monthly requirements are met:
- 10 check card (POS) purchases
- one ACH debit or direct deposit
- receive eStatements and be enrolled in online banking
If these are not met, the rate falls to 0.10%. Minimum initial deposit is $100. There is no monthly fee. One perk is the first order of checks is free.
There's an online application, and the bank is currently allowing people from any state to apply. After the application is submitted, they'll call you to verify your identity. Then they'll send you the forms in the mail for your signature. Please contact the bank for more details. They have a toll-free number (888) 244-5151.
The bank is based in Fort Walton Beach, Florida. It has been FDIC insured since 1948 (FDIC Certificate # 16748).
Thanks to the reader who sent me email 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. Refer to this page to find reward checking accounts available nationwide. Although there are many nationwide reward checking accounts with rates higher than 3.51%, most have balance caps of $25K.
06/17/10: Applications no longer available nationwide
02/??/10: 1.10% APY on all balances; 0.10% base
10/22/09; 3.01% APY up to $25K; 1.25% over; 0.10% base
02/25/09: 3.51% APY up to $50K; 1.01% over; 0.26% base