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5.01% Reward Checking Account at Founders Bank in Texas

POSTED ON BY

Founders BanK
Update 8/08/09: This account is no longer available nationwide. Only Texas residents are allowed to apply.

Founders Bank is offering a reward checking account called Kasasa Cash. The account offers the following rates and features if certain monthly requirements are met:
  • 5.01% APY on balances up to $10,000
  • 2.25% on balances over $10,000
  • 0.05% base rate if qualifications are not met
  • Refunds all ATM fees nationwide
The monthly requirements include:
  • 10 debit card purchases
  • One direct deposit or automatic payment
  • Access online banking
  • Receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • $100 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
  • Free Online Bill Pay
The bank has an online application at the Kasasa.com website which is another version of CheckingFinder.com. The online application only accepts zip codes from Texas.

Founders Bank is located in Sugar Land, Texas. The bank has been FDIC insured since 2007 (FDIC Certificate # 58710).

Thanks to the reader who emailed me info on this bank.

Other Reward Checking Accounts

The $10K balance cap for the top rate is low for reward checking accounts. However, the rates (for both below and above this cap) are better than average.

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.

  Tags: Founders BanK, Texas, checking account, reward checking account

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Comments
17 Comments.
Comment #1 by Anonymous posted on
Anonymous
Is it FDIc insured?

1
Comment #2 by Anonymous posted on
Anonymous
This "kasasa" thing is also newly available at at least 1 other bank - First Arkansas Bank and Trust, which has had Rewards Checking for some time. In the case of that bank (FABaT) the kasasa terms are different, and in some ways are similar to the terms of their Rewards Checking.
Back to Founder's Bank - I'm sorry, I just inherently do not like or completely trust a bank where you go to its homepage, their Rewards Checking is featured prominently on that page, but you then have to drill down 2 additional levels and read a bunch of stuff you really don't need, to finally find that the maximum balance for the high yield is a paltry $10K. I'm glad BankDeals sifts through some of this stuff for us, but I still don't like this bank.

1
Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
About this account being FDIC insured, at the bottom of Kasasa.com's website it states:

Accounts returned in search insured by: FDIC, NCUA

Note, FDIC covers banks and NCUA covers credit unions.

1
Comment #4 by Anonymous posted on
Anonymous
Yes, I called the bank this morning and they confirmed it is FDIC insured even though it does
not show on their homepage.
I think it is still better than redneck which also has 10k limit with lower apy.

1
Comment #5 by Sergey (anonymous) posted on
Sergey
Is there a hard pull?

1
Comment #6 by Anonymous posted on
Anonymous
Just found this bank failed...
http://www.bankrate.com/finance/savings/2009-list-of-failed-banks.aspx

1
Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
Note, the Founders Bank that failed earlier this month is different than this Founders Bank. The one that failed was based in Illinois. They too had a reward checking account. I have info on the Illinois bank and its failure at this post.

1
Comment #8 by Anonymous posted on
Anonymous
Not available nationwide anymore as of end of July 2009. :-(

1
Comment #9 by Anonymous posted on
Anonymous
$10,000, chicken feather!

SKIP IT!

1
Comment #10 by Anonymous posted on
Anonymous
Effective February 24, 2010 the Rate Tiers on your Kasasa account will be changed as follows: · 4.26% Annual Percentage Yield (APY) will apply to balances of $0.01 - $10,000* · 1.66% APY applies to balances over $10,000* · 0.05% APY applies to all balances if qualifications are not met

1
Comment #11 by Anonymous posted on
Anonymous
Effective February 24, 2010 the Rate Tiers on your Kasasa account will be changed as follows:

·         4.26% Annual Percentage Yield (APY) will apply to balances of $0.01 - $10,000*
·         1.66% APY applies to balances over $10,000* 
·         0.05% APY applies to all balances if qualifications are not met

1
Comment #12 by Anonymous posted on
Anonymous
Effective February 24, 2010 the Rate Tiers on your Kasasa account will be changed as follows:

·         4.26% Annual Percentage Yield (APY) will apply to balances of $0.01 - $10,000*
·         1.66% APY applies to balances over $10,000*
·         0.05% APY applies to all balances if qualifications are not met

      *As long as qualifications are met each statement cycle  

If you have any questions, please feel free to contact us at 281-325-5000.

Thank you for banking with Founders Bank – the best bank ever!

 

1
Comment #13 by Anonymous posted on
Anonymous
Rate drops to 4.26% at the end of February 2010.

1
Comment #14 by Anonymous posted on
Anonymous
I spoke with Founders Bank this morning:  the monthly ACH transfer can be satisfied ONLY by an automatic debit set up by a third-party vendor.  That vendor cannot be a bank.  As for the direct deposit, it also cannot originate from a bank.

1
Comment #15 by Anonymous posted on
Anonymous
Follow-up:  I called Founders Bank again (call #3):  what if my third-party vendor is the bank that owns my credit card?  That is, the credit card bank debits my Founders account for the monthly payment -- will that satisfy the ACH transfer requirement?  Yes.

1
Comment #16 by Anonymous posted on
Anonymous
On 7/15/10 I applied online for this account.  Two days later I emailed the bank to request an update on the status of that app, since I had not even received a confirming email that my app was received.  A bank employee told me my account was open (and gave me the account number).  She asked me to fax or email a copy of my driver's license, which I did.  She assured me I'd hear from them on Monday.  It's now Wednesday and I still haven't heard from them -- that's a full week.  When I called them again just now, a different employee told me he located my application, but could not explain what's caused the delay.  He said they've opened more than 100 rewards checking accounts without problem, that they send confirming email within a day. Perhaps caution is advised if considering an account with Founders Bank.

1
Comment #17 by Anonymous posted on
Anonymous
It dropped again:



  • 3.51% APY* on daily balance up to $10,000
  • 0.65% APY* on portion of daily balance above $10,000
They also added a Kasasa Savings account as a compliment to the checking account:

"Kasasa Saver is a free, high-interest saver account linked to your free Kasasa Cash checking account (they work together). So the 3.51%APY* you make on your Kasasa Cash checking account and ATM fee refunds** are automatically deposited into your free Kasasa Saver account every qualification cycle. But that's not all. Your Saver account also piles 1.01%APY* on top of that; so you can sit back, relax and watch your savings grow. Kasasa Saver. Do you Kasasa?



  • 1.01% APY* on daily balance up to $10,000**
  • 0.65% APY* on portion of daily balance above $10,000**
  • No minimum balance
  • $100 minimum to open, no minimum thereafter
  • Free online banking"
http://www.foundersbanktx.com/personal/savings/kasasa-saver.html

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