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High-Yield Reward Checking Account at First Security Bank & Trust in Iowa - MN & IA Only

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First Security Bank & Trust

Update 9/07/2010: The top rate is scheduled to fall to 2.83% APY on 9/09/2010.

First Security Bank & Trust is offering a reward checking account with the following rates and features if certain monthly requirements are met:

  • 2.83% APY on balances up to $25,000
  • 1.00% APY on portion of balance over $25,000
  • 0.17% base rate on all balances if requirements are not met
  • Refunds ATM fees nationwide

The monthly requirements include:

  • 10 check card POS (point of sale) transactions
  • one direct deposit or ACH debit
  • Online banking access
  • 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

There's an online application at the reward checking website, and according to the bank representative, they do allow out-of-state accounts. Update 5/13/2010: The bank has changed its availability policy. The application now states that they only accept applications from people residing in Iowa and Minnesota.

The bank has six offices in Iowa. It's a small bank with $245 million in assets and $191 million in deposits based on 3/31/09 data from the FDIC. The bank has been a FDIC member since 1934 (FDIC Certificate # 1852).

Other Reward Checking Accounts

There are not too many banks offering reward checking accounts nationwide. My nationwide list currently has 43 banks and credit unions with reward checking accounts nationally available. Several banks that had been offering their accounts nationwide have changed their policies and now restrict them to their local markets. So make sure to check with the bank for their latest policy before applying.

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.

Rate History:

  • 09/09/10: 2.83% APY up to $25K; 1.00% APY over; 0.17% base rate
  • 05/13/10: Availability reduced to IA & MN
  • 06/30/09: 4.01% APY up to $25K; 1.00% APY over; 0.40% base rate (nationwide)

  Tags: Iowa, First Security Bank & Trust, reward checking account, Minnesota

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Comments
5 Comments.
Comment #1 by Anonymous posted on
Anonymous
First Security is rated 5 stars by Bankrate.com.  A rare distinction for a bank offering reward checking accounts.  That's why I chose this bank.  They are very professional, have a good website and have been good to work with.  I just opened an account last week.

3
Comment #2 by Anonymous posted on
Anonymous
Got this email from them today:   "Thank you for your interest in First Security Bank & Trust. We currently only accept applications from people residing in Iowa and Minnesota.  "      

0
Comment #3 by Anonymous posted on
Anonymous
I am glad that I am not doing business with them!

1
Comment #4 by Anonymous posted on
Anonymous
Would like to echo sentiments of anonymous April 25; This bank has been very professional and user friendly. You are asigned a "personal banker" and you speak with a "live" person, in English, not an automated phone directory. Their rates and requirements are among the best out there. Apparently, I got in just under the wire, before they limited this account to in-state residents only. I asked "my" banker why they restricted the eligibility to in-state residents only; the answer was that they were inundated by out of state requests and could not keep up. So, for now, they are reserving the account to in-state customers only, though they may open it up again, nationally, at some future point.

1
Comment #5 by dunker posted on
dunker
Why can I no longer find the interest rate for this bank on the list of High Yield Reward Checking accounts?

2