1.75% Reward Checking Account Without a Balance Cap at Worthington Federal Bank in AL & NC - Local Only

Update 1/10/10: The top rate has fallen to 1.75% APY.

Worthington Federal Bank is offering a reward checking account called High Interest Plus (HIP) Account. The account pays 1.75% APY on all balances if the following monthly requirements are met:

• 10 debit card purchases
• One direct deposit or ACH auto debit
• One online Bill Payment
• Receive e-statements

If the requirements are not met, the rate falls to 0.25%. Additional features of the account include:

• $100 minimum initial deposit
• Free ATM usage worldwide
• Free online Bill Pay
• Free first order of basic wallet checks

The top rate is low for reward checking accounts, but on the plus side, there's no balance cap. For most reward checking accounts, only the first $25K qualifies for the top rate.

It appears a branch visit is required to open an account. Branches are located in Huntsville, Alabama and Elizabeth City, North Carolina.

The bank has some decent ratings for safety and soundness: 3½ stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 3/31/09 financial data. The bank has been a FDIC member since 1989 (FDIC Certificate # 32649).

Thanks to the reader who emailed me about this 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.

Rate History:
01/08/10: 1.75% APY
11/20/09: 2.00% APY
07/14/09: 2.50% APY