5.01% Reward Checking Account at Farmers Bank & Trust in Arkansas - Local Only

Farmers Bank & Trust is offering a reward checking account called True Rewards Checking with the following rates and features if certain monthly requirements are met:

• 5.01% APY on balances up to $25,000
• 1.01% APY on portion of balance over $25,000
• 0.25% on all balances if requirements are not met
• Refunds ATM fees nationwide

The monthly requirements include:

• 10 check card purchases (excludes ATM transaction)
• 1 direct deposit or ACH auto debit
• Access on-line 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
• Overdraft protection

An online application is available, but a branch visit is required to finish opening an account. Branches are located in the Arkansas cities of Magnolia, Camden and Welcome (Taylor) with additional branches (Southern State Bank, a newer division of FB&T since early 2008) in Malvern, Rockport, and Haskell.

FB&T ratings for safety and soundness are fair: 3 stars (performing) at Bankrate.com and 3½ stars (good) at BauerFinancial. Both ratings are based on 3/31/09 financial data.

The bank was established in 1906 has been FDIC insured since 1934 (FDIC Certificate # 1291).

Confusing 'Reward Checking' Accounts

Readers should be careful not to confuse two financial institutions within Arkansas with virtually identical names but dissimilar rewards accounts: Farmers Bank and Trust (FDIC nomenclature) in Blytheville as versus the one described above, Farmers Bank & Trust in Magnolia.

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.