5.01% Reward Checking Account at Farmers State Bank in Iowa - Local Only

Farmers State Bank is offering a reward checking account called Loyalty Checking. It has the following rates and features if certain monthly requirements are met:

• 5.01% APY on balances up to $25,000
• 1.50% APY on portion of balance over $25,000
• 0.10% on all balances if requirements are not met
• Refunds ATM fees nationwide up to $10 per month

The monthly requirements include:

• 12 debit card purchases (signature or PIN - excludes ATMs)
• two direct deposit or electronic ACH withdrawals
• Access online banking
• Receive e-statements (with a valid email)

Additional features of the account regardless of the monthly requirements include:

• $100 minimum initial deposit
• No minimum balance requirement
• No monthly service charge

A branch visit is required to open an account. Branches are located in the Iowa cities of Cedar Falls, Waterloo, Gilbertville, Raymond, Dunkerton (Black Hawk County) and in Jesup (Buchanan County). Update 7/29/10: The bank is now restricting availability of this account to residents of Black Hawk and Buchanan Counties.

The bank's ratings for safety and soundness are fairly strong: 3½ stars (good) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 3/31/09 financial data.

Farmers State Bank started in 1903 and has been a FDIC member since 1934 (FDIC Certificate # 12855).

Other Reward Checking Accounts

No less than four other Farmers State Banks are located in other counties within Iowa, but none presently feature a rewards checking account.

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.