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5.00% Reward Checking Account at Carolina Premier Bank in NC - Local Only

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Carolina Premier Bank

Carolina Premier Bank is offering a reward checking account with the following rates and features if certain requirements are met:

  • 5.00% APY on balances up to $25,000
  • 0.50% on portion of balance over $25,000
  • 0.50% base rate if requirements are not met
  • ATM fees refunded nationwide

The monthly requirements include:

  • 12 debit card purchases of at least $5 each
  • One direct deposit or auto debit
  • One online bill pay
  • Receive e-statements

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

  • Requires that you open and maintain another account (savings or CD)
  • $200 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge

Most of the above details are not listed at the bank's website. A reader mentioned this account, and I called the bank for the details. According to the CSR, the other account that must be opened can be the passbook savings account which currently has the rate of 2.10% APY on all balances regardless of the above monthly requirements. Minimum initial deposit is $200, and it has no monthly service charges.

The requirement of the additional account is not typical for reward checking accounts. Another aspect that's not typical is the $5 minimum purchase to meet the debit card usage requirements. Since banks make a certain amount off of each debit card purchase, banks depend on heavy debit card usage to fund the high interest rate. As I described in this recent post, banks sometimes will put pressure on customers to spend more with their debit cards.

A branch visit is required to open accounts. The bank is located in Charlotte, North Carolina.

It's a small bank that was just established in 2007. Consequently, it's still labeled as a start-up without any rating by BauerFinancial. Bankrate.com gives the bank a safe and sound rating of 3 stars (performing) based on 6/30/09 financial data. The bank has been a FDIC member since 2007 (FDIC Certificate # 58516).

Thanks to the reader who emailed me news of this reward checking account.

Update 2/10/2010: I just called and verified the above rates are still valid.

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 (Just updated yesterday! - 11/09/2009)


  Tags: North Carolina, checking account, Carolina Premier Bank, reward checking account

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Comments
14 comments.
Comment #1 by Anonymous posted on
Anonymous
Finally somebody is bold enough to say" At least $5 on debit transactions", which should have been added to all RCA terms; IMO.

1
Comment #2 by Niels (anonymous) posted on
Niels
The customer service at this bank if lacking. No ability to transfer funds out to another bank via ACH. Also they may state one thing verbally (before all these requirements were documented) but then wammy you with another. i.e. was told 10 transactions required and had 25K in their account but then at end of month was not paid 5% interest because the requirement was 12 5$ transactions. I said OK, please credit my account and now I know and will ensure 12 transactions of greater than 5$ are met in future. Bank told me they would not credit me the interest missing even after I volunteered to forfeit 10$ to cover as two phantom transactions that were missed. For this reason I am looking at setting up a second account at ecountybank.com , The complete setup can be done online, requiring no visit to office and they pay 4.85%. Beware of transactions with Carolinapremierbank.

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Comment #3 by Anonymous posted on
Anonymous
Would recommend trying http://www.marinefederalhb.org/home/ps/pp if you are not liking your banking experience, they also pay 5% interest and you would have qualified for your full interest with only 10 transactions. Have not dealt with this bank Carolina Premier but sounds like a frustrating experience if what you have said is true.

--jm

1
Comment #4 by Anonymous posted on
Anonymous
My experience was very different. I've had a 5% account there for almost a year and have always received my interest. BTW, I also can send money to my other bank by ACH. I do use my debit card a few extra times each month, just to be sure I meet the requirements each month. I was told 12 every month, and I looked at my paperwork and it did say 12. I'd rather bank here in Charlotte, so this suits me fine.

1
Comment #5 by Anonymous posted on
Anonymous
Stupid president's commercial without any further RCA information. Red Flag right there!

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Comment #6 by Anonymous posted on
Anonymous
11:23:

You had this RCA for a year?

And they still do not have any details about this !@$# RCA?

What a joke!

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Comment #7 by Anonymous posted on
Anonymous
This president/CEO) annoys me right away...

Instead of reward checking details and forms, you had to annoy all your potential customers... get a life, CEO.

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Comment #8 by 51hh posted on
51hh
The nice president has disappeared... signifying rate change any time??

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Comment #9 by 51hh posted on
51hh
This bank disappeared from your list...??

-1
Comment #10 by KenBDG posted on
KenBDG
It might be due to the fact they don't list the rates on their website, and it has been 3 months since I last called. I'll try to check with them this week. Hopefully, the rates haven't changed.

0
Comment #11 by 51hh posted on
51hh
I did check with their rate, still the same (5%), their president re-appeared to annouce the rate.  CSR claimed that they are developing RCA T&C on their website.  I am sure that the rate will drop when they finally get RCA on their website.

1
Comment #12 by 51hh posted on
51hh
This bank doe not have the RCA at their website, except its president's speech on promoting their RCA. 

Today I called to check their rate since the "president" disappeared (again).  Ha, the rate is now 4.02% as of 17 March.

Another drop of the 5% club member. 

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Comment #14 by 51hh posted on
51hh
Sorry for the double post, thought it disappeared.  The $5 (minimum) debit card transaction lower limit did nothing for them; they still lowered the rate.

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