High-Yield Reward Checking Account at Pioneer Bank in Texas - Local Only

Update 8/11/2011: The rates have fallen. Refer to the rate history at the bottom for the change history.

Pioneer Bank in Dripping Springs Texas is offering a high-yield reward checking account called Pioneer High Yield Checking. The account has the following rates and features as of 8/11/2011 if certain monthly requirements:

• 2.76% APY for balances up to $25,000
• 1.00% APY for portion of balance over $25,000
• 0.05% base rate if requirements are not met
• Refunds of ATM fees

Monthly requirements include:

• 10 check card purchases
• 1 direct deposit or automatic withdrawal
• Receive e-statements

Other features of this account include:

• $100 minimum initial deposit
• No monthly fees
• No minimum balance requirement

There's an online application at the bank's micro-website. However, it implies that you must come in to a branch location to complete the application process.

It's a small bank with one office located in Dripping Springs, Texas which is just south of Austin.

The bank's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 9/30/09 financial data. The bank has been a FDIC member since 2007 (FDIC Certificate # 58577).

Other Reward Checking Accounts

There are still nationwide reward checking accounts paying 4% (see post) and a few local accounts paying over 5% (see post). However, rates under 4% are becoming more common, and anything at 3% or above is a decent deal for reward checking rates.

To find nationwide reward checking accounts and reward checking accounts in your local area, please refer to the reward checking section of DepositAccounts.com.

Rate History:

• 8/11/2011: 2.76% APY up to $25K
• 5/02/2011: 3.01% APY up to $25K; 1.00% over
• 8/25/2010: 3.26% APY up to $25K
• 2/28/2010: 3.51% APY up to $25K; 1.25% over; 0.05% base rate