Allegiance Bank's High-Cap Reward Checking Account Available Online for PA, NJ & DE Residents
Update 2/19/2010: Top rate is scheduled to fall to 0.85% effective March 1, 2010. Readers have just reported being told this by the bank. One other change is the elimination of the deposit card usage requirement.
Allegiance Bank is now allowing residents of PA, NJ and DE to open its STAR reward checking account online. The rate is low for reward checking (2.75% APY as of 2/16/2010). However, this rate is for balances up to $250K. That's 10x the typical reward checking balance cap. The rates and the link to the online application are in the deposit rates page. I have more details on this reward checking account in my account review. The 2.75% APY has held since last May.
At the top of the online application it states:
We welcome all residents of Pennsylvania, New Jersey, and Delaware to apply.
In addition to the reward checking account, online applications are available for the Star Money Market Account and a for a few CDs. However, rates on these are not that competitive.
In addition to the online application, you can also open the account at one of its PA branches which are located in the suburbs of Philadelphia. Considering the recent snowfall around this area, I would think most would prefer the online application.
One issue to note, Allegiance Bank's ratings are weak: 0 star (lowest) at BauerFinancial and 1 star (lowest) at Bankrate.com. These ratings are based on 9/30/09 financial data. Also note, the bank has been operating under a FDIC Cease and Desist Order since 11/4/2009. The bank has been a FDIC member since 1999 (FDIC Certificate # 35078).
Thanks to the reader who emailed me news of this reward checking account.
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