With the news that Alliant Credit Union will be lowering its savings account yield from 1.50% to 1.35% in September, more people may be interested in BankOn. I first reported on BankOn in October 2009. Since then it has maintained a very competitive rate on its Money Market Savings Account. It's currently 1.60% APY as of 8/25/2010, and this rate has been maintained since April.
Unfortunately, BankOn isn't available nationwide. It's one of the rare internet accounts that is limited to only certain states: Colorado, Kansas, Missouri, Nebraska and Wyoming.
Another downside is the requirement of opening its internet checking account. The checking requires a $100 minimum opening deposit, and it pays no interest. However, there is no minimum balance requirement after opening.
One nice perk with BankOn is a sign-up bonus of $25 when you open the savings account. There doesn't seem to be any additional requirements to receive this bonus. The rules say there's a limit of one per household, and the bonus will be paid within 10 business days of account opening.
There's also a nice refer-a-friend bonus. This is a limited time promotion that rewards both the referrer and the new customer with $25. You can make up to $250 for referring friends.
For more details about BankOn, please refer to my 2009 BankOn review. BankOn is part of Pinnacle Bank which has been a FDIC member since 1934 (FDIC Certificate # 10634). Pinnacle Bank has a link to BankOn at its website so you can confirm the relationship.