Dollar Bank is offering a high-yield savings account that is an interesting variation to a high-yield reward checking concept. The savings account is called FreeMoney Savings and it pays 2.00% APY on balances up to $20,000 as of 12/02/2010. It has no monthly fees and no minimum balance requirement. It does require that you maintain a FreeMONEY Checking account, and the checking account requires that you make 6 electronic payment transactions (including Online Banking or Telephone Banking bill payments, ACH Debit or Point of Sale transactions) per month. On the plus side, the checking account also has no monthly fees or minimum balance requirements. There's a limit of one FreeMONEY Checking and Savings Account per customer.
The FreeMONEY Checking account doesn't earn any interest. One small perk with this checking account is that you can earn 10 cents every time you sign for a debit MasterCard purchase and 5 cents every time you choose to pay a bill online using Online Banking. The maximum cash rewards is $150 per year.
Like a high-yield reward checking account, the savings account has a high yield up to a small maximum balance. Also, it requires that you perform certain account activity. Compared to reward checking accounts, the savings account rate is low. On the plus side, you can meet the requirements without debit card usage. For those who hate using debit cards, this account may be appealing.
There are savings account that are available nationwide that currently have yields close to this account. AmericaNet Bank and Evantage Bank offer 1.75% APY on balances up to $35K without any requiring any monthly account activity. Also, SmartyPig offers 1.75% APY on balances up to $50K.
It appears the accounts are only available to those who live in either the Pittsburgh or Cleveland metro areas.
The bank has an overall health score at DepositAccounts.com of 4 out of 5 with a Texas Ratio of 8.23% (excellent) based on September 2010 data. It's a sizable bank with $5.82 billion in assets. Please refer to our financial overview of Dollar Bank for more details. The bank has been a FDIC member since 1984 (FDIC Certificate # 32245).