BankOn is one of the rare internet banks that's limited to only certain states. My first review of BankOn was in October 2009 when the savings account was paying 2.05%. The yield held up well until last September when it fell to 1.15% APY where it remains as of 2/25/2011. This yield still is disappointing, but it's getting more competitive as others cut rates.
One nice small perk with BankOn that's still around 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. Another perk is the nice refer-a-friend bonus. The bank says it's a limited time promotion, but this has continued since last August. It rewards both the referrer and the new customer with $25. You can make up to $250 for referring friends.
One downside to BankOn 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.
I have a full review of both the savings and checking account in my 2009 BankOn accounts reviews.
Unfortunately, BankOn continues to be limited a few Midwestern states: Colorado, Kansas, Missouri, Nebraska and Wyoming.
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.