1st United Bank recently launched a new reward checking account called Kasasa Cash. Unlike many new reward checking accounts, this one has a respectable balance cap of $25,000. Many new ones have caps of only $10K. The current rate isn't the best, but it's competitive compared to what's available nationwide and what's available in Minnesota. I've summarized the rates and features below. These are based on the bank's Kasasa Cash page as of 3/16/2012.
- 2.72% APY on balances up to $25,000
- 0.50% APY on portion of the balance over $25,000
- 0.05% base rate if requirements are not met.
- ATM fee refunds of up to $15 per month and up to $5 per ATM use
The following monthly requirements must be met to qualify for the high interest rate and ATM fee refunds:
- 10 debit card purchases
- 1 Automatic Payment, Bill Pay transfer, or Direct Deposit
The bank also offers a savings account called Kasasa Saver that's linked to the Kasasa Cash account. Meeting the Kasasa Cash requirements can qualify the customer for a higher rate on this savings account. However, the Kasasa Saver rate and balance cap are a little low: The following rates are accurate as of 3/16/2012:
- 1.01% APY on balances up to $10,000
- 0.50% APY on portion of the balance over $10,000
Both accounts are free with no monthly service charges and no minimum balance requirements.
There's an online application at the bank's Kasasa Cash page. Applicants must reside in Minnesota.
The bank has an overall health score at DepositAccounts.com of 3 stars (out of 5) with a Texas Ratio of 30.29% (below average) based on December 2011 data. Please refer to our financial overview of 1st United Bank for more details. The bank has been a FDIC member since 1961 (FDIC Certificate # 31249).
How The Reward Checking Rate Compares
The best reward checking rate that's nationally available for balances up to $25,000 is 2.52% APY at ABCO Federal Credit Union. You can get a higher rate, but the balance cap is lower.
1st United Bank has the top rate spot for Minnesota for a $25K deposit. The second best one is at Coulee Bank which offers a 2.55% APY on balances up to $25K. This account used to be available nationwide. This changed in 2011 when the bank limited new customers to Minnesota, Wisconsin and Iowa.