4.00% Reward Checking Account at Bank2 in OK
Update 1/10/10: The top rate is scheduled to fall to 4% APY for balances up to $15,000 on February 8, 2010.
Bank2 is offering a reward checking account called Great Rate Checking. The account offers the following features if certain monthly requirements are met:
- 4.00% APY on balances up to $25,000
- 1.01% APY on balances over $25,000
- 0.01% base rate if qualifications are not met
- ATM fees refunded up to $50 (nationwide only)
The monthly requirements include:
- 12 check card purchases
- direct deposit (CSR said any ACH deposit also counts)
- receive e-statements
- access online banking
Additional features of the account regardless of the monthly requirements include:
- $100 minimum initial deposit
- no minimum balance requirement
- no monthly fees
- multiple accounts can be opened, but requirements must be met for each account As of 5/6/09, there's a limit of 2 accounts per household.
More details of this account are provided at the bank's micro-website.
As of 2/8/2010, the bank is starting a companion savings account, Great Rate Savings. It'll pay 2.01% APY for balances up to $35,000 if the above checking requirements are met.
The rate may be guaranteed through 1/01/2010. This is based on the bank's advertisement in today's (3/08/09) Oklahoma City newspaper. The ad is available online. Note, I only see this guarantee in the image of the ad. I don't see it in the ad's small print or at the bank's website. I recommend saving this ad for future reference.
Update 1/10/10: A reader reported receiving a letter from Bank2 informing customers that the top rate is scheduled to fall to 4% APY and the cap is scheduled to fall to $15,000 effective February 8, 2010.
The bank provides an online application, and the first page of the application states: We welcome all residents of the United States to apply. Please note that Bank2 is a small bank, and small banks often change their policies on account availability. Update 5/7/09: It looks like they have changed it. According to the website, it's now only available to Oklahoma residents.
The online application allows for electronic funding using your existing checking or savings account.
Bank2 has two offices in Oklahoma City. According to Bank2's About Page:
Bank2 is a subsidiary of the Chickasaw Banc Holding Company. The Holding Company and thus Bank2 are 100% owned by the Chickasaw Nation.
Bank2 has solid ratings for safety and soundness: 4 stars (sound) at Bankrate.com and 4 stars (excellent) at BauerFinancial. Both ratings are based on 9/30/08 financial data. Update 5/7/09: Their ratings have gone done. Current ratings based on 12/31/08 data: 3 stars (adequate) at BauerFinancial and 2 stars (below peer group) at Bankrate.
Bank2 has been FDIC insured since 1934 (FDIC Certificate # 11521).
Other Reward Checking Accounts
To find reward checking accounts in other areas of the nation or to learn more about these accounts, please refer to my High Yield Checking website.
Rate History:
02/08/10: 4.00% APY up to $15K (reader reported receiving a letter) debit card req = 12
03/08/09: 5.01% APY up to $25K (was guaranteed to 12/31/09); 1.01% over; 0.01% base; debit card req = 10
Bank2 got me with the rate guarantee. I have questions, but I figured apply first ask questions later. I was unable to find a fee schedule, nor could I determine if bill pay is free. I'm guessing maybe it's not free since they don't brag about it. I can report there's mention of a dormant fee as follows: "All Checking, NOW, and Money Market Accounts will be charged the dormant fee on the account statement containing the 181st calendar day of inactivity by the customer and every month until the customer reactivates the account." Again, I was unable to find a schedule of fees, so I don't know how much the fee is. I applied for a joint account, and it asked questions for each applicant to confirm identity. They were actually very 'easy' questions....I've had some ask stuff that was so obscure about me that even I couldn't answer them with 100% certainty! :) They allow ACH funding, and the process ends saying: A bank rep will be in touch within the next few days with further details. I have a list of questions to ask when they contact me. I hope this bank and their account is as good as it sounds.
I am going to open this account.
Does it mean 10 ATM transactions in just 5 days?
Also, is anyone nervous that keeping a high balance in a debit linked account is risky for theft? Just me?
However, I have opened the Bank2 account. Couldn't resist the interest rate guarantee. My plan is to use the debit card at one merchant only. I normally go to Meijer once per month and plan to divide my purchases into 10 separate transactions at the self-checkout. I figure this will minimize the likelihood of the card getting stolen, and make it easier to track down the culprit if it does happen.
Here's a link that explains your liability if your debit card is stolen: http://consumerist.com/consumer/debit-cards/debit-card-stolen-how-much-are-you-liable-for-242952.php
So far, I hear it is one hard from each credit report. Is that right?
accounts. I use the card as "credit" so I don't have to enter a pin. Just remember to begin your 10 debits on the 7th and conclude them before the end of the month so there is plenty of time for them to post to the account before the end of the cycle.
Bankrate.com: 2 stars, "below peer group"
BauerFinancial: 3 stars
Does anyone know if ACH transfers can be initiated from this bank's website?
Something funny I noticed: their website ad at www.bank2greatrate.com is almost exactly the same as First State Bank's website at www.firstchoicechecking.com. They both say "powered by FIRST ROI".
I consider myself extremely financially conservative and I've no qualms about putting a large amount of money across several Bank 2 Reward Checking accounts.
As most banks, Bank 2 has FDIC insurance. As long as you stay under FDIC limits (currently $250K per depositor until 1/1/2010) at a particular bank, your money is fully insured.
Should Bank 2 go under and you funds are at or below the FDIC limit, you will receive your principal, along with all the interest that has accrued to date.
Regardless, I hope Bank 2 does OK. The people I've worked provide excellent customer service, and are very pleasant, too.
"Changes as of 5/6/09-This account is limited to 2 accounts per customer and/or household. Additionally, the account is limited to Oklahoma residents only. The account may be offered to Bank2 loan customers."
Remember it took in a lot of out-of-state rate chasers who do small transactions...