Illinois Deposit Account Rates and Deals

Princeville State Bank is offering a high-yield reward checking account called Kasasa Cash and also a companion savings account called Kasasa Saver. Both have competitive rates, and when used together, they can provide a good return for a large balance. First, the Kasasa Cash account has the following rates and features if certain monthly requirements are met (as of 8/23/2010):

• 3.51% APY on balances up to $25,000
• 0.50% APY on portion of balance over $25,000
• 0.05% base rate if requirements are not met
• ATM fee refunds up to $20 per month

Monthly requirements include:

• 10 debit card purchases
• one recurring automatic deposit or withdrawal
• Receive e-statements

Other account features include:

• No minimum to open
• No minimum balance
• No monthly fees
• Free online bill pay

The Kasasa Saver account has the following rates if the monthly requirements of the Kasasa Cash account are met (as of 8/23/2010):

• 1.75% APY on balances up to $100,000
• 0.50% APY on portion of balance over $100,000
• 0.05% base rate if requirements are not met

Like the Kasasa Cash account, Kasasa Saver has no minimum balance and no monthly fees.

Is It a Good Deal?

The Kasasa Saver yield may be a bit disappointing for reward checking fans, but for those who don't want to worry about multiple reward checking accounts, this can be a good deal. It's very rare to find a savings account with a yield this high on balances this high.

Online Application for Illinois Residents

These accounts are listed at the Kasasa.com website, and they show up when you search for any Illinois zip code (I tried several including zip codes from Chicago). You can apply online at Kasasa.com. The online application at the bank's website actually links over to the Kasasa.com application.

Branches are located in Princeville and Peoria, Illinois.

The bank's ratings for safety and soundness are fair: 3½ stars (good) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 3 out of 5 at DepositAccounts.com (see our financial overview of Princeville State Bank). These ratings are based on 3/31/10 financial data. The bank has been a FDIC member since 1950 (FDIC Certificate # 16900).

Other High-Yield Reward Checking Accounts

To find reward checking accounts in your state or to find those available nationwide, please refer to the reward checking section of DepositAccounts.com.

Mutual Federal Bank is offering a competitive 5-year CD rate of 3.10% APY. The 30-month CD rate is also fairly competitive at 2.00% APY. Minimum deposit is $500. These rates are listed at the bank's CD rate page as of 8/13/2010.

This bank used to offer top Jumbo 6-month CD rates, but currently the 6-month rate is low.

It appears that a branch visit is required to open an account. It's a small bank with one office located at 2212 West Cermak Road, Chicago, IL.

The bank's ratings for safety and soundness are a little above average: 3 stars (performing) at Bankrate.com, 3½ stars (good) at BauerFinancial and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview of Mutual Federal Bank). These ratings are based on 3/31/10 financial data. The bank has been a FDIC member since 1935 (FDIC Certificate # 28302).

Searching for the Best CD Rates

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.

TrustBank is offering two competitive regular CDs and a competitive 4-year add-on CD. The two regular CD rates are 2.40% APY for a 3-year term and a 3.00% APY for a 5-year term. Minimum deposit is $500. An even better deal is the bank's add-on CD called the DreamBuilder CD. The 4-year DreamBuilder CD has a 2.65% APY. Minimum deposit is $50. These rates are listed in the bank's CD rate table as of 7/26/2010.

The DreamBuilder CD requires that you have monthly deposits into this account. The bank's DreamBuilder CD page didn't have many details, so I emailed the bank last week. Here is the reply I received:

There is no maximum initial deposit limit for the DreamBuilder CD, however when opening online there are different funding limits depending on what method you use to fund the account. For example, funding is limited to $1000 if using a credit card. You can change the amount of the monthly deposit once the CD is open.

Since the monthly deposit amounts can be changed after it's opened, this CD has the benefits of an add-on CD in that the initial deposit and monthly deposits can be set to a small amount at the beginning, but later the monthly deposits can be increased if the interest rate environment doesn't improve. This can be used like an insurance policy against a low interest rate environment that lasts for a long time.

Application

The bank has an online application via andera.com that allows ACH funding. Last week I asked the bank if they allow out-of-state applications. Here was their reply:

We accept customers from anywhere in the U.S. providing they pass our identity verification procedures.

If you prefer a branch visit, the bank has branches in Illinois and in Tempe, Arizona.

Financial Overview

TrustBank's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview for TrustBank). These ratings are based on 3/31/10 financial data. The bank has been a FDIC member since 1934 (FDIC Certificate # 14662).

Searching for the Best CD Rates

Unfortunately, high rates on add-on CDs are very hard to find these days. Some banks and credit unions used to offer very competitive rates on their add-on CDs, but rates have gone down considerably, even more than regular CDs. I still list a few of these add-on CDs in my weekly summary. Most have 1-year terms which isn't really long enough to be useful as an insurance policy.

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.

TrustBank is offering a high-yield reward checking account that is a bit unusual. It offers a very high yield, but it applies only to a very small balance. So it's definitely not for those with large savings. For those who maintain an average balance of under $2,000, it may be something to consider.

TrustBank's reward checking account is called iChecking and it pays 7.00% APY on balances up to $1,000 as of 7/26/2010. Over $1,000, the rate goes way down to 0.20%. To qualify for this rate requires the following monthly activities:

• 10 debit card purchases
• One direct deposit
• Two Online Bill Pays or automatic payments
• Receive E-Statements
• Access Online Banking at least one time per month

There are no ATM fee refunds, but you have free access to the Allpoint ATM network. There are no monthly service charge and no minimum balance requirement.

When would this account be worthwhile?

This account would only be useful for those who don't have much savings. If you think you can keep an average balance of at least $1,842, you would do better in a 4% reward checking account with the typical $25K balance cap. An average balance of over $2,500 in a 3% reward checking account would do better than this iChecking account.

Another option for those who don't have much savings would be a regular free checking account combined with a cash-back credit card. If you spend $500 per month with a 2% cash-back credit card, your yearly return will be $120. With this iChecking account, you'll only make around $70 per year if you maintain an average balance of at least $1,000. If you prefer debit cards, PerkStreet Financial's checking account would be something to consider (see my Perkstreet Financial review).

Small Promotion

TrustBank is offering a little bonus for opening the iChecking. Here is how they describe the bonus:

Open iChecking online and receive a TrustBank T-shirt and a coupon for an additional $25 deposit into a DreamBuilder Certificate of Deposit opened online.

Application

The bank has an online application via andera.com that allows ACH funding. Last week I asked the bank if they allow out-of-state applications. Here was their reply:

We accept customers from anywhere in the U.S. providing they pass our identity verification procedures.

If you prefer a branch visit, the bank has branches in Illinois and in Tempe, Arizona.

Financial Overview

TrustBank's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview for TrustBank). These ratings are based on 3/31/10 financial data. The bank has been a FDIC member since 1934 (FDIC Certificate # 14662).

Other High-Yield Reward Checking Accounts

Fortunately, the vast majority of reward checking accounts have balance caps of at least $25K. However, lower caps of $20K to $10K are becoming more popular.

Please refer to the reward checking section of DepositAccounts.com to find reward checking accounts in your state or that are available nationwide.

Rockford Bank & Trust is another Illinois bank that's offering a high-yield reward checking account. It's called the U Account, and it's offering the following rates and features if certain monthly requirements are met (as of 7/12/10):

• 4.00% APY on balances up to $25,000
• 1.00% APY on portion of balance over $25,000
• Refund of ATM fees of up to $20/month

Monthly requirements of the account include:

• 15 Visa Check Cards Credit transactions
• 1 direct deposit or direct debit
• Accept eStatements
• Enroll in Online Banking

Additional features of this account include:

• $100 minimum initial deposit
• No minimum balance
• No monthly service charge
• First order of checks is free
• Free Online Bill Pay

It appears that a branch visit is required to open the account. Branches are located in Rockford Illinois.

The bank's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial, 2 stars (below peer group) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our Rockford Bank & Trust financial overview). These ratings are based on 3/31/10 data except for Bankrate which is based on 12/31/09 data. The bank has been a FDIC member since 2005 (FDIC Certificate # 57927).

Other High-Yield Reward Checking Accounts

Rockford Bank & Trust's debit card usage requirement of 15 per month is a little higher than average. However, the average does seem to be rising. In the past the 10-per-month requirement was the most common, but now requirements of 12-per-month and 15-per-month are becoming more typical.

Please refer to the reward checking section of DepositAccounts.com to find reward checking accounts in your state or that are available nationwide.

Freestar Bank in Illinois is offering a high-yield reward checking account called Green Account. I would have liked to have found a new reward checking account in a state like New York, Nevada or California which doesn't have many banks offering reward checking. Illinois is a state that already has quite a few reward checking accounts especially for areas outside of Chicago. Nevertheless, it's always nice to report on a new reward checking account, especially one with a top rate.

Freestar's Green Account has the following rates and features if certain monthly requirements are met (as of 7/09/2010):

• 4.00% APY on balances up to $25,000
• 0.25% APY on balances over $25,000
• 0.25% base rate if requirements are not met

Monthly requirements include:

• 10 debit card purchases
• One automated direct deposit
• Pay at least one bill through online bill pay
• Don't write paper checks
• Maintain under $25,000

Note, the last two requirements are not typical for reward checking. Here's the last sentence of the small print:

The lower rate will also apply if any checks are posted to your account or your average balance exceeds $25,000 at any time during the statement cycle.

These are two new gotchas that I haven't seen in reward checking accounts at other banks.

Also unlike other reward checking accounts, I don't see any mention of ATM fee reimbursements.

It appears that a branch visit is required to open the account. Branches are located in the Illinois cities of Pontiac, Bloomington, Gridley, Downs, Champaign, Urbana and Mahomet.

The bank's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial, 4 stars (sound) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our Freestar Bank financial overview). These ratings are based on 3/31/10 data except for Bankrate which is based on 12/31/09 data. The bank has been a FDIC member since 1934 (FDIC Certificate # 14736).

Other High-Yield Reward Checking Accounts

Please refer to the reward checking section of DepositAccounts.com to find reward checking accounts in your state or that are available nationwide.

Banco Popular has a checking account bonus in which you can get up to $125 for opening their Totally Free Checking and meeting some requirements. The promotion is listed on Banco Popular's checking account page. To earn the full $125, the following is required:

• Up to $25 for your old debit card and unused checks at another bank
• $50 for adding direct deposit
• $50 for using Banco Popular's free online bill pay

There's also a free gift. According to the NY/NJ Banco Popular promo page, the gift is an Easy Living Folding Chair. Here's the small print:

Minimum opening deposit is only $50 ($25 in NY). Customer purchases checks. Bring in your debit card and unused checks from another financial institution and we’ll pay you up to $25. The first ACH direct deposit of $1 or more must be received within 60 days of account opening to receive the $50 cash payment. However, you may have up to an additional 1–46 day grace period beyond such initial 60 day period for the first ACH deposit of $1 or more to be deposited to your account. The duration of such grace period, if any, is dependent upon the day in the calendar month in which you open your account. The first bill must be paid by Bill Pay service within 60 days of account opening to receive the $50 cash payment. The cash payments for direct deposit and Bill Pay are limited to one payment per household, are subject to IRS form 1099-INT, and will be credited to your checking account within 60 days after all conditions have been met. Your account must be open to receive the cash payments. Offer may be withdrawn at any time.

Note that the small print states that the customer purchases checks. On the plus side, Banco Popular's Totally Free Checking has no minimum balance or monthly service charge.

A branch visit is required to open an account. Branches are located in California, Florida, Illinois, New Jersey and New York.

Banco Popular North America is a FDIC member (FDIC Certificate # 34967).

Standard Bank and Trust Co. is offering up to a $200 bonus for opening a checking account which can include its high-yield reward checking account. The promo is shown on their home page, and in the bank's promotions page as of 6/23/2010. According to the small print, the offer is good through 7/31/2010. Here are the requirements:

• Receive $100 when 2 direct deposits (ACH credits) are received within 90 days of account opening and verification of a minimum of $300 per two consecutive statements cycle is met
• Receive $100 within 90 days of account opening and verification of ten signature based (non-PIN) transactions have been made using your Standard Bank Debit MasterCard

Here are a few important things to note in the small print:

• Offer applies only to new customers residing in Illinois and Indiana
• Offer is only available online
• One offer per household
• Cash bonuses may be considered interest and may be subject to 1099 reporting

The bank's reward checking account, My Green Checking, is one of the qualifying checking accounts. I did a My Green Checking review last August. The rate has stayed the same, but it was never high at 2.25% APY. On the plus side this applies to balances up to $50K rather than the more typical $25K.

Credit for this bonus find goes to markber at this iBankDesign thread.

The bank's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our Standard Bank and Trust Co. rates and reviews page). These ratings are based on 3/31/10 data except for Bankrate which is based on 12/31/09 data. Standard Bank and Trust Co. has been a FDIC member since 1947 (FDIC Certificate # 16606).

American Eagle Bank of Chicago continues to offer a competitive 29-month CD special with a 2.50% APY. Minimum deposit is $1,000. This rate is listed in the bank's Chicago promotions page as of 6/22/2010.

One nice feature to note of the bank's CDs is a mild early withdrawal penalty. According to the small print at the bottom of the bank's rate table, it's 90 days of interest for terms over 12 months.

Accounts can only be open by residents of the Chicago metro area and current customers.

The bank's branch in South Elgin doesn't list these promotions. The bank now has two Chicago branches. These are located at 700 North Ashland Ave. and at 2255 North Western Ave.

American Eagle Bank of Chicago's ratings for safety and soundness remain the same as I reported last year: 3½ stars (good) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. At DepositAccounts.com the bank has an overall health score of 3 out of 5 (see our American Eagle Bank rates and reviews page). These ratings are based on 3/31/10 data except for Bankrate.com which is based on 12/31/09 data. The bank has been a FDIC member since 2007 (FDIC Certificate # 58514).

Alliant Credit Union has kept its CD rates unchanged since March 25th. These rates have now become quite competitive as other banks and credit unions have been lowering their rates over the last two months. Unlike Alliant's savings and checking account rates which are only changed at the start of each month, Alliant's CD rates can change at anytime during a month. I was told by an Alliant CSR that the CD rates are usually changed in the morning, and the rates listed now should last through today at the very least. The CSR couldn't guarantee any more. Hopefully, these current rates will last for a while. Below is the list of Alliant Jumbo CD rates as shown at Alliant's rates page as of 6/09/2010:

• 1.75% APY 12 to 17 months
• 2.00% APY 18 to 23 months
• 2.25% APY 24 to 35 months
• 2.50% APY 36 to 47 months
• 3.00% APY 48 to 60 months

Alliant calls these their Jumbo certificate rates, but it only requires a $25,000 minimum deposit. Many other institutions require a $100K minimum for their Jumbo CDs. Rates are 10 basis points lower for the regular CDs with a $1,000 minimum deposit. These CDs are also available in IRAs (Roth, Traditional and SEP) and Coverdell ESAs.

If you open these CDs online, I was told they limit the ACH transfer used to fund the CD from an external bank to $10,000 (this may be increased after you've been a member for a while). One way to fund the CD with a larger deposit is to first transfer the money into your Alliant savings account. Then you can call Alliant and open the CD using the Alliant savings account as the funding source. Alliant Savings Account also has the $10K ACH transfer limit. One easy way to transfer money into the savings account is by using the ACH transfer service of another bank, like Ally Bank. This way you won't have the $10K limit.

For more details about Alliant CDs, please refer to my September 2009 Alliant CD review.

Alliant Credit Union's savings account and High Rate Checking account continue to have competitive rates (currently 1.50% APY). Please refer to my Alliant Credit Union review for more details about Alliant and the savings account. I also have the savings account rate history at the bottom of the review.

Credit Union Membership

You can now qualify for Alliant Credit Union membership by becoming a member of Orphan Foundation of America (OFA). Alliant now has a special page that explains this:

Members of the OFA are eligible to join Alliant Credit Union and experience the Alliant Advantage [...] By making a $10 or greater donation to the Orphan Foundation of America, you will become a member of OFA, receive literature and other information from OFA, and qualify to join Alliant.

For the last several years, one could qualify for membership through the PTA (either national or local). Alliant lists other qualifying organizations here.

Alliant Credit Union Overview

Branches are located in Chicago, Des Plaines, and Elk Grove Township, Illinois. There are also branches in Virginia, Colorado and California.

Alliant Credit Union continues to have the highest rating (5 stars) for safety and soundness at BauerFinancial based on 3/31/10 data. However, it continues to have only has a 3-star rating (performing) at Bankrate.com (based on 12/31/09 data). At DepositAccounts.com we give Alliant an overall health score of 4 out of 5 based on 3/01/10 data (see our Alliant Credit Union rates and reviews page). Alliant is a large credit union with over $7.2 billion in assets. The credit union is federally insured by the NCUA (Charter # 67955).