Allegiance Bank's High-Cap Reward Checking Account Available Online for PA, NJ & DE Residents

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Update 2/19/2010: Top rate is scheduled to fall to 0.85% effective March 1, 2010. Readers have just reported being told this by the bank. One other change is the elimination of the deposit card usage requirement.

Allegiance Bank is now allowing residents of PA, NJ and DE to open its STAR reward checking account online. The rate is low for reward checking (2.75% APY as of 2/16/2010). However, this rate is for balances up to $250K. That's 10x the typical reward checking balance cap. The rates and the link to the online application are in the deposit rates page. I have more details on this reward checking account in my account review. The 2.75% APY has held since last May.

At the top of the online application it states:

We welcome all residents of Pennsylvania, New Jersey, and Delaware to apply.

In addition to the reward checking account, online applications are available for the Star Money Market Account and a for a few CDs. However, rates on these are not that competitive.

In addition to the online application, you can also open the account at one of its PA branches which are located in the suburbs of Philadelphia. Considering the recent snowfall around this area, I would think most would prefer the online application.

One issue to note, Allegiance Bank's ratings are weak: 0 star (lowest) at BauerFinancial and 1 star (lowest) at Bankrate.com. These ratings are based on 9/30/09 financial data. Also note, the bank has been operating under a FDIC Cease and Desist Order since 11/4/2009. The bank has been a FDIC member since 1999 (FDIC Certificate # 35078).

Thanks to the reader who emailed me news of this reward checking account.

Comments
Ian
Ian (anonymous)   |     |   Comment #1
Just received a call from the bank. They are reducing the APy to .85% on March 1 for all balances. I am closing this account.
4.50% 24-Month CD at Allegiance Bank in Pennsylvania
Allegiance Bank is offering a CD promotion with a 4.50% APY and a 24-month term. There's also a less competitive 18-month CD special with a 4.00% APY. Minimum deposit is $5,000, and new money is required. These rates are listed in the bank's rate table as of 11/27/08.

Last month the bank was offering 4.50% for a 20-month term.

The Bank offers a reward checking account that currently pays 3.75% APY on balances up to $50K. It had been 4% in October (see post).

The bank appears to require a branch visit...





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4.50% 20-Month CD at Allegiance Bank in Philadelphia
Update 11/27/08: The CD rates have changed. Please check the bank's website for the latest rates and specials.

Allegiance Bank is offering a CD promotion with a 4.50% APY 20-month CD and a 4.25% APY 15-month CD. The minimum deposit is $5,000, and new money is required.

This bank also offers a reward checking account that currently pays 4.00% APY on balances up to $50K (see post).

The bank appears to require a branch visit to open an account. Branches are located in Philadelphia, Pennsylvania and its suburbs (Bala Cynwyd, Berwyn, Bridgeport/King...





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2.75% Reward Checking Account at a Philadelphia Bank (Allegiance)

Update 2/19/10: The top yield is scheduled to fall to 0.85% APY effecitve 3/01/10. See bottom of post for the rate and cap history.

Allegiance Bank is offering a reward checking account that pays 2.75% APY on balances up to $250,000 (1.01% for above) and refunds ATM fees if the following monthly requirements are met:

  • 10 debit card transactions
  • One direct deposit or ACH auto debit
  • Receive electronic statements


If these are not met, the rate falls to 0.15%. The minimum opening deposit is $100. After it's opened, there are no minimum balance requirements and...



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