Bank of Putnam County is offering a reward checking account that offers 3.25% APY for balances up to $50,000 (1.01% for over $50k) and refunds of ATM fees when the following monthly requirements are met: 1) 10 check card transactions, 2) one direct deposit or ACH auto debit, and 3) access internet banking. If these are not met, the interest rate falls to 0.25%. There's a $50 minimum opening deposit, but no balance requirements afterward and no monthly fees.
This appears to require a branch visit. Branches are located in Cookeville, Baxter, Livingston, Sparta and Monterey, TN. This same reward checking account is also being offered by Cumberland County Bank which is part of Bank of Putnam County. Cumberland County Bank has branches in Crossville, TN. Bank of Putnam County and Cumberland County Bank are FDIC insured separately (FDIC Certificate # 8432 and FDIC Certificate # 18364).
Other Reward Checking Accounts
For other reward checking accounts in other parts of the country, please see my reward checking account page and my best checking account post.
07/13/09: 3.25% APY up to $50K (as reported by a reader since rate is not on bank's website)
04/15/08: 5.26% APY up to $50K
08/31/07: 6.25% APY up to $50K; 1.01% over; 0.25% base