High-Yield Reward Checking Account at First State Bank of Kansas City
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 1.01*% | - | $15k | Community First Bank (KS) | First Choice Checking | |
| OTHER TIERS: 0.26% → $15k+ | |||||
Update 5/28/10: The top rate has fallen to 3.30% APY and the balance cap has fallen to $15K.
First State Bank is offering a reward checking account that pays 3.30% APY on balances up to $15,000 (1.01% for above) and refunds ATM fees up to $25 per cycle if the following monthly requirements are met:
- 10 debit card purchases
- one direct deposit or ACH debit
- receive electronic statements
If these are not met, the rate falls to 0.25%. The minimum initial deposit is $100. There are no monthly service charges and no minimum balance requirements.
Update 5/20/09: It looks like the bank has changed its policy regarding out-of-area applications. It has been reported that the bank is no longer accepting applications from outside the greater Kansas City metropolitan area. This is now stated on the bank's main website.
I asked the bank if this account can be opened online by people from any state. The bank sent me an email saying that one could apply online at this page at CheckingFinder.com, and if the application is approved, you can maintain this account from out of state (see update above). However, I noticed at CheckingFinder that this bank only shows up for Kansas and Missouri zip codes.
Branches are located in Kansas City and Shawnee, KS. The bank has been FDIC insured since 1934 (FDIC Certificate # 12426).
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:
05/28/10: 3.30% APY up to $15K; 1.01% over
10/13/09: 3.94% APY up to $25K (Shown on bank's main webpage. Also states only for KC Metro area)
08/14/09: 4.51% APY up to $25K
08/13/08: 5.03% APY up to $25K; 1.01% APY over; 0.25% over
I did call Checkingfinder and had a long and very interesting conversation with them. My app was being kicked out before it even got to the identity verification questions. They didn't know why either, but suspected it was from too many ChexSystem inquiries (I am a rate chaser - so?) and they also commented that First State Bank was very stringent in who they accepted. They actually recommended I try applying to a different bank through Checkingfinder, which I did (and was accepted) so I inferred from this that the banks can set their own standards for what passes and what fails on a Checkingfinder application. I also inferred that First State Bank was not telling me the whole truth and so I was not unhappy not to be allowed to do business with them.
MARCH ATM & POS QUALIFICATION DATE-24TH; STATEMENT DATE-25TH
EFFECTIVE 2/26 THE NEW FCC REWARDS RATE WILL BE 3.50 (3.56 APY)
Also, I just received an email stating my account will be closed:
Dear Customer
First State Bank periodically reviews product lines and accounts to determine if there are issues of concern for the bank related to: 1) regulatory and compliance matters; 2) account and/or product line profitability; 3) various kinds of risk exposures; 4) or strategic/marketing fit. Just as an example, regulatory and compliance issues includes concerns such as the Community Reinvestment Act (CRA). Under the requirements of the CRA, we must give priority to serving the deposit and loan needs of our local community and limit activities outside of our local trade area. I mention this because, at our last examination, we were criticized for the number of “out-of-area” deposit accounts.
Based upon a recent review and in accordance with the “Account Termination” section of the Deposit Account Agreement and Disclosure you received at account opening, we have decided to terminate the First Choice Checking account relationship you currently have with First State Bank.
Specific information about the closure is included on the enclosed Account Closure Information Sheet.
We regret having to take this action but thank you for honoring us with this account.
Sincerely
Reid Hillmer
Sr. Vice President & Cashier
Enc.