4.01% Reward Checking Account at a Massachusetts Bank (The Community Bank)

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Update 9/19/09: The top yield has fallen to 4.01% APY. Please see bottom of post for the rate history.

The Community Bank has a rewards checking account that pays 4.01% APY on balances up to $25,000 (1.51% for above) and refunds ATM fees (without limits) if the following monthly requirements are met:
  • 15 debit card purchases
  • direct deposit or ACH payment or billpay
  • receive electronic statements
If these are not met, the rate falls to 0.10%. The minimum initial deposit it $50. There are no minimum balance requirements.

There's an online form that you can submit to receive the new account application in the mail. However, the form is restricted to the states of Massachusetts and Rhode Island.

Branches are located in Southeastern Massachusetts and Cape Cod. The bank has been FDIC insured since 1985 (FDIC Certificate # 26396).

Other High Yield 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:
9/15/09: 4.01% APY up to $25K; 1.51% APY over $25K
6/16/09: 4.51% APY up to $25K; 2.01% APY over $25K
3/15/09: 4.51% APY up to $25K; 2.15% APY over $25K
9/02/08: 5.01% APY
5/08/08: 6.01% APY up to $25K; 2.50% APY over $25K;
Related Pages: checking account, reward checking account

Previous Comments
Anonymous
  |     |   Comment #1
I recently opened this account, and although the conditions themselves were easy to meet and I am enjoying the higher yield, there are two things to be aware of for this bank:
- one, the required a branch visit to "verify ID"; the rep said they hope to be able to do this step online in the near future
- two (and this is a BIG ONE) there is no self-managed ACH available online; if you want to get money into this account from another account or vice versa, you'll need to do it via their Bill Pay as a payment to yourself. This is very annoying as I like quick/customizable ACH offered by other online banks like e*trade, etc. When I asked the rep if there was a way to set up a recurring ACH with my other banks, she sent mea paper form in the mail for continuous same-amount periodic transfers...not what I was looking for!

If you can get over this ACH issue, then the account is great. I got over it by switching my direct deposit to them (from BoA where I was getting ZERO interest anyway) so I no longer have the need to transfer at all.
Banking Guy
  |     |   Comment #2
Thanks for the info. I think most of banks offering these reward checking accounts lack an ACH transfer system. You should be able to set up ACH transfers if you set it up from your E*TRADE account or another online bank that has its own ACH service. These often count towards the direct deposit/ACH debit requirement.
Anonymous
  |     |   Comment #3
Yield has dropped to 4.51 APY
Anonymous
  |     |   Comment #4
Rate dropped to 4% by 15 September; also with FDIC C&D pending order.
Anonymous
  |     |   Comment #5
APY is 4.01% on 9/15/09.
Anonymous
  |     |   Comment #6
This bank has fallen from my list since it provides so-so 4% at 15 debit transactions.
51hh
  |     |   Comment #7
Rtae dropped to 3.01%.
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