High-Yield Reward Checking Account at Farmers & Merchants Bank in Virginia
Update: The top yield has fallen to 2.74% APY.
Farmers & Merchants Bank is offering a rewards checking account that pays 2.74% APY on balances up to $50,000 (0.74% for above) and refunds ATM fees without limit if the following monthly requirements are met:
- 10 check card purchases
- one direct deposit or ACH debit
- receive electronic statements
- access NetTeller online banking
If these are not met the rate falls to 0.10%. The minimum initial deposit is $10. There are no monthly service charges or minimum balance requirements.
More details of this account are listed at the bank's Platinum Reward Checking webpage. According to the FAQ page, you can open multiple checking accounts, but requirements for each must be met to receive the top yield.
Update 12/12/09: Readers have reported being told by the bank's reps that they are no longer offering this account to out-of-state customers.
Update 8/04/08: It was just reported that out of state applicants are welcome. The bank's Marketing VP provided the following details:
Farmers & Merchants Bank does open accounts for customers outside the immediate trade area. Bank representatives contact the applicant via phone or e-mail, and request identifying documents to be mailed to the bank; the entire transaction can be completed via mail. Out of state applications welcome!
Update 8/08/08: I received some new information from the bank's customer service rep: You may be required to have some forms and copies of IDs notarized. The CSR said the application process does pull your credit from the bureaus so this may be a hard credit pull. The first box of 100 checks is free.
Branches are located in the western part of Virginia in the cities of Timberville, Broadway, Elkton, Bridgewater, Edinburg, Woodstock, Harrisonburg and Luray. The bank has been FDIC insured since 1934 (FDIC Certificate # 8668).
Other Rewards 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:
- 11/18/10: 2.74% APY for up to $50,000; 0.74% over
- 07/22/10: 3.25% APY for up to $50,000
- 12/17/09: 3.51% APY for up to $50,000
- 05/17/09: 4.01% APY for up to $50,000, 1.04% APY for above; 0.10% base rate
- 12/18/08: 4.51% APY for up to $50,000, 1.54% APY for above
- 06/25/08: 5.02% APY for up to $50,000, 2.05% APY for above; 0.15% base rate
The new interest rates, effective December 18, 2008, are:
4.4193% rate, 4.51% APY* on balances up to $50,000
1.5292% rate, 1.54% APY* on balances over $50,000
One interesting thing to note is that APY for balances over $50K has been the inverse of the APY below $50K.
For the 10 debit card transactions, do purchases made online count or do they have to be made in person with a swipe of the card. For example, my cable tv and cellular phone company allow payment by Visa card. Would I be able to make payments on my FMB debit card and have those transactions count towards my 10 for the month?
Do they have online bill payment services available linked to the account?
Do they allow transfers of money in or out of the account using ACH transactions and what fees, if any are associated with this?
Thank you.
I/we understand that this account is intended to function as a primary checking account.
Visa Check Card transactions should be for ordinary and customary expenditures, not simply 10 deminimus transactions designed to qualify for rewards requirements.
BUT the ATM card is stuck with the auto-assigned PIN if you are out of state. No way to change it. None. TO me this is both insecure and a PITA to remember random numbers that have no personal meaning.
I believe if you are in state their atm machines may be able to change it for you.
3.45% rate, 3.51% APY* on balances up to $50,000
1.0255% rate, 1.04% APY* on balances over $50,000
.10% rate on all balances any month you do not qualify for rewards
Ken, I appreciate your putting the rate drop info in the weekly wrap-up, but could you also put a quick blurb in the daily posting? Could of saved me some time and postage...