High-Yield Reward Checking Account at First Federal in North Carolina - Local Only

First Federal Bank is offering a high-yield reward checking account with the following rates and features if certain monthly requirements are met:

• 3.50% APY on balances up to $15,000
• 0.65% APY on the portion of the balance over $15,000
• 0.10% base rate if qualifications are not met
• ATM fees refunded nationwide for amounts up to $4.99 ($5 and over require receipts)

The monthly requirements include:

• 10 debit card purchases
• One direct deposit or ACH auto debit
• Access Online Banking once

Additional features of the account regardless of the monthly requirements include:

• $50 minimum intial deposit
• No minimum balance requirement
• No monthly service charge
• Free Online Bill Pay

There's an online application with no mention of a branch visit being required. Update 7/13/10: The online application now states the following:

First Federal is currently accepting applications from the following counties:

Harnett, Wake, Johnston, Cumberland, Hoke, Moore, Lee, Chatham, Durham, Granville, Franklin, Nash, Wilson, Wayne, Sampson.

Branches are located in the North Carolina cities of Dunn, Angier, Benson, Clayton, Erwin and Fuquay Varina.

The bank's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 1934 (FDIC Certificate # 31077).

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:

• 09/09/10: 3.50% APY up to $15K; 0.65% over
• 11/02/09: 4.50% APY up to $25K; 1.01% over; 0.10% base