4.01% Reward Checking Account at First Bank in Iowa


Update 5/31/09: A reader has reported that the top rate is scheduled to fall to 4.01% APY starting on 6/02/09.

First Bank is offering a reward checking account called First Bonus Checking. It pays 4.01% APY on balances up to $25,000 (1.01% for above) and refunds ATM fees nationwide if the following monthly requirements are met:

  • 10 check card purchases
  • one direct deposit or ACH auto debit
  • receive electronic statements

If these are not met, the rate falls to 0.20%. Minimum initial deposit is $100. There is no monthly service charge. A customer is allowed to open multiple checking accounts, but requirements must be met for each account to receive the top rate.

According to the bank's account disclosure, this 6% APY has been effective since 11/01/2008. This is one of the few 6% reward checking accounts remaining in the nation.

This account is offered to anyone in the state of Iowa, but new customers are required to visit one of the branches to open the account. I was told they'll be offering a new online application in mid March that will require no branch visit. However, customers will still need to be Iowa residents.

Branches are located in the Iowa cities of Des Moines, Johnston and West Des Moines. The bank has been FDIC insured since 1934 (FDIC Certificate # 4516).

Thanks to the reader who emailed me news of this reward checking account.

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:
06/02/09: 4.01% APY up to $25K
02/24/09: 6.00% APY up to $25K

Related Pages: checking account, reward checking account

  |     |   Comment #1
Your high yield checking accounts comparison website is very useful - thanks for providing the link! Another way to additionally compare rates and requirements on high yield checking accounts is to use tools like CheckingFinder. It allows you to research high yield checking accounts at select community banks nationwide. If you find an account that suits you, you can sign up for free.
  |     |   Comment #2
Emily, you should disclose that you are from CheckingFinder...

Here's the other post of yours:
  |     |   Comment #3
I live in a neighboring state to Iowa. For 6% I figured I would try applying. I received a call from a very nice old lady telling me what I already knew - Iowa residents only. I pleaded to no avail that I was 25 miles from the border.... PLEASE? (eyelashes batting with lower lip extended) Pretty Please???

No dice ... FYI anyway
  |     |   Comment #4
My apologies, livedog! I linked to the website with my name in this blog comment, but yes, to make it more transparent here, I am posting on behalf of CheckingFinder. Hope the website can help with your checking account research!

Emily (CheckingFinder)
  |     |   Comment #5
Received an email from First Bank stating that it will reduce its First Bonus Rate Checking Account rate from 6% to 4.01 starting 6/2/09.
  |     |   Comment #6
The link appears to no longer work.
Banking Guy
  |     |   Comment #7
Thanks for the note. I've emailed the bank about this. Hope they are still accepting new applications.
  |     |   Comment #8
This bank is in bad financial shape (C&D).
6.20% 60-Month / 6.01% 45-Month CD at an Iowa Bank (plus 6.35% Flex CD)
First Bank is offering a special 6.20% APY 60-month certificate of deposit. There's also a special 6.01% APY 45-month CD. Both have a minimum deposit of $5K. In addition, the bank offers a 30-month Flex CD with a rate that equals the Prime Rate minus 2%. Currently, the APY is 6.35%. This Flex CD allows additions to the principal of $1K minimum. It also has a $5K minimum initial deposit. The penalties for early withdrawal of the long-term CDs are 180 days of interest.

The Flex CD may be the best...

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