High-Yield Reward Checking Account at an Arkansas Bank (Heartland Community)
Update 7/03/10: The top rate has fallen to 3.25% APY. Refer to the bottom of the post for the rate history.
Heartland Community Bank is offering a reward checking account called Interest Plus Checking. It pays 3.25% APY on balances up to $30,000 (1.21% for above) and refunds ATM fees if the following monthly requirements are met: 1) 10 check card transactions, 2) one direct deposit or ACH auto debit, 3) access online banking and 4) receive electronic statements. If these are not met, the rate falls to 0.20%. The minimum opening deposit is $100. There are no monthly service charges or minimum balance requirements.
There's an online application link on their Interest Plus Checking page. They used to allow people from any state to apply. However, as of 9/26/09, the application limits new accounts to residents of Arkansas. For residents of Arkansas, you'll need to mail the deposit and signature card.
Branches are located in the Arkansas cities of Bryant, Fordyce and Sheridan. The bank has been FDIC insured since 1934 (Certificate # 28761).
Credit for this find goes to FW member jowaju who posted it on this FW thread.
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:
05/12/10: 3.25% APY up to $30K
02/??/10: 3.51% APY up to $30K
12/08/09: 3.76% APY up to $30K; 1.21% over; 0.20% base rate
09/23/09: The account is now limited to Arkansas residents (per online application)
04/15/09: 4.02% APY
04/09/08: 5.06% APY
02/21/08: 6.01% APY up to $30K; 1.31% over; 0.30% base rate; available nationwide
It seems likely that the banks get at least 1-2% in transactioin fees from all purchases. So if a customer makes $1,000 in purchases a month, the bank should be making $10 to $20 in fees. If that customer has a $10K balance, every one percent of interest costs the bank about $8 a month. The math can work out if the average balances are not too big and if the average debit card purchases are not too small. Hopefully, there will be enough average joes in these accounts who'll have small account balances and large debit card payments to make up for others who have large account balances and small debit card purchases.
These reward checking accounts are becoming widespread across the nation. I've posted on more than a 100 over the last year. This link has the full list. I still need to better group them by state.
I know Bank Guy linked to the page with a huge list, but it is quite long to scroll down and read all the text looking for a bank or credit union that has no balance cap or a balance cap of $100,000.
Does anyone have a link to a specific list of reward checking banks or credit unions that have a $100,000 cap or no cap at all? Yes, I am sure the list would be minuscule.
Thank you.
1) $25K to under $50K
2) $50K to under $100K
3) $100K+
Seems like the Northeast (especially MA) has the most reward checking accounts with $100K caps.
I think that would be helpful to quite a few people (I know it would be helpful to me).
Hope you know many appreciate your efforts like I do.
I call on anyone who is able financially to click on "Tip Jar" on the main page and send Banking Guy a tip to show appreciation for all his efforts. I intend to do this tonight myself. Thank you.
Perhaps you can do some analysis and make a recommendation to your readers.
After my experience with First Arkansas Bank and Trust ... they dropped the APY to 4.44% before I even got my debit card ... I'm passing on this opportunity.
I have two local credit unions (Eastern Financial Florida CU and Power Financial CU) that are still paying 6% APY and advertising it on TV.
Another thing to consider is that many credit unions only change rates at the start of the month after the rates are reviewed by the board. So many credit unions may not have had the time to fully react to the massive Fed rate cuts at the end of January. If that's the case, we may see many more rate cuts in March.
I guess that means I keep my fingers crossed next week and hope my current rewards checking accounts maintain their rates ... they are all credit unions with balance caps of $25K.
I thank you every day for getting me into 6% CD's at several good credit unions last year. I didn't even know about credit unions before I started reading your blog. I'm now happily addicted.
turns out this is a very friendly bank. i received a letter of thanks from the president and a thank you card from the representative who has gone above and beyong the call of duty to help answer all my questions immediately and professionaly over the phone and through emails.
i plan to keep this account even if their rate drops below the 6% which i was told it will not even if the rates drop...we will see how long they will be able to hang one.
go south!
Hot sand.
Questions for others here including Banking Guy - 1) anybody else have this happen? 2) any ideas about whether it was more likely I got torpedoed by the ongoing balance transfers or by the other Rewards Checking accounts? The latter one is interesting, because if true it may indicate that at least some banks see customers who also have Rewards Checking accounts at other banks as undesirable.
In my opinion this is an abuse of ChexSystem. It should only be used to ensure that you've been responsible at your other banks, and you shouldn't be penalized if you've opened too many accounts.
We have recently been notified that your debit card was compromised due to a security breach with Heartland Payment Systems.
I have no other award checking accounts. I tried to open the account with $15K. I think there getting wise to people that just want a good rate. Buyer beware.
I'm considering opening this accout. Do they give a new member hard time to open it?
Did the online application the other day, and within 24 hours got a rejection email from them...with no explanation of why...and only a referral to request a ChexSystems report.
I have excellent credit and haven't opened a lot of other accounts lately. And just to show how arbitrary the process can be, the next day, I applied for and was approved within 24 hours for a different rewards checking account that's high up on Bank Guy's list...
Heartland must not be too interested in getting new accounts right now. No problem, I'll put my money elsewhere.
I called them and told them not to bother opening the account. They didn't seem to care.