Iowa State Bank Has Top Rate Kasasa Cash Checking


Update 7/24/2015: The Kasasa Cash balance cap has been raised from $10K to $25K.

Iowa State Bank has a nationally available Kasasa Cash checking account that earns 3.25% APY on qualifying balances up to $25K, with qualifying balances over $25K earning 0.30% APY. Non-qualifying balances earn 0.05% APY.

3.25*%-$25kIowa State Bank (13953)Kasasa Cash
Accounts mentioned in this post. Rates as of October 24, 2016.

According to Iowa State Bank’s Kasasa Cash page, the qualifying requirements are as follows:

  • Have at least 10 debit card purchases post and settle.
  • Have at least 1 automatic payment (ACH) or direct deposit post and settle.
  • Be enrolled and review eStatement.

The minimum opening deposit is $1, with a limit of one account per Social Security Number. There are no monthly fees on the Kasasa Cash checking account and no minimum balance required to earn rewards. Domestic ATM fees will be reimbursed up to $20 per qualification cycle; ATM receipts must be presented for reimbursement on fees of $5 or above.

"Monthly Qualification Cycle" is defined as a period beginning one day prior to the first day of the current statement cycle through one day prior to the close of the current statement cycle. Iowa State Bank provides a helpful calendar that clearly shows the parameters of the Monthly Qualification Cycle.

Thanks to the observant DA member who alerted me to this deal!


Update 1/28/2015: This account is no longer nationally available. The bank's online application now states "To open an account online with Iowa State Bank you must be a resident of the state of Iowa, Nebraska, Minnesota or South Dakota."

Update 1/28/2015: The reader emailed me about his experience opening an account. The bank mailed forms to him that required a notarized signature. He also had to mail them a color photocopy of his driver’s license and a photocopy of his Social Security card. Once the bank receives the documents, they will initiate the ACH funding and mail him a letter to allow him to set up online access.

With eight branches located in the northwest corner of Iowa, Iowa State Bank’s Kasasa Cash checking account is available to all U.S. citizens, 18 years and older. This account can be opened online, or at any of the branches located in Orange City, Hull, Ireton, Le Mars, Paullina, Sanborn, Sheldon, and Remsen. (As with so many other online applications, Iowa State Bank’s application process is time sensitive, so I have not included a direct link.)

Minors, resident aliens and non-resident aliens interested in opening a Kasasa Cash checking account need to contact Iowa State Bank directly to apply.

N.B. There is no guarantee that a community oriented bank like Iowa State Bank will continue to offer this Kasasa Cash checking account on a nationwide basis, particularly considering the very attractive 3.25% APY.

Bank Overview

Iowa State Bank has an overall health rating of "A+" at, with a Texas Ratio of 3.04% (excellent), as of September 30, 2014. In the past year, Iowa State Bank has increased its total deposits by $99.69 Million, an excellent annual growth rate of 30.53%. Please refer to our financial overview of Iowa State Bank for more details.

Iowa State Bank (FDIC Certificate # 13953) celebrated its 135th anniversary last year. It would be almost impossible to summarize Iowa State Bank’s varied history of bank purchases, mergers and growth in a couple sentences. Suffice it to say, the original bank formed by the Baumann Brothers (and named after themselves) with $35K in capital stock has grown into today’s Iowa State Bank with assets in excess of $509 Million.

How the Kasasa Cash Account Compares

When compared to other reward checking accounts tracked by, with maximum balance caps of $10K and nationally available, Iowa State Bank’s Kasasa Cash is highly competitive:

The above rates are accurate as of 1/12/2015.

To find the best rates on liquid accounts in your state or that are nationally available, please refer to our high yield checking account rate table and personal checking account rate table. When using the table, make sure the Deposit Amount selected in the "Customize Your Search" section matches the balance cap in which you’re interested.

gregk   |     |   Comment #1
Nice rate but the balance cap is too low.  It might appeal to some barrel scrapers already maxed out on the better deals (e.g. Inova, LMCU, & Frontier), - but even the 2%/$15,000 RCA's pay just $25 per year less than this, and not worth the bother to switch out if already a going concern for you.

I suppose if you have just $10,000 to deposit and are comfy with the typical RCA pony show this might be good. 

Few DA vets will be biting.
moneysaver   |     |   Comment #2
Seems the door on this account has closed, if it was ever open nationally in the first place.

I applied online the same day as Ken's post on this account appeared. And the bank received my application, and told me they were processing it.

Then today, I received the following emailed response:

"Thank you for your interest in our Kasasa account.  At this time, our account is only available to people in our geographic area of Iowa, South Dakota and Southwest Minnesota.  Sorry for any inconvenience.  Kasasa is available nationwide.  Please search for a community bank in your local area that offers Kasasa."

The earlier automated response email I received after submitting my online application said to expect a response in 1-2 business days. When that didn't happen, I called the bank yesterday and spoke to the CSR handling account openings. And clearly from our conversation, they had (as a very small bank) apparently received a flood of applications lately, perhaps as a result of Ken's post.

Perhaps they weren't expecting or prepared for what that kind of national offer would produce.
Anonymous   |     |   Comment #3
Same happened with me...
gregk   |     |   Comment #4
One might guess the 3.25% will be only somewhat less ephemeral than the national offering. 

In any case, it was going to net you no more than $27 a month for the trouble.

You should have acted sooner, hehe.