Reward checking accounts have always been limited to personal accounts. That may start to change. I just found a bank that now offers a business reward checking account. Lake City Bank in Indiana now offers a business rewards checking account that operates just like the high-yield reward checking accounts that has long been available to individuals. It has the following rates and features based on this bank page as of 10/4/2012:
Rates if monthly requirements are met:
- 2.00% APY for balances up to $25,000
- 0.10% rate for portion of the balance over $25,000
- 0.01% APY if requirements are not met
- 10 debit card purchases
- Maintain eStatements
Unlike most reward checking accounts, this one has a monthly fee of $10. The bank offers credits that can offset this fee: $5 for Lake City Bank Business Credit Card and $5 for Lake City Bank Merchant Services Account. There's also a transaction fee after the first 150 transactions per statement cycle.
Lake City Bank may have decided to offer a business reward checking account after regulation Q was repealed last year. Regulation Q had prohibited banks from offering interest business checking accounts.
Personal Reward Checking Account
Lake City Bank has long offered a personal rewards checking account. I first reviewed it in January 2008 when it was paying 6.01% APY for balances up to $25K. It now pays only 1.51% APY for balances up to $50K.
Lake City Bank is a sizable community bank with many branches in northern Indiana. Some of the major cities with branches include Elkhart, Fort Wayne, Goshen and Warsaw.
The bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 10.00% (above average) based on June 2012 data. Please refer to our financial overview of Lake City Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 13102).
Finding Interest Business Checking & Reward Checking Accounts
Since business reward checking accounts are so rare, we don't have a table of business reward checking accounts. However, we do have a table of business checking accounts that pay interest.
To find the best personal reward checking accounts today, please refer to our reward checking rate table. This can be used to find accounts available nationwide or in your state. If you're new to these tables, my rate table guide should be useful.
If you're new to reward checking, please refer to my post 10 Common Traits of High-Yield Reward Checking.