Paramount Bank High-Interest Checking (non-RCA) Is A Rate Leader

POSTED ON BY

Deal Summary: High-Interest Checking, 0.85% APY on all balances

Availability: Nationwide

In another relevant Forum post yesterday, DA reader, ichaelm, pointed out that the 0.85% APY offered on Paramount Bank’s High-Interest Checking “beats most savings accounts [rates].” The nationally available High-Interest Checking account is NOT a rewards checking account. I’m just going to quote ichaelm for some of the details, because I really enjoyed his description:

There are NO direct deposit or debit card usage requirements to receive the rate. No out-of-network ATM fees, and they'll reimburse you up to 20 out of network fees PER MONTH. The minimum balance to avoid a [$3] maintenance fee is, I kid you not, $1.

While 0.85% APY may not seem like a competitive rate, it’s currently the highest APY available for a nationally available standard checking account with no minimum balance requirement.

APYMINMAXINSTITUTIONPRODUCTDETAILS
0.85%--Paramount Bank (MO)High-Interest Checking
Rates as of December 3, 2020.

The High-Interest Checking’s first anniversary is quickly approaching. When I first wrote about the High-Interest Checking in January 2020, the initial rate was 1.75% APY on all balances; that rate lasted about two months. Between early March and mid-June, there were three rate decreases, resulting in the current 0.85% APY.

There is no monthly service fee or minimum balance required to earn the stated APY, but there is a $100 minimum deposit requirement. There is unlimited check writing, with a free VISA debit card available. (According to CSR, if checks are purchased through Paramount Bank, the cost is between $35 and $45, depending on the specific checks chosen.)

CSR also stated that unlimited beneficiaries (Social Security numbers required) can be added using the online application. Paramount Bank’s online banking platform supports bill payment services, mobile deposit, and account management (including ACH transfers). And speaking of ACH transfers, the current limits for transfers initiated by Paramount Bank are low: $5k per transaction and $10k per day.

Availability

Headquartered in St. Louis, Missouri, Paramount Bank may be one of the smallest banks in the St. Louis market area, but it has been offering its product line on nationwide basis for for about a year. U.S. citizens and resident aliens (18 years or older), with a valid Social Security number and a physical address in the United States, are eligible to apply.

Opening a High-Interest Checking account can be done online. The lobby of the sole Missouri branch, located in the Village Square Shopping Center in Hazelwood, is open to the public with "preventative and containment measures to protect our employees, customers, visitors and community.“

Bank Overview

Paramount Bank has an overall health rating of "B" at DepositAccounts.com, with a Texas Ratio of 15.58% (above average) based on June 30, 2020 data. In the past year, Paramount Bank has increased its total non-brokered deposits by $39.3 million, an excellent annual growth rate of 121.55%. Please refer to our financial overview of Paramount Bank (FDIC Certificate # 57884) for more details.

Paramount Bank was established in December 2017, when Paramount Financial Group bought Superior Bank, a St. Louis area bank that first opened its doors in 2004. Superior Bank had struggled for years, starting with heavy losses from loans gone bad during the 2008 financial crisis. According to a January 2018 St. Louis Post-Dispatch article,

They plan to beef up online services, sell other banking products to Paramount’s mortgage customers and use the bank charter to significantly expand the mortgage company.

The eventual plan is to merge the mortgage company into the bank, Paramount Chief Executive David Griege said. A bank can lend in all 50 states, but an independent mortgage company must obtain a license in each state where it operates. Paramount is licensed in seven states.

Paramount Financial Group brought $5 million in new capital to the acquisition, in an effort to make the Bank profitable. Paramount Bank currently has assets in excess of $171 million and deposits of $100 million.

How the High-Interest Checking Compares

When compared to 165 standard checking accounts tracked by DepositAccounts.com that require a low minimum balance and are available nationwide, Paramount Bank’s High-Interest Checking APY currently ranks first.

Interest RateAccount NameCredit Union/Bank
0.85% APYHigh-Interest CheckingParamount Bank
0.60% APYChecking AccountSimple
0.50% APYAdvantage Checking AccountMy eBanc

The above rates are accurate as of 11/20/2020.

Looking for the best checking accounts rates, either nationwide or state-specific? Please refer to our Standard Checking Rates Table page.

Related Pages: St. Louis checking accounts, checking accounts, nationwide deals

Comments
RichReg
  |     |   Comment #1
Nice rate for an everyday, bill-paying checking account. Noticed the interest rate is tiered, with first tier threshold @ $5000; though at this time all tiers pay the same.

Many Internet checking accounts similarly reimburse ATM fees, and while they may only pay .40-.50%, also have a bill-pay service which is nice for on-the-fly payments. Some even have free 1st check orders, as charging $35 for checks is gouging IMO....
craig10x
  |     |   Comment #2
I tried doing the application...really hopeless...you try to upload your drivers license and photo as they request...FAIL...then you fill in the information manually and you get a series of security questions with some of the worst questions i have ever seen which are extremely difficult to get right...FAIL...I tried the application 4x and couldn't get it to accept it...Gave up! LOL
jofr4646
  |     |   Comment #3
Paper checks, ???
craig10x
  |     |   Comment #4
You can use paper checks but no free ones...$35 for a box...so you'd want to use a 3rd party check provider like Checks Unlimited for example...That's if you can get the darn application to process...if anyone does...i'd love to hear about it...
Rickny
  |     |   Comment #5
If your looking for a savings account Connect One Bank is paying .8%. No 25k limit. No checking.
craig10x
  |     |   Comment #6
5th Times the Charm.. LOL I decided to give it one more go and this time SUCCESS! Application went through...I didn't try to upload my drivers license and photo this time and in fact, sent it to them on a separate email to hopefully speed up the process a bit...

This time i answered every security question perfectly which is the key to successfully getting through the application....each time you try the application it gives different questions so i guess sooner or later you'll hit it right...

Other than no free checks (i will get some from Checks Unlimited seems like a nice set up since you can use it as both a checking and savings account with a good rate...And they rebate atm fees also...and no requirements of course...
RichReg
  |     |   Comment #7
Good job. Now all you have to do is decide how much to "save" there and hope they don't drop the rate in 2021.
P_D
  |     |   Comment #8
2021? Boy you're an optimist! No rate guarantee here... rate could drop today.

And not to be critical of the article, but the comparison to an RCA is a bit of a stretch. A 0.85% rate without even any guarantee is not exactly competitive with a typical RCA rate even in this bad deposit market.
Paramount Bank Competitive 6-Month CD Available Nationwide
Deal Summary: 6-month CD, 1.25% APY, $1k minimum deposit

Availability: Nationwide

When Missouri-based Paramount Bank began offering products on a nationwide basis earlier this year, the CDs were uniquely structured: one rate (2.25% APY) and a single, but very flexible, term length (anywhere between 12 and 60 months). All that has changed. Paramount Bank now offers seven CDs with three different APYs. Of the seven, the 6-month CD (1.25% APY) is the most competitive. The minimum opening deposit is $1k, with no stated balance cap.

Continue Reading
Paramount Bank Product Line Available Nationwide
Deal Summary: 12-60 month CD, 2.25% APY, $1k minimum deposit

Availability: Nationwide

Missouri-based Paramount Bank is offering its limited product line on a nationwide basis. Rather than offering a variety of CD term lengths with different rates, Paramount Bank has one rate (2.25% APY) and single, but very flexible, term length (anywhere between 12 and 60 months). Obviously, the shorter the term chosen, the more competitive the rate. The minimum opening deposit is $1k, with no stated balance cap.

The 12-60 month CD is also...

Continue Reading
2.05% 30-Month No-Penalty CD at Superior Bank in St. Louis - Local Only

Update 2/22/10: The 2.20% 30-month CD yield didn't last long. The bank cut the rate after this post was first published to 2.05% APY.

Superior Bank is offering no-penalty CDs with some competitive rates. The highest rate is 2.05% APY for a 30-month term. Lower rates are available for shorter terms, but I'm not sure why you would go for a shorter term when there's no penalty for early closure. Minimum deposit is $1,000, and the maximum is $250,000. The only penalty mentioned is if the account is closed within the...

Continue Reading


The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.