2.50% Checking Account for Balances Under $25k (Parkway Bank)


Update 11/22/09: The top yield has fallen to 2.50% APY. Refer to the bottom of the post for the rate history.

Parkway Bank has a high yield checking account called the Parkway Moneymaker that earns 2.50% APY for balances up to $25k. Balances over $25k earn 1.00% APY. Below are the full details of this account from the bank's website:

Enjoy these monthly benefits:

* Balances up to $25,000.00 earn 2.75% APY
* Balances over $25,000.00 earn 1.00% APY
* All nationwide ATM charges refunded

By meeting these simple monthly requirements:

* 10 MasterCard check card transactions
(ATM transaction not included)
* 1 direct deposit or ACH auto debit
* Log on to Parkway Bank's internet banking once
* Receive an electronic statement instead of a paper statement

With the Parkway MoneyMaker Account, you will always benefit from:

* Only $100.00 required to open account
* $1,000.00 overdraft privilege**
* No service charges
* No minimum balance
* Unlimited check writing
* Free ATM/Debit card upon approval
* 90 days of free online bill pay***
* Free internet banking

A branch visit appears to be required to open a new account. Branches are located in Arkansas.

The bank has been FDIC insured since 1970. It has a low safe and sound rating at Bankrate.com of 1 out of 5 stars (weak).

Thanks to the reader who informed me of this new checking account.

Rate History:
11/17/09: 2.50% APY up to $25K
10/21/09: 2.75% APY up to $25K
08/20/09: 3.25% APY up to $25K
06/16/09: 3.50% APY up to $25K
04/06/09: 3.80% APY up to $25K
03/09/09: 3.91% APY up to $25K
11/05/08: 4.01% APY up to $25K; 1.00% APY over $25K
02/27/08: 4.51% APY up to $25K
09/29/06: 6.01% APY up to $25K; 1.50% APY over $25K
Anonymous   |     |   Comment #1
Would have been nice if they would have given free bill pay.

With no apparent ACH capabilities and the requirement of 10 debit card transactions (good luck trying to count those every month), I don't think the rate is gonna pull me a way from presidential.
Banking Guy
Banking Guy (anonymous)   |     |   Comment #2
Yes, that lack of free bill pay is another major downside. In small print:

Fee of $5.95 per month after 90 days; up to 15 bills per month, $.50 charge for each additional bill after 15

I called the bank today and the CSR said it requires a branch visit to open this checking account.

For those who can open this account, it also has free checks and automatic ATM refunds. The CSR wasn't sure about ACH transfer capability or a hard credit inquiry.
Anonymous   |     |   Comment #3
Rate change as of 11/5/08: top rate 4.01% APY up to $25K; 1.00% APY over $25K.
Anonymous   |     |   Comment #4
Top rate has fallen to 3.91% APY. Other rate remains same.
Anonymous   |     |   Comment #5
Top rate has fallen to 3.80% APY. Other rates same.