Another Top Nationwide Reward Checking Account Restricts Availability


With a 4.30% APY for balances up to $25K, Royal Banks of Missouri had the highest rate for a nationwide reward checking account since Bank of the Sierra cut its reward checking rate in early December. It looks like they are no longer offering this account nationwide. A reader just noticed that it's no longer showing up for most zip codes at CheckingFinder. The bank still has the link to the CheckingFinder application at its reward checking page. I gave this a try, and sure enough, it didn't accept my Texas zip code.

This coincides with another change the Royal Banks of Missouri is implementing. The number of debit card purchases required per month is going up from 10 to 15 starting on March 9, 2010. At least they're maintaining the 4.30% APY, and they're giving plenty of notice of this debit card change (see review).

It's clear that banks are having a difficult time maintaining high rates on their reward checking accounts. When most online savings accounts pay less than 1.50%, it's probably too much to expect for reward checking accounts to be able to pay over 4%. The money banks get from debit card usage can only help so much.

In the last year we've seen many banks reduce the nationwide availability of their reward checking accounts. Nationwide reward checking accounts probably attract more serious savers who will keep close to the balance cap and won't make large debit card purchases. Banks that offer it only to their local market area will likely get more of the average Joes who will keep smaller balances with higher debit card use, and they will probably be more likely to overdraft which is a high profit area for banks.

There are still several banks offering reward checking accounts with rates around 4% that are available nationwide. Most have a $25K balance cap, but there is one with a $50K cap (I just confirmed it's still nationwide). The full list of reward checking accounts is available at the reward checking section of DepositAccounts. Note, the US map indicates that the account is nationally available. We'll be changing the status of Royal Banks soon. Unlike rates, availability can't be easily checked by automatic means.

Thanks to the reader who noted this change at Royal Banks.


walt (anonymous)   |     |   Comment #2
January 29, 2010 - La Crosse, WI

Effective Monday, February 1, 2010, Coulee Bank's Annual Percentage Yield for Rewards Checking will be changed to 3.33% APY. This adjustment is necessary due to the prolonged low interest rate environment that we find ourselves in, as a result of the soft economy.
It has always been our intention to keep the yield on Rewards Checking at a level that it is competitive and attractive to both our local and national customers. Even with this adjustment, our yield percentage is still the highest in our region and one of the best you can find nationwide.

Should you have any questions regarding this matter please contact us at 608-784-9550.

Thank for you banking with us,
ae5880 (anonymous)   |     |   Comment #3
With some creativity, this account can be made available nationwide again. On the very first CheckingFinder page (where it's asking for your name and e-mail) enter a Missouri zip code instead of your own, and voila! I entered 63130 (from the bank's Contact Us page, and my app was approved even though I live in another state).
3.51% Reward Checking Account at Royal Banks of Missouri

Update 4/15/2010: The top rate has fallen to 3.51%. Refer to the bottom of the post for the account history.

Royal Banks of Missouri has a reward checking account called Majestic Checking that pays 3.51% APY on balances up to $25,000 (1.40% for above) and refunds ATM fees of up to $25 per cycle if the following monthly requirements are met:

  • 10 point of sale debit card transactions (15 starting 3/09/2010)
  • 1 direct deposit or ACH debit/credit
  • E-Statements

If these are not met, the rate falls to 0.15%. The minimum initial deposit is $100. There...

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4.15% 12-Month CD at a Missouri Bank - Add-On Feature (Royal Banks)
Royal Banks of Missouri is offering a special 4.15% APY 12-month CD. The minimum deposit is $1,000, and the maximum is $250,000. It allows you to add money to the CD anytime during the term ($500 minimum to add).

The bank is also offering a reward checking account with a top yield of 5.10% APY (see post).

It appears a branch visit is required to open an account. Branches are located in Saint Louis, Missouri.

The bank has a 4-star rating (excellent) at BauerFinancial and a 3-star rating (performing) at Both are...

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