I first posted on this reward checking account in May 2008. I added the note on the rate guarantee in October 2008. In this interest rate environment, I'm surprised they're still offering this rate guarantee.
This is one of only three reward checking accounts out of 407 on my high yield checking website that are still at 6% APY as of 6/14/09. Unfortunately, neither of these other two reward checking accounts are available nationwide.
For nationwide accounts, the highest rate as of 6/14/09 is 5.01% APY available at Coulee Bank and Founders Bank (see my nationwide list). As I mentioned on Friday, many banks have stopped offering their accounts nationwide, especially ones offering the best rates. Update 6/15/09: A reader just reported that Coulee Bank will be reducing its top rate to 4.04% APY starting on 7/01/09.
There are a few other institutions offering rate guarantees on their reward checking accounts. They don't offer 6%, but at least you don't have to worry each week about rate cuts. Below is the list of these accounts. Please leave a comment if you've seen other reward checking rate guarantees.
- 6.01% up to $25K guaranteed to 1/1/10 at United FCU in MI, OH, OK & AR (account review)
- 4.50% up to $25K guaranteed until Kentucky Derby 2010 at Commonwealth Bank & Trust Company in KY (account review)
- 4.01% up to $25K guaranteed to 12/31/09 at Artisans' Bank in DE (account review)
- 4.01% up to $25K guaranteed to 11/1/09 at Leominster CU in MA (account review)
- 2.75% up to $250K guaranteed to 9/30/09 at Allegiance Bank in PA (account review)
You can see that these reward checking rates are not teaser rates by looking at the rates from reward checking accounts that have been around for a while. At the bottom of my high yield checking page, I include the latest stats for these accounts. In addition to the average APY for all of the accounts, I also include average APY by year of when I first posted on the accounts. I posted on 83 reward checking accounts in 2007, and they have an average APY of 3.60%. It's lower than the overall average, but it's still much higher than the average rate of online savings accounts. How can reward checking accounts pay such high rates? Check out my post on the math behind reward checking accounts.
Edit 6/15/09: Added note on reward checking requirements. Added the 4.50% KY reward checking to the list.