I just checked the nationwide reward checking section of DepositAccounts.com, and I noticed these four banks are still offering reward checking accounts that are paying 4% APY on balances of at least $25K as of 5/05/2010. These accounts appear to be still available nationwide.
As we've seen many times over the last year, a rate cut is not the only thing we have to worry about. Banks have often reduced the availability of these accounts. They start out nationwide, but are later restricted to the bank's market area.
The other risk is that the bank will reduce the maximum balance that qualifies for the top rate. For example, two banks on the reward checking table with 4% yields used to have a balance cap of $25K. Evantage Bank reduced the cap to $10K last year. Capital Bank just reduced its cap to $10K in March.
Here's the list of the 4 banks with nationwide reward checking accounts that offer 4.00% APY on balances of at least $25K as of 5/05/2010. Remember that these require that you meet the monthly reward checking requirements. I've also included these accounts in a table at the top of the post which will automatically be updated as rates change. Hopefully, rates will only go up ;-)
- ViewPoint Bank - top rate for up to $50K. First post was on May 2008. Note, many readers have reported being rejected in the application process. Update 7/27/10: The account is now limited to Texas residents.
- Danversbank - top rate for up to $25K. First post was over 3 years ago so it has quite a bit of history.
- First Bank & Trust (SD) - top rate for up to $25K. First post on their easygrow checking was in July 2009. Update 5/24/10: The bank has started limiting applications to residents of SD, ND, MN, NE and IA.
- First Security Bank & Trust - top rate for up to $25K. First post was on June 2009. Update 5/13/10: The bank has started limiting applications to residents of MN and IA.
Do you have a reward checking account at one of these banks? Please share your experience.
You may be able to get a reward checking account with a rate that's higher than 4% if you live in the right area. You can find these at the reward checking table at DepositAccounts.com. Just select the "Filter Account" button at the top of the table, and then select your state under availability.