The Shrinking List of Nationwide High-Yield Reward Checking Accounts
We learned again that reward checking accounts with top rates available nationwide don't last long these days. The latest bank to fall off this list is First Clover Leaf Bank. On September 14th, I reported that this bank's 4.01% reward checking account was available nationwide. I'm afraid that has ended. The bank just made three big changes to the account: 1) It now requires a branch visit to open, 2) the yield fell to 3.85%, and 3) the balance cap fell from $25K to $15K. It's rare for a bank to make this many changes so fast.
Another unfortunate reward checking account change is the rate cut at Danversbank. Readers had reported this several weeks ago, but the bank just sent out emails to customers yesterday. The top yield will fall from 4.01% to 3.01% APY effective October 4, 2010. Danversbank had been offering this 4.01% APY since April 2008. Before that time it had been 6.01% APY.
That will leave South Division Credit Union as the only nationwide reward checking account with a 4.01% APY for balances up to $25K. This Illinois credit union is considered nationally available since its field of membership makes it easy for anyone in the U.S. to join. However, it's a small credit union which primarily serves an area in the Chicago suburbs. I would be interested to know if anyone from outside the Chicago area has been able join and open this account. Since it's a small credit union, I'm skeptical that it's an easy application process.
If you want to reduce the chance of seeing rates fall soon after you open a new account, you may want to settle for a low-to-mid 3 percent yield range. Three banks on my recent list of the 5 best nationwide reward checking accounts continue to pay between 3.26% APY and 3.50% APY for balances up to $25K. Hopefully, these rates will continue into October. All have online applications that can be done in any state (at least as of today). If you're lucky, there will be a bank or credit union in your state or local area that offers higher reward checking rates. You can find these in our reward checking account table.
http://redneckbank.com/
It looks like they will phase out these accounts in a year or two or they will make it not worth while the time spent to fulfill the requirements for just few dollars of interest received.
So, site editors, please do continue chasing down these rate offerings with your recommendations and discount us. We are not looking for deposits, as one of your editorial comments seemed to stumble upon recently. Nor are we looking for banking consumers only interested in out-gaming their financial institutions and then moving on. That role reversal is about as hopeful as the grudge gambler coming back and breaking Las Vegas.
What we are looking for is that minority of responsible citizens who have never forgotten the original American School of Economics; that is ordinary people aspiring to greatness by building their democratic communities through mutual participation. The silk stockings of modern Wall Street and their wannabe followers need not apply.
South Division Credit Union (if that's really them) have some nerve blaming people like us for taking advantage of their silly little "open an account and get a toaster" deals. Who do you blame when a bank is giving away free money... the bank that is giving it away or the people that are taking it?
We may rate chase, but we are also very loyal to the institutions that treat us right. Unfortunately, rate chasing has come down to a method of survival for some of us.
Thank you to express your attitude clearly here and prior to our applications, most of us would not get near you with such a great attitude:D
Not sure such a "nice and discriminative attitude" is your general culture/policy or just your specific disposition. Can you share your position at the credit union?
Thanks again:-)
BTW, for those that I applied to SDCU, did they do a HARD credit pull when you applied? It happened to me with a few credit unitions :-(.