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First Bank & Trust Limits 4% Reward Checking Account to 5 States

Ken Tumin
Ken Tumin   |     |   5,670 posts since 2009

First Bank & Trust in South Dakota added the following to the bottom of its easyGROW Checking:

PLEASE NOTE: At this time we are only able to accept applications from residents of Iowa, Minnesota, Nebraska, North Dakota, and South Dakota.
The reward checking account had been available nationwide since July 2009. The 4% $25K+ nationwide reward checking accounts are now down to just two banks.

Hat tip to the reader who mentioned this news in the Open Discussion Thread




Anonymous
Anonymous   |     |   2,264 posts since 2010
I have had the RCA account with FBAT for the past few months, and everything has been great...no problems... Glad I applied and opened when I did.

If they have to do something for economic reasons, I think this approach (limiting future accounts to a narrower service area) is better than what a lot of the bank's peers have done...and that's to lower rates across the board for all their existing customer base.

I've had that happen with a couple of other RCAs, and when it did, I pulled my funds and moved them to other banks with at least a 4% rate. I believe Bank of Sierra in California took a similar approach, lately limiting their accounts to only CA residents or similar. But again, at least they kept their rate intact for existing customers.

I'm more likely to keep my funds with a bank that at least takes that kind of approach first, instead of those like Consumers Credit Union and First Arkansas Bank and Trust that simply cut their rates for all their existing customers.