mariojm said:SUCKISSTAPLES said:I dont understand why all the hype???

there are DOZENS of these "reward checking" accounts out now that pay 6% and have ATM refunds, require checkcard usage, etc. It seems they all got the memo from some banking consultant to start offering this.
Q]

is there a thread in finance for high interest checking accounts? i couldn't find one.

mariojm said:SUCKISSTAPLES said:I dont understand why all the hype???

there are DOZENS of these "reward checking" accounts out now that pay 6% and have ATM refunds, require checkcard usage, etc. It seems they all got the memo from some banking consultant to start offering this.

The bankdeals blog and credituniondeals.com mention several places offering this same basic product.

Is this the memo? Strunk & Associates LP.

"Because Reward Checking is tied to other required services, account holders are converted to the use of technology-based cost saving services that strengthen your bottom line."

Benefits of reward checking to the bank outlined on the following page ...

Why go to a banking consultant ... come to FW and we'll tell you how to build the perfect checking account for free. Plus interest.

EDIT: pretty brochure (give to your local bank or CU!)

from the second page: .... The life expectancy of a typical free checking customer is 4.3 to 5.4 years. With Reward Checking the life expectancy is 8.3 to 9.2 years....

8.3-9.2 years!! LOL. the moment the rates are down, all the FWers accounts will evaporate... they are in for a surprise.

DavidScubadiver said:Don't see how they can have a life expectancy when the program is fairly new. However, the rates shouldn't drop much if you beileve the hype of that memo. If they reallydo save so much money from not mailing paper statements, and by receiving debit card fees and what-have you, maybe they CAN afford a great rate as well. I sadly filled out my appliation incorrectly last friday and failed to include various information (too quick to allow roboform to fill out apps -- it got this one ALL wrong and I didn't notice.

However, I corrected it this morning and hope I'll hear back from them shortly (though I put myself to the back of the FW line assuming anybody here has applied -- HAS ANYONE?

Many bank/brokerage houses have moved to online only statement for small/free accounts because of the cost savings. At a min they save paper, toner, postage and man power need to process your statement. Man power I need having someone fix a paper jam, change the toner cartrages etc.

Also many banks have moved to a model where they will waive balance requirements if you use there online bill payment services as that also reduces there cost to service your account in form of saving back office man power need to process your checks as most bank bill payment services tries to send out everything via EFT which saves them 100% of the man power needed. Banks are even willing to pay the postage for payee who do not accept EFT because of the savings gained which goes to show that is cost a bank more than 41 cents to process each check you write.

The reason banks love people who have direct deposit is most people only deposit there pay checks in general. So it saves them money on processing your depsosits. It also saves them money because a direct deposit is less likely to bounce.

As far as debit card fee banks collect the fees Visa/MC charge merchant(which bank collect a portion not all) are between $0.25-$0.50 transaction fee + 1-3% of the charge amount for the ablity to accept a pin based transaction. So for small purchases it is much more profitable for the bank if you use your card as a debit card vs credit card.

Even with all that being said reason most banks have a limit of $20-50K is because thoses savings amount to maybe $20-30 and the added revune per account from debit card transaction maybe addes another $10 in revune on average for the bank(assume everyone does not use the debit card for 10 $1 transaction). This model works great for small accounts as there cost savings does not increase as the accounts get bigger. Basically the are giving you back there cost savings in a hope you will buy other services from them.

DavidScubadiver said: I sadly filled out my appliation incorrectly last friday and failed to include various information (too quick to allow roboform to fill out apps -- it got this one ALL wrong and I didn't notice.

However, I corrected it this morning and hope I'll hear back from them shortly

What did the website show after you submitted the first application?
How did you correct it? by submitting a second application?

Thanks for all the info you provided!

Has any successfully opened this account? If so, did you apply online? How do you like it so far?

Received my account number and routing number and package of information yesterday. I am going form memory here of the things I read, but thought the things of note that are worthwhile:

1) Debit card has a cash limit of $200 per day. Combined cash/purchase of $1,000 per day. [Edited: at my request, they upped the cash limit to $500 per day].

2) Debit card charges $15.00 for disputed items. I am not sure I've ever seen that before and find it hard to believe it is enforced, but then again, why not. If they have to deal with our disputed charges, it should not necessarily be on their dime. Looks like I'll be using it for food purchases only.

3) They claim to make funds available the business day after the business day they receive the deposit. Though they reserve the right to put a longer hold on funds if they think it necessary (and they will advise you if that is the case). I think there is a hold period of up to 10 or 12 days for the initial deposit).

4) They pay interest on the 15th of the month.

5) It will take 1-2 weeks to get the debit card. [edited: It took 3 weeks]. However, one earns the higher rate on the initial deposit and any deposits made before the 15th of their first statement cycle as confirmed by their CSR with whom I've been corresponding (this is stated explicitly on the TwinStar website offering a similar product but not available to out-of-stater's. It is nowhere in writing that I found on the Bank of Toledo Site nor did I see it in the welcome materials, but I believe her. Still, I don't want to tie up a chunk of my money before I have an ATM card. [Edited: They extended the "grace" period by another month since it took 3 weeks to get the card...I now have a lot of money with them. YAY!]

6)You are asked to sign a deposit agreement and sign the Debit-Card agreement and have them separately notarized. By this, I mean, they include two slips of paper that are to be notarized (requiring you to provide state-issued ID or passport) and the slips refer to "The above instrument" but there is no such instrument as the notary "slip" is not part of the actual application. I think this is just there way of making an "in-state" form without the notary block usable out-of state -- in other words they lack the ability to change their forms and feel the need to have the ones they have, notarized). My suggestion is that you write on the "notary slip" a reference to the deposit form/signature card and include your account number (which they provide you with your welcome packet) and also with respect to the Debit card. I am an attorney and a notary. A "separate" notary form really can't be used for anything but its best to identify what it is that they think you are notarizing just in case!).

7) I registered for the internet/electronic statement access. You have to do that manually with your account number. Remember you need to have electronic statements to get the great rate so don't forget to do this. After "registering" with username and password and security question it thanks you and says your application is awaiting approval. They are using "fundsXpress" for this part of their website. E-mail confirmation "You should get a confirmation as to your application status in the next 7 days." (I assume it was okay to apply before sending back my notarized forms, but we'll see).

So far, I am thrilled. I know its a pain to open the account but hopefully the rate will always be great and the $25.00 per month atm-rebates will be more than adequate. Oh, they charge $1.00 for out of state (IOWA) ATM uses [Edited: PLUS 7 cents sales tax on that dollar. So that tacks on an extra buck and 7 cents to be reimbursed for most of us. Still that covers all my atm usage so I have no complaints.

SUCKISSTAPLES said:I dont understand why all the hype??? there are DOZENS of these "reward checking" accounts out now that pay 6% and have ATM refunds, require checkcard usage, etc.
Agreed SIS! But beyond that, just reading the "First do this. Then do this. Next do this. Then do th~" (snip) conditions exhaust me. The amount of labor I have to invest in any one of these bank deals is a significant factor for me, and these conditions are nothing but a headache for someone like me. I don't work for any bank; they work for me.

Tytie

LOL Tytie..... And yeah, i know what you mean about going through the "hoops" with these accounts...too much bother for me...
doing 10 debit card transactions can be a real pain if you prefer (like i do) to use your Credit Card with Cash Back rewards (like my Chase Freedom Card)...

By the way, if they charge $1 atm fee for using atms out of Iowa, that would mean that, with this account, they are actually rebating two fees...theirs and the other banks...

For example, if you use an atm in your non-iowa area and the surcharge is $2, they add their $1 on to it...this would mean that, since they only rebate $25 per month (not unlimited, like some banks with the Reward Checking) then you could actually only do a maximum of 8 withdrawals per month (at $3 rebated for each)....I guess that should be enough for most people, but if you tend to make alot of atm withdrawals, you should keep that in mind, for this bank...

craig10x said:LOL Tytie..... And yeah, i know what you mean about going through the "hoops" with these accounts...too much bother for me...
doing 10 debit card transactions can be a real pain if you prefer (like i do) to use your Credit Card with Cash Back rewards (like my Chase Freedom Card)...

By the way, if they charge $1 atm fee for using atms out of Iowa, that would mean that, with this account, they are actually rebating two fees...theirs and the other banks...

For example, if you use an atm in your non-iowa area and the surcharge is $2, they add their $1 on to it...this would mean that, since they only rebate $25 per month (not unlimited, like some banks with the Reward Checking) then you could actually only do a maximum of 8 withdrawals per month (at $3 rebated for each)....I guess that should be enough for most people, but if you tend to make alot of atm withdrawals, you should keep that in mind, for this bank...That's what I said about the $1.00 fee, it tacks on an extra buck for most of us. But who uses an atm more than 8 times a month? That's crazy talk.

I don't view this as going through any hoops as I have longed for a high interest checking account for so long, I use ACH withdrawals all of the time and my office has a cafeteria that I charge my lunch at so ten debit transactions is a guarantee -- and any "Cash Back" lost on the $50-70 on lunch will be made up for with the higher rate. Plus, I see this as an extreme convenience of never having to put money in a savings account and having to transfer cash to a checking account again. I get to replace two atm cards (ING and my checking account card) with a single card. If these rates keep up I will also have all of my monthly investments taken from this account as well rather than from a the current combination of accounts.

dolmar said:craig10x said:Fundsxpress is also in "real time" similiar to BOA, and is usually linked to the superior "checkfree" bill pay....

Wow more made up facts you post. Fundsxpress offers a full turn key online banking solution to banks which includes the following from then own web page "Bill Payment and Presentment". Here is a pic of there interface which also includes E-Bills like BOA. As a matter of fact E-Bills is offered by both Checkfree and Metavante the 2 largest online bill payment processors around so just because 1 site offers E-Bills does not mean it using checkfree back end.


Just like Checkfree and Metavante they offer both "good funds" model or a "float model" as there bill payment options to banks. The only way to tell if a bank uses Checkfree over another processor for sure is if they have "Powered By Checkfree Logo" on there web page or are listed on Checkfree Master list of clients found here.

Just for your information Bank of Toledo is not listed on Checkfree list of partners but tons of small banks are listed. So it is not a mistakeDon't know if they use Checkfree or not, but don't care either. They allow you to schedule bills for the due date and don't withdraw the funds until that time, which is all I require for a bill-pay service.