I think one of the main things the banks get from these programs is the opportunity to retain a customer after the rate falls. I switched banks after opening for a signup bonus, just because the service was better.

Another is local bragging rights. I read somewhere in FWF that SBoT recently increased their deposits quite a bit. Here's a quote from their homepage that I don't remember seeing when I opened that account:

" We have the largest deposit market share in Tama County, Iowa, making us the largest and most successful bank in our trade area."

I can see the poster in the community room right now...

So maybe they like our current behavior. With the Rewards Checking program being marketed as a package to small banks, I think we can expect a steady stream of new banks offering this, then cutting rates after 6 months. Especially after we make the marketing company successful with a string of these. I'm sure BankVue will forget to mention in their marketing materials about the drop in deposits coming down the road because of those friggin rate wh#res!

SeattleNative said:APY drop on Accelerator Checking at Twin Star Credit Union in Washington State - now 4.75% APY.

They apparently had a .75% rate drop, just like the FOMC rate cut today.

yep...that's true..i use to have accounts with City National of Taylor....although i didn't know that Bankvue had developed the concept for them...I had "Reward Checking" before it was even fashionable (lol)..

they have the same 10 debit card requirements and e-statements requirements just like the new Reward Checking accounts do (and unlimited free atm rebates)...

But their interest rate on it, has never been more then 4% at it's highest...in fact, their Reward Savings (which has no requirements) was always a drop higher (use to be about 4.39% APY)....

I think the problem is, with many of these Reward Checking accounts, is it is hard to sustain that very high rate for a long period of time (unless they cap it at $25,000)...which is why i don't open up those accounts anymore....

But if your a frequent debit card user, it's not a bad deal....

anybody have experience with 6.01% APY No Fee Checking Account from First Banking Center

I got the offer from

www.creditkarma.com

Does anyone have any interest in starting a thread that tracks both local and national reward checking accounts with caps of at least $50K? $25K-capped reward checking accounts are a dime a dozen these days, and I doubt I could be bothered to make 10-12 debit card transactions for a $25K-capped reward checking account. I think I could be bothered for a $100K-capped account, and I haven't decided about $50K. AFAIK, the only nationally available account with >5.5% APY that meets this criterion is AAFCU. In MA, one can find $100K-capped accounts like Fitchburg Savings Bank.

glxpass said:For locally available accounts, assuming your limiting, see Bank Deals - The Best Checking Accounts, where there's a list of local Reward Checking accounts by state. If Banking Guy can be convinced to keep this list updated, and if he's willing to add the cap amount to each link, then perhaps a separate FWF thread wouldn't be necessary.
As you noted, that list doesn't state the cap, and it also doesn't even include Fitchburg Savings Bank, which appears to be the best reward checking account available. This info isn't consolidated and/or easily accessible on Bank Deals.

Till now, I haven't jumped on the rewards checking bandwagon because I was doing better with Cash Back offers and other options, but now things have changed, and I'm ready to jump on.

Here's a basic question that will probably get me red, but I just want to confirm something. If I go to my utility company's website for example and setup an automatic payment of my bill as an ACH transaction to my checking account, does the bank consider this an "ACH auto debit?" That term "ACH Auto Debit" is confusing to me. It can also mean that you have to initiate the debit from the bank end and push it out.

Although a basic question, I searched and didn't find this asked in particular.

PerkGetter said:Till now, I haven't jumped on the rewards checking bandwagon because I was doing better with Cash Back offers and other options, but now things have changed, and I'm ready to jump on.

Here's a basic question that will probably get me red, but I just want to confirm something. If I go to my utility company's website for example and setup an automatic payment of my bill as an ACH transaction to my checking account, does the bank consider this an "ACH auto debit?" That term "ACH Auto Debit" is confusing to me. It can also mean that you have to initiate the debit from the bank end and push it out.

Although a basic question, I searched and didn't find this asked in particular. In my vast <rolls eyes> experience (I have rewards checking accounts at 6 different financial institutions) that particular scenario will exactly meet the definition of ACH debit. However the definition may be looser than you expect. Don't let their reduntant term "auto" confuse the issue. Even a randomly initiated ACH in or out from (for example) PayPal, E-Trade, HSBC, etc will work.

There was much discussion about this on the SBOT thread a while back. See this post and the following AHA moment by dugggg (2 posts below) which even further clarifies it.

I opened the rewards checking account at Heartland last week and just asked them about checks.

Heartland Community Bank said:We can order some checks for you. They are not free of charge. If you want to go with an introductory pack which are personalized checks, they run about $11.00. The introductory pack includes 50 checks. A full box of checks is around $16.00 and includes 150 checks. However, if you will only need a few, I can send you some temporary checks. We make the temporary checks here, so they would not have your information printed on the top.
So far, I'm impressed with the speed and professional style of the bank's communications.

3/5/08 Edit
A pack of 50 checks arrived today and my account shows a debit of $14.50 for them - ouch.
3/17/08 Edit
I wrote to a bank supervisor who apologized for ordering the wrong kind of checks and credited my account for the $3.50 difference.

Buckmann said:I opened the rewards checking account at Heartland last week and just asked them about checks.

Heartland Community Bank said:We can order some checks for you. They are not free of charge. If you want to go with an introductory pack which are personalized checks, they run about $11.00. The introductory pack includes 50 checks. A full box of checks is around $16.00 and includes 150 checks. However, if you will only need a few, I can send you some temporary checks. We make the temporary checks here, so they would not have your information printed on the top.
So far, I'm impressed with the speed and professional style of the bank's communications.

glad to know that. I just opened a joint account with them yesterday. How long does it take for them to approve your account and send you the welcome package? Should I wait until they approve me to send back the signature card that I printed at the end of the app?

Thanks!