I mentioned this in the Redneck Bank thread and there seemed to be some interest, so I figured I would start a thread.

Seems to be your standard reward checking account - with the exception that it has a $50k max to earn the "enhanced" APY instead of a $25k max; requires 12 debit transactions, ACH in or out, and electronic statements. Should be nationally available - I am in MA and had no issues opening it. http://www.westbankiowa.com/reward_me_checking. Supported by Yodlee under "Westbank".

Bankdeals Post - likely didn't get much attention back in July but now 5% APY seems to be about as good as you can do for a nationally available reward checking account, and I wasn't able to dig up any 5% APY accounts that paid on $50k balances, although I can't say I looked that hard.

You can apply online, but all you are really doing is filling out a form for someone to manually process your application. They do employment verification - I had put my direct number as my work number and they called it, but my work charges for verification through The Work Number and they aren't willing to pay, so I ended up faxing them a paystub. You will be mailed a signature card and other paperwork to sign, including choosing your PIN, and a small book of starter checks (w/o your name and address printed on them, so they may or may not actually be useful). The person who handled opening my account was very helpful and responded to all my questions via email, and emailed me login info for their website as soon as she got the paperwork back from me. Routing # is 073903354. Overall, no where near as smooth as the fully-online account opening of Redneck/Americanet bank, but the process was reasonably quick for a paper based opening.

The interface is pretty crappy - but really about the same as Redneck Bank (which is the same interface Ebank uses and I think Amtrust). There is no ACH and billpay is pretty crappy, but I've yet to find a reward checking account with an interface I actually like (which would require having Checkfree billpay), so it is unlikely I will pay many bills from it except via pull from the biller. Somewhat annoyingly, it uses your account # to login.

Edit: As suggested by PM, I have changed the title to avoid the FWF effect on the account after Redneck bank dropped their max to $10k.

Does the cycle begin at the first of the month or is there some other schedule? Also do you get a month of grace before you have to begin meeting the requirements?

need nonpin-based purchase, which if the account is less than 10 USD, the cashier would not let you do that!

Xeon852, you've got me confused. First you say that ACH in or out is a requirement, then you say there is no ACH.

I assume you meant direct deposit or billpay is a requirement -- does anyone know if you can push from another bank rather than having a paycheck deposited? Or is depositing your paycheck the only way to ACH money into the account?

ThursdaysChild said:Xeon852, you've got me confused. First you say that ACH in or out is a requirement, then you say there is no ACH.

I assume you meant direct deposit or billpay is a requirement -- does anyone know if you can push from another bank rather than having a paycheck deposited? Or is depositing your paycheck the only way to ACH money into the account?I've been pushing $10 a month from Citi for 5 months; no problems so far getting my 5%.

Xeon852 said:They do employment verification
What the hell for ?

What if one said they were retired ? If you have $50K to throw down, why should they care ?

parksh69 said:Regarding the 12 "debit" transactions per month, the website says 12 "signature-based" transactions. Does it mean that you actually have to "sign" for each qualified transaction? Or can it be just any "non-pin-based" credit card transaction? I make many credit card transactions less than $1 at drug stores, and they don't require my signature. Do they qualify for the 12 debit transaction requirement? TIA.
"Signature-based" really means use your debit card as a credit card. When making in-person transactions, select "credit", not "debit". Never enter your PIN number. For Internet transactions, indicate that you're paying with a credit card. If an option to use a debit card network presents itself, don't choose that option!

The drug store transactions should work if you follow the above guidelines, making sure that they are processed as credit card transactions. Note though that some FIs (financial institutions) that offer Reward Checking accounts frown on very small transactions. Although banks can't require you to make a transaction of a minimum amount to earn a higher interest rate, the bank could simply close your account if they didn't like how you were using it.

So far, I haven't run into problems making transactions $1 or more in order to meet the Reward Checking account's transaction requirement. This could change at any time, of course.

The application says direct deposit such as paycheck or social security check, but they confirmed an ACH push from another bank would count when I emailed them with the question.

Is it FDIC insured?

I know this question might seem silly, but I've seen posts with banks that are not, and in such an economy, just to double check.

Thanks

Thanks Xeon852.