West Bank Iowa Reward Me Checking

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.

These guys have a better offer:
Coastal FCU

They only require 10 debit card transactions and it is for up to 50K at 5.01%
It is open nationwide (I called 3 times already).
The nice thing about CU is that they do share branching. So, you can go to any credit union in the USA that participates and deposit/withdraw money w/o a problem

Unfortunately, I just opened an accnt w/americanet bank. I don't want too many hits on my credit.

jomarrod said: BTW, I just found out the following about americanet bank:

AmericaNet Bank & All America Bank are the same financial institution. Deposits held at AmericaNet Bank & All America Bank are not separately insured by the F.D.I.C.

What does that really mean and how does that affect my money in the bank in case it does out of business?

All america bank is the parent company of redneck bank as well. I wonder if the FDIC message is the same...
No offense, but you really shouldn't post exactly the same information in at least three different threads. You'd possibly get three separate answers, which is a waste of time for those who want to answer your question. And it's a waste of time for those reading the duplicate posts, especially in an inappropriate thread.

craig10x said: glx...he doesn't seem to understand that that is simply the internet division of All America Bank..which is really who his account is with and where his fdic insurance coverage is with.......i tried to explain it to him in detail on the other thread

No, I do understand. Sorry about the multiple post.

jomarrod said: craig10x said: glx...he doesn't seem to understand that that is simply the internet division of All America Bank..which is really who his account is with and where his fdic insurance coverage is with.......i tried to explain it to him in detail on the other thread

No, I do understand. Sorry about the multiple post.
Not a problem, and thanks taking my post in the spirit in which it was intended.

awmoore said: I'm still very interested if anyone knows if West Bank of Iowa does a hard pull. Thanks

Yes, hard pull on EQ & EX.

jennatx said: awmoore said: I'm still very interested if anyone knows if West Bank of Iowa does a hard pull. Thanks

Yes, hard pull on EQ & EX.
Are you sure about that? Bankdeals said no hard pull, and I haven't seen a hardpull show up yet for my app.

I found a discussion of a different account type at West Bank (Smarty Pig savings account) where a CSR told someone "While we typically do not have to make a hard pull on the applicant’s credit file, there are situations where this is the only way we can complete the industry regulated verification process." Perhaps they do a hard pull if they're not satisfied with the aforementioned employment verification or something?

http://www.getrichslowly.org/blog/2008/08/19/smartypig-a-goal-or...
Note comments #32 and #38.

rustum said: kjgco said: 2stepsbehind said: 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?1) My cycle ends on the 4th Wednesday of the month; YMMV.
2) I did get a 1 month grace period.
I've had an acct there for 5 months now, and have been relatively satisfied with their service (interface aside). Also, I've only used the debit card to pay Comcast 1.01 12x a month, and have never had a problem receiving the 5%.
I am staying away from these considering the 10/12 debit card transactions. Is it ok to do 10/12 penny transactions? Like using the debit card at grocery store once with each item / paying timewarnercable bill 10 times.
Personally, I wouldn't make one-cent transactions in order to meet the number of transactions requirement. Reportedly, some FIs that offer Reward Checking accounts have closed people's accounts for doing this type of thing. All my transactions have been $1.00 or more and thus far I haven't experienced AA (Adverse Action) from any of my Reward Checking accounts, even the one (Southern Missouri Bank) that says:

MasterCard check card transactions should be for ordinary and customary expenditures, not simply 12 de minimis transactions designed to qualify for rewards requirements.

The current statement cycle just ended, so I'll see if my "no adverse action" statement still holds true.

Everything went fine this month; no adverse action.

NewToFatWalletUser said: ACH Push/Pull from other banks, or even PayPal, will work? I assume this isn't only direct deposit.Don't know about PayPal, but Citi ACH push/pull has worked for me for a few months now.

I had my papers in hand three days later.

for those of you that have not rate chased to a different 4%....

Statement cutoff = 9/22/2010.....