posted: May. 13, 2009 @ 11:21a
I just noticed this Bank Deals post: Kasasa - The New Name of Reward Checking and Savings Accounts.
The concept, from First ROI and BancVue, which market Reward Checking account packages to financial institutions (FIs), is very simple: Offer a variety of products from the same community bank or local credit union, which allow you to have a large total deposit amount in a Reward Checking account and a High-Yield Savings account, make donations to charities, get free music downloads. Especially for Reward Checking and HYSA, this means that you can have these at one FI instead of several. Now, if some of the FIs with Kasasa would offer a good ad hoc ACH system to push and pull funds, so that the FI could also serve as an ACH hub similar to GMAC, that would be ideal.
The HYSA APY is very competitive with those of other FIs that don't offer Reward Checking accounts. The value of this is that you could keep a large amount of money at a smaller FI and still earn excellent interest rates, despite the relatively low cap on the Reward Checking account. As mentioned above, there are other products that are part of this marketing effort.
Here's a marketing hook from the Kasasa blog:
By partnering with Kasasa, community banks and credit unions gain a level of product development awesomitude that until now was only afforded to the big banks.
But unlike the big guys (you know the ones that caused a worldwide economic crisis and might have cost someone you know their job), Kasasa doesn't use it's R&D skills to figure out how to squeeze more and more and more fees out of you. Instead, we try to figure out how to give more and more and more back to you.
Note that in order to receive the high interest rates, one still must meet the miminum requirements of the Kasasa Cash account, which typically is for each statement cycle: 10 or more debit card transactions; an ACH transaction; and receiving e-statements (i.e. paperless statements). For those who find meeting those account requirements too onerous, Kasasa wouldn't be appropriate.
Here are some links:
Kasasa Home Page
Kasasa Cash - The Reward Checking Account component.
Kasasa Saver - The High-Yield Savings Account component.
Kasasa Giving - A free checking account offering a high interest rate whose interest earnings (plus debit card transactions) are forwarded to designated charitable organizations.
Kasasa Tunes - A free checking account offering free iTune downloads.
Kasasa Providers - Both nationally available and local-only FIs that offer Kasasa accounts.
I'm going to guess that Kasasa Cash and Kasasa Saver will be the most interesting products to the FWF community.
Undoubtedly, the number of FIs offering Kasasa accounts will increase. Rates will vary among FIs for the Kasasa products. Some things to consider:
* Not all FIs with Kasasa accounts will offer both Reward Checking (Cash) and HYSA (Saver). For example, Southern Missouri Bank seems to offer Cash, Giving, and Tunes.
* In order to get the Saver APY, you apparently must meet the Cash account requirements. So you can't just not meet the Cash requirements one month and still get the Saver APY. The APY for both Cash and Saver when the Cash requirements aren't met could be as low as 0.10%.
* The Saver account might also be subject to a cap.
Please use this thread only to discuss Kasasa-related issues.
For questions and discussions about specific nationally available Reward Checking accounts, please refer to the Reward Checking Accounts (High Yield and Available to All) thread.
For questions and discussions about Reward Checking accounts in general, please refer to the Reward Checking Accounts - Issues and Discussion Thread.