Solera Nat'l Bank checking: up to 3% APY, NO DD OR DEBIT CARD TRANSACTIONS REQUIRED!!

Solera National Bank This checking account pays up to 3%, which is higher than most savings accounts, with no Direct Deposit or Debit Card transactions required. And since it's not a savings account, there's no limit on the number of withdrawals allowed per month.

Solera is ranked 3 stars by Bankrate... Bankrate

According to the FDIC website:

Solera National Bank (FDIC Cert: 58534) is FDIC Insured.

Solera National Bank has been FDIC insured since September 10, 2007.
It was established on September 10, 2007.

Its main office (headquarters) is located at:
319 South Sheridan Boulevard
Lakewood, Colorado 80226
County of Denver

Also, if we look at the terms...

Tiered rate account:
$.01 to $19,999.99 = 1.00% APY
$20,000 to $49,999.99 = 2.00% APY
$50,000 to $99,999.99 = 2.25% APY
$100,000 to $249,999.99 = 2.50% APY
$250,000 and above = 3.00% APY

ichaelm said: that's another good point; how many high-rate checking accounts pay 3% on balances over $250,000??!!Only a nutcase would keep a balance above $250k (unless its joint acct with $500k FDIC protection)

curtisekarr said: SUCKISSTAPLES said: ichaelm said: that's another good point; how many high-rate checking accounts pay 3% on balances over $250,000??!!Only a nutcase would keep a balance above $250k (unless its joint acct with $500k FDIC protection)
But you could keep $250,001 in order to qualify for the 3% rate.The question is whether the 3% applies to the entire balance or just the balance over $250k. The language is not clear on this point. In the former case, you could maintain exactly $250,000.00 in the account; you would earn the 3% rate and all funds would be insured. In the latter case, this isn't a very wise choice unless you have a joint or beneficiary account which raises your insurance limit.

ThePessimist said: SUCKISSTAPLES said: Only a nutcase would keep a balance above $250k (unless its joint acct with $500k FDIC protection)
Unless the FDIC has changed the rules recently, a joint account still only has $250K of protection. To get $500K, you'd need to have 2 differently titled accounts. As mttatkns points out, depending on the rate tier interpretation, having two $250K accounts might not be very lucrative.

No rule change - it sounds like you've simply had a misunderstanding of the coverage - a joint account at an FDIC insured bank most certainly does offer 500k in FDIC, you could also set 2 or more POD's for more coverage (or do so on a joint account and have a multiplier of 2 times the # of qualifying PODs for even more coverage).

jcole21 said: ThePessimist said: SUCKISSTAPLES said: Only a nutcase would keep a balance above $250k (unless its joint acct with $500k FDIC protection)
Unless the FDIC has changed the rules recently, a joint account still only has $250K of protection. To get $500K, you'd need to have 2 differently titled accounts. As mttatkns points out, depending on the rate tier interpretation, having two $250K accounts might not be very lucrative.

No rule change - it sounds like you've simply had a misunderstanding of the coverage - a joint account at an FDIC insured bank most certainly does offer 500k in FDIC, you could also set 2 or more POD's for more coverage (or do so on a joint account and have a multiplier of 2 times the # of qualifying PODs for even more coverage).
Actually, I looked, and there has in fact been a rule change. I know I'm showing my age here, but the rules changed in 1999. Before that, a joint account was still only protected for $250K.

Sadly, I haven't bumped up against the FDIC insurance limits that often, so I didn't realize they had changed.

glxpass said: mttatkns said: curtisekarr said: SUCKISSTAPLES said: ichaelm said: that's another good point; how many high-rate checking accounts pay 3% on balances over $250,000??!!Only a nutcase would keep a balance above $250k (unless its joint acct with $500k FDIC protection)
But you could keep $250,001 in order to qualify for the 3% rate.The question is whether the 3% applies to the entire balance or just the balance over $250k. The language is not clear on this point. In the former case, you could maintain exactly $250,000.00 in the account; you would earn the 3% rate and all funds would be insured. In the latter case, this isn't a very wise choice unless you have a joint or beneficiary account which raises your insurance limit.
Every tiered account I've had like this one determines the tier level based on account balance and applies the total account balance to the rate at the given tier level. The information sheet says: "Earn up to 3% APY". If it were a blended APY, that statement would be false.There are many examples of tiered checking accounts that pay blended rates: http://www.fmbonline.com/personal/checking/sky-blue-checking.htm..., most rewards checking accounts, etc. However, you've made a good point: if 3% is only a marginal rate, it would never be possible to earn 3% with the account and their advertisement would be false; consequently, it should be safe to assume that the given rates apply to the entire balance.

Good to know about the other tiered options besides Reward Checking. I consider Reward Checking accounts a different type of situation because of the requirements and usually much higher rates. It was the "earn up to 3% APY" that convinced me that would apply to the whole balance.

Unfortunately, this account might only be for Colorado residents. I've left a message for a call back. They've just the one branch, and the "about us" page says:

Solera National Bank is focused on serving the diverse consumer, professional and small-business markets of Colorado. We invite you to step through the portal to a new banking era.

We shall see.

ThursdaysChild said: oh, I don't know, it would be false if they said "earn 3%" but what's wrong with "up to 3%"?
Deleted. Better answer above.

LINK
Ken at Bankdeals posted a message about this account today. Since he posted a link to my thread here at FW, I've posted a link to his message. To sum up, yes, you may open an account by mail, yes, joint accounts are allowed, and if you have $250K in the account, the entire $250K receives the 3% rate.

I post at many finance-related forums and blogs, but this was the 1st message that I've posted here at FW. So hopefully this will provide useful to others.

I received this e-mail from the Branch Manager at Solera about opening an account remotely:

Hi glxpass,

Best Regards,

In order to protect privacy, I've omitted names. You can call the bank's main number: 303.209.8600 and ask for the Branch Manager or Personal Banker. They can e-mail the Customer Affidavit.

They use Deluxe Detect instead of ChexSystems. No hard credit inquiry is done unless Deluxe Detect reveals warnings or cautions about you. I'm unclear what those are; perhaps trouble with identity verification would be one case.

Solera Bank is considered well capitalized and far exceeds the requirements for that, according to the Branch Manager.

ETA: Solera requires copies of two forms of ID:

* Primary: a state-issued picture ID or a passport.
* Secondary: another primary ID, credit card, insurance statement, birth certificate, military ID.