Comments on: Are Reward Checking Accounts Worth It?

By: Jim

Jim — Fri, 10 Apr 2009 18:01:32 +0000

You won’t get the reward rate the first month (when you missed the requirements) but you will get the reward rate the second month (where you meet the requirements).

By: Welby johnson

Welby johnson — Thu, 09 Apr 2009 22:57:37 +0000

what happens if you miss the requirements in one Month and meet it the next

By: David

David — Wed, 07 Jan 2009 01:43:27 +0000

I have a Reward Checking account through my credit union in Santa Fe. Meeting the criteria each month is a no brainer, I was meeting the criteria long before they offered the program and now I get refunded any foreign ATM fees. My credit union is very open about what they do and why and they have said that they are trying to build long term relationships. They are willing to pay a high rate but in return want some loyalty back (hense the requirements) and ask that we give them them first chance at all other financial services – I think its a fair request.

By: kris

kris — Tue, 06 Jan 2009 19:37:17 +0000

Pleasant hill dropped their rates from 6.125 to 5.01% on Dec 23rd 2008.

Thought I will share for anyone looking to open one.

Kris

By: Mr. Banker

Mr. Banker — Sun, 21 Dec 2008 04:10:19 +0000

I’ve noticed a bank in my area that offers this product has cut their rate from 5% to 4% recently. on the plus side they pay on balances up to $50k as opposed to the $25k I see from other banks offering reward checking.

The banks that offer this product are community banks and they focus on relationship banking. They want to get all of the business from their customers and to compete with “the big boys”. The large banks focus on transactions (transactional banking).

By: Brad

Brad — Tue, 16 Dec 2008 16:53:43 +0000

I capture 5.00% APY on my checking account with the exact type of requirements listed above with an account in Iowa. My banker friend tells me their bank has to do it to compete for the larger accounts. It’s the exact reason why they have to have so many branch banks in surrounding communities.

If you keep somewhere around the maximum $25,000 in the account throughout the year, the after-tax earnings come to about $900 (the after-tax APY on account is only 3.75% remember).

When I opened the account, it was quoted as a non-teaser rate of 5.25%. Two months later, they dropped it to 5.00%. So I now make all of my 10 required transactions at once at the gas pump. It takes me an additional 5 minutes per month to capture the 10 transactions, so about an hour per year. Not bad to be paid $900 for an hour’s worth of work.

I continue to put all other purchases on my cash-back credit cards. The bank would not be happy with me, but the game was designed by them. I’m happy to play it.

By: Patrick

Patrick — Tue, 16 Dec 2008 01:00:45 +0000

This is really a great option and allows people to go eco friendly while still getting monetary benefits from it. Erik, thanks for the great tool, I will be checking it out.

By: Alfonso

Alfonso — Mon, 15 Dec 2008 20:22:59 +0000

I find that it’s generally worth the effort. You usually don’t have to direct deposit your check. Quite often any regular debit, like autopaying your credit card will suffice. I meet the debit card transactions by paying $1 to my cable or telephone company every day for the first ten days of the month.
However, the rates can change anytime. I have switched reward accounts twice over the last year when the 6% rate dropped below 4.5%.