A quick review of the top reward checking accounts

Since the last three years, reward checking account rates have held up better than the internet savings account rates. But the rates have continued to drop and we have seen many rate cuts in the recent times on the reward checking accounts. However, these rate cuts are not the only things that we need to worry about on the reward checking accounts. The amount of interest that needs to be paid has also been reduced by the banks by reducing the balance caps.

However, not all reward checking accounts have been affected by the rates or the balance cap cuts. There are still a good number of reward checking accounts in the country that have rates over 4.00% APY on balances up to $25k. However, these are not nationwide deals.

There is just one place which is the Danversbank which offers the reward checking account with at least 3% APY on balances up to $25k. Coulee Bank was also in this group, but has recently put restrictions on new accounts and limiting it to Iowa, Minnesota, and Wisconsin.

So, if you are looking at 4.00% reward checking accounts on balances up to $25k, then you will have to look for the local deals and you could find them in your area by using the reward checking table.

Most of the best reward checking accounts are in areas that are thinly populated. But, there are some of them that are found in the large metro areas as well. Some of them have been reviewed in January.

Recent rate/balance cap cuts

• Nassau Educators FCU had the first rate cut on its Go Green Checking since the first review in December 2008. The top rate at present is at 3.50% APY which is down from 4.00% on balances up to $25K. Membership is given to anyone from the New York Counties of Nassau as well as Suffolk.
• Southern Bank has the Kasasa Cash account that pays 5.01% APY on balances up to $15K which is down from $25K. During the first review in October 2008 the yield was at 6.01%. this is still offered to residents of Arkansas and Missouri through an online application.
• Bank of Nebraska’s also had a huge rate cut in its Investment Checking and the top new rate of 3.04% APY which is down from 4.07% on balances up to 25K.
• First Bank had a large rate cut on its Kasasa Cash account and brought it down to 2.51% APY on balances up to 25K.