4.41% Checking Account at AL/TN/MS Bank (CB&S Bank) read and submit comments for this post

Update 3/27/08: The top yield has fallen to 4.41% APY.

CB&S Bank is offering a new checking account called the Star Rewards Checking. It pays 4.41% APY on balances up to $25K. Balances over $25K earn 1.01%. It's the same model as City Bank's Reward Checking and Legacy Bank's Win/Win Checking which I posted on last month. The basic model is that you're rewarded with a high yield checking account in exchange for direct deposit, 10 debit/check chard transactions per month and receipt of electronic statements. Another perk is the automatic reimbursement of all ATM fees.

These checking accounts can be a good deal if you can get in the habit of making those 10 debit card transactions per month. The 5.61% APY on this account makes this an especially good deal. According to the CSR, this is not an intro rate although like any checking or savings accounts the rate is variable and could change at any time. I was told that no hard credit pulls are done; only ChexSystem is used when you open this account.

The CSR stated that you must visit a branch to open an account. Branches are located in several cities of Alabama, Tennessee and Mississippi.

The bank is federally insured by the FDIC.

Rate History:
03/27/08: 4.41% APY up to $25K
12/09/06: 5.61% APY up to $25K

Edit 2/22/09: Citizens Bank has changed its name to CB&S Bank.