4.01% Reward Checking Account Available in MN, WI and IA (Eastwood Bank) read and submit comments for this post

Update 11/28/08: The yield has fallen to 4.01% APY. Refer to the bottom of the post for the rate history.

Eastwood Bank is offering a reward checking account that pays 4.01% APY on balances up to $25K (0.75% above) and provides automatic ATM refunds (up to $25/month) if the following monthly requirements are met: 1) 12 purchases using the check card, 2) one direct deposit or automatic payment, and 3) receive electronic statements. If these requirements are not met the rate falls to 0.10%. There is no minimum balance and no monthly service charge regardless of meeting the above requirements.

The bank's reward checking webpage requires your browser to have the latest Flash to be able to view the details. Simple html would have been much better in my opinion. Regarding the features of this reward checking, it's pretty typical except it requires a little more debit card usage than most other reward checking accounts (12 instead of 10).

Based on the online application, anyone in Minnesota, Wisconsin or Iowa is allowed to signup for this reward checking online. A branch visit doesn't seem to be required. After the application is submitted, it looks like they'll mail you a signature card and other documentation that must be signed and returned. Branches are located in several cities in southeast Minnesota.

The bank has been FDIC insured since 1934 (FDIC Certificate # 8208).

Other Reward Checking Accounts

For other reward checking accounts in other parts of the country, please see my reward checking account page and my best checking account post.

Rate History:
11/28/08: 4.01% APY for up to $25K, 0.75% for above
06/19/08: 5.01% APY
02/18/08: 5.50% APY
08/03/07: 6.01% APY for up to $25K, 1.01% for above