3.50% Reward Checking Account at an Arkansas Bank (The Bank of Fayetteville) read and submit comments for this post

Update 3/17/09: The top yield has fallen to 3.50% APY. See bottom of the post for the rate history.

The Bank of Fayetteville is offering a reward checking account called Smart Checking. It pays 3.50% APY on balances up to $50,000 (0.40% for above) and refunds ATM fees nationwide (up to $25 per month) if the following monthly requirements are met: 1) 10 check card transactions, 2) one direct deposit or ACH electronic payment, 3) receive an E-statement, and 4) sign on to online banking. If these are not met, the rate falls to 0.15%. The minimum opening deposit is $100.

There's an "Apply Now" button at the Smart Checking page which allows you to apply online. I've confirmed with the bank in February 2008 that the account is available nationwide. Also, the account is listed at CheckingFinder for any US zip codes. You can also apply at this CheckingFinder page.

In February 2008 this bank was mentioned in this Wall Street Journal article that discussed high yield reward checking accounts.

The bank has 8 offices in Fayetteville and West Fork, Arkansas. It has been FDIC insured since (Certificate # 26975).

Rate History:
03/17/09: 3.50% APY up to $50K; 0.40% over $50K
02/10/09: 4.00% APY up to $50K; 0.50% over $50K; 0.15% if requirements not met
11/02/08: 4.00% APY (1/13/09: had been listed as 4.01%)
05/15/08: 4.51% APY
02/10/08: 5.01% APY up to $50K; 1.01% over $50K; 0.20% if requirements not met