4.04% Reward Checking Account at an Alabama Bank (Keystone) read and submit comments for this post

Update 3/28/09: A reader has reported that the top rate is scheduled to fall to 4.04% APY starting April 20, 2009. See bottom of the post for the rate history.

Keystone Bank has a rewards checking account that pays 4.04% APY on balances up to $25,000 (1.15% for above) and refunds ATM fees without limit if the following monthly requirements are met: 1) 10 debit card transactions, 2) one direct deposit or auto debit, and 3) receive electronic statements. If these are not met, the rate falls to 0.25%. There are no minimum opening deposit, no minimum balance requirements, and no monthly fees.

According to the FAQ, a customer can open multiple reward checking accounts. This is nice if you have over $25k. You still have to meet the requirements for the additional account.

Update 3/17/09: A reader was told by the bank that they have decided to limit the rewards checking product to the state of Alabama. Also, it now only shows up on CheckingFinder.com for Alabama zip codes.

Branches are located in Auburn and Gadsden, Alabama. It's a new bank that was just established in 2007. It's a member FDIC (Certificate # 58328).

For other high yield reward checking accounts and to learn more about these accounts, please refer to my High Yield Checking website.

Rate History:
04/20/09: 4.04% APY
03/17/09: No longer available nationwide
01/31/09: Available nationwide per CheckingFinder
01/31/09: 5.15% APY up to $25K; 1.15% over $25K (per CheckingFinder. Bank's flash page still shows 2.50% which is assumed to be out-of-date)
04/20/08: 5.15% APY up to $25K; 2.50% over $25K