bank rates

First State Bank 5.03% APY Checking

Kansas City will be known for more than barbeque as savers latch onto this high-interest checking account.

Not only does First State Bank of Kansas City pay 5.03% APY on the first $25,000 in its “First Choice Checking” account.

It reimburses customers up to $25 a month in ATM fees for using machines at other banks.

The deal is similar to other high-yield checking accounts we’ve written about, such as AmericaNet’s Reward Checking.

You get one of the highest interest rates available on any type of deposit in exchange for buying lots of stuff with a check card, which allows the bank to make lots of money on transaction fees from grocery stories, gas stations and other businesses.

First State Bank, for example, requires at least 10 check card purchases per 30-day billing cycle. Fail to swipe your card often enough and the interest rate drops to 0.25% and your ATM fees won’t be refunded.

Deposits exceeding $25,000 only earn 1.01%.

Although First State only has a couple of branches in the Kansas City area, this deal is available nationwide.

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Comments (9)
1 Star2 Stars3 Stars4 Stars5 Stars (16 votes, average: 3.19 out of 5)
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9 Existing Comments
  1. BloggingBanks said:
    on March 14th at 09:30 am

    Thanks for bringing this deal to our attention. You should be careful in chasing Rewards Checking Account yields, since they could be changed at any moment. My rewards checking account rate dropped from 6.01% in December 08, to 5.01% in January to 4.01% right now..

  2. Larry Hopkins said:
    on March 15th at 09:27 pm

    BloggingBanks: What bank is that? Save us some by not joining with them!!

  3. James said:
    on March 16th at 11:06 pm

    Is this one of johns wu’s great deal?

  4. J said:
    on March 21st at 05:16 pm

    The 10 transactions must be POS–that is, you must be able to enter a PIN for each one.

  5. Always Looking For A Deal said:
    on March 25th at 12:34 pm

    To Blogging Banks, That’s still better than earning 2.75% for a guaranteed 3 months and then it drops to around 1%.

  6. Debt Consolidation said:
    on March 25th at 11:03 pm

    This is a very important knowledge. Thanks a lot for letting us know about this, especially since this is available nationwide. BTW, very important blog this is!

  7. jenn said:
    on April 17th at 04:25 pm

    what is the best short term secured loan? low intrest monthly reporting, and also who is the best high intrest sav, with short term… is it bad to switch banks?

  8. Reid said:
    on May 20th at 09:37 am

    First State Bank is only accepting applicaitons from customers who either live or work in the greater Kansas City metropolitan area.

  9. DealMaven said:
    on May 20th at 02:16 pm

    You’re right, Reid. We checked, too. First State Bank just made the change on May 19 because they were swamped with more business than they could handle. We’ve seen this happen time and again: a small bank makes a great offer and they are overwhelmed with the response.

    We’re sorry it didn’t work out for you, but apparently a lot of people benefited before they pulled the plug.

    There will likely be more rewards checking offers, but you may have seen the last one paying 5% or more that is offered on a nationwide basis.