bank rates

Frost Bank 2.80% to 3.05% Checking

Frost Momentum is a checking account that reward customers for making lots of debit card purchases by increasing their interest rate.

Created by Frost Bank, which has about 100 branches throughout Texas, here’s how it works:

If your balance is below $15,000, you’re paid a “base” interest rate of 2.76% for the first three months. Then the base rate drops to 0.01% (that is not a typo).

If your balance is between $15,000 and $150,000 you’ll earn a “base” APY of 2.80%, with no time limitation.

For every 10 debit card purchase you make each month, you earn a “bonus” of 0.05 percentage points, up to a maximum of 50 purchases or 0.25 percentage points.

So you could boost the APY to 3.05% for accounts with balances of at least $15,000 (but to just 0.26% on accounts with balances under $15,000 after the first three months.)

With all of these rules, you’ll need the rather cool calculator Frost provides to figure out what your returns will actually be.

But there are no fees and it’s tough to find a short-term CDs paying more than 2.80% APY, assuming you can maintain the $15,000 balance required to qualify for that interest rate.

Swipe the card at every Taco Bell drive-thru and movie theater concession stand you hit and Frost Momentum gets a little better.

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Comments (9)
1 Star2 Stars3 Stars4 Stars5 Stars (13 votes, average: 4.08 out of 5)
9 Existing Comments
  1. marketsense said:
    on March 3rd at 12:00 pm

    If they are a Texas bank, does this offer relate only to TX? I wonder if you are out of state, do they charge ATM fees to access your money because that could be a big negative.
    Can you earn the bonus on purchases made anywhere in the US/world?
    Maybe this could work if you put the higher $amt in and leave it there like a CD.

  2. DealMaven said:
    on March 3rd at 12:27 pm

    All good questions. FrostMomentum is available to customers in all states. You never pay Frost a fee to use someone else’s ATM, but you must pay that bank’s ATM fee. And any debit card purchase counts towards the bonus.

  3. dealster81 said:
    on March 3rd at 03:12 pm

    decent deal, it’s also good that it is nationawide, submitted to BankFiesta

  4. Pollniac said:
    on March 3rd at 11:52 pm

    Sounds like a good deal.

  5. BloggingBanks said:
    on March 4th at 10:28 am

    Compared to other rewards checking accounts, the yield on that one is pretty low..

  6. San Antone said:
    on March 5th at 04:57 pm

    I had been a customer for years with a checking account and when I saw this on their webste I rushed my money over there. They never offered any good rates on anything until now. Looked around and they have the best rate, a brick and mortar with real strength. I live within a mile and can transfer online from the account. So far so good for just a safe place to park a large amount of money.

  7. said:
    on March 6th at 11:57 pm

    The yield is of course lower that other rewards, but it really sounds like a big deal. I had blogged about it.

  8. San Antone said:
    on April 17th at 07:11 pm

    Update as of 4/17 that they dropped the rate about 1% so it kinda loses it appeal to online baking.

  9. mojito said:
    on April 21st at 07:30 pm

    APY is now 1.77% for balances between $15K-$150K. Its still better than what HSBC is offering with its online savings a/c, ie. 1.65%