bank rates

Iowa Deal: 5.01% On Reward Checking

Farmers State Bank has a great high-yield checking account for residents of northeast Iowa.

It’s paying 5.01% APY on balances up to $25,000 in its Loyalty Checking accounts.

That’s much better than the 4% you’ll earn with the best nationally available high-yield checking accounts.

It’s also paying 1.50% APY on balances above $25,000.

That’s more than the 1% or less most high-yield or reward checking accounts pay on big balances, and beats all but the best-paying 12-month CDs.

As with so many local deals, these accounts must be opened at one of Farmers State Bank’s five branches in the Waterloo-Cedar Falls area.

Its rules to qualify for the 5.01% rate are a little tougher than average.

You must make 12 debit card purchases a month (10 is more typical for these types of accounts) and make two direct deposit or electronic withdrawals (most banks only require one).

Should you fail to complete these tasks, your entire balance will earn only 0.10% for that month.

But that shouldn’t be onerous enough to scare anyone away from this great rate.

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Comments (2)
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2 Existing Comments
  1. RateRunner said:
    on August 5th at 03:09 pm

    Pacific Alliance Bank still has a good deal on a bunch of short-term CDs for savers in California’s San Gabriel Valley. It’s paying 1.40% APY on 5-, 6-, 7- and 9-month CDs, with a $5,000 minimum deposit. That’s better than the best nationally available 6-month CD rates.

  2. CrankySaver said:
    on November 15th at 03:37 pm

    As of mid-Novmber Farmers State Bank has dropped the return on its Loyalty Checking accounts to 3.25% APY on balances up to $25,000, and 0.75% APY on balances over $25,000.