bank rates

Load Your iPod For Free With Kasasa Tunes

Here’s a new twist on high-yield checking accounts popping up at hundreds of community banks.

For some time now, small banks have contracted with a Web site called Kasasa to offer high-yield or reward checking accounts.

Here's a new twist on high-yield checking accounts popping up at hundreds of community banks.While each bank sets the terms available to its customers, all Kasasa Cash accounts are opened and administered through the independent online company.

Now they’re teaming up to offer a new checking account — Kasasa Tunes.

These accounts come with all the rules and perks associated high-yield or reward checking accounts, but pay no interest.

Instead, they refund $5 or $10 a month in debit card purchases at iTunes.

That doesn’t make sense for serious savers who have been socking tens of thousands of dollars into reward checking accounts.

But it might work for checking account customers who maintain much lower balances, or are paying monthly fees, or want to use any ATM for free.

Take, for example, the deal American National Bank of DeKalb County, Ill., is offering local customers who sign up for Kasasa Tunes.

They get $20 worth of iTunes charges reimbursed for opening the account and $10 a month after that.

There’s no monthly fee and they can be reimbursed for up to $25 worth of charges for using other banks’ ATMs, as well.

But to qualify for those benefits, customers must make 15 debit card purchases a month. Fail to do so and all of those costs are on you.

(If you’re unfamiliar with how these accounts work, “The ABCs of High-Yield Checking Accounts” will explain all of the rules.)

Customers who enroll in Kasasa Cash through American National can still earn one of the best rates in the country – 4.25% APY – on the first $25,000 in their high-yield checking account.

So a serious saver with an average balance of $20,000 would earn about $75 a month in interest – a far cry from the $10 a month Kasasa Tunes offers.

But a customer who maintains an average balance of less than $2,800 could conceivably come out ahead with Kasasa Tunes – assuming that customer spent enough at the iTunes store to take full advantage of the $10 reimb

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Comments (2)
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  1. Laura said:
    on October 15th at 10:07 am

    They used to give you a toaster AND interest. Now, just the toaster — er, a few songs. Sigh.

  2. CrankySaver said:
    on October 15th at 10:34 am

    Laura, you truly made me LOL. Thank you.