Charter Bank 6.01% APY Checking Account

I had the same fears that you did, Louise. It sounded too good to be true. I went to the FDIC site and looked them up. This is the address to their FDIC insurance certifcate http://www2.fdic.gov/idasp/externalConfirmation.asp?inCert1=32498 which shows all the unbiased stats of the company. They also reported record earnings for last year. Which also gave me a warm fuzzy about them. I went for it. It was not complicated at all but did take some time to set up the account because you have to sign all the initial paperwork by mail. After about a week, I got their debit card and set up an ACH transfer to them from an outside bank. I did get the amazing 6.01% last month, my first month, even though I did not meet the 10 POS transactions requirement. I called them and said this must be a mistake. They were very friendly and said no it wasn’t a mistake, the first month is a given. I’m very happy with their customer service. I did call them three times for a few minor questions and they were helpful and even pleasant each time. The rate has been 6.01 % for some time now but even if they drop the rate, I would probably stay with them. Of course, this is just my own experience and others my report differently. Here’s their web site address if you want to look around yourself: http://www.charterco.com … and no, I do not work for them. I live on the East coast.

I just opened a Charter Bank Turbo Checking account last week. 6.01% interest was too good to pass up. 6.01% on my money while waiting for checks to clear. Sweet! The account is FDIC insured, so I’m really not too worried there. The biggest pain for me is the 10 debit card transactions per month, but I think I’ll be able to make that work. Just with replacing my current checking/savings/brokerage/online savings combination with this one checking account, I’d be increasing my bottom line by $628.

But there’s more. I also opened a rewards checking account with Midwest America Federal Credit Union in Fort Wayne, IN. The interest rate there is even better: 7.01%! Same requirements: 10 debit card transactions,1 ACH transaction, online statements, and you only earn the 7.01% on the first $25,000 of money. The deposits are insured by NCUA (the government equivalent of FDIC for banks). Because I don’t have a firm Fort Wayne connection, I had to make a one-time $20 contribution to the Allen County Society for the Prevention of Cruelty to Animals to qualify for membership. At 7.01%, I’ll make up for that in less than two weeks.

This does mean, of course, that I’ll have to make 20 debit card transactions a month (10 for each account). But between the two accounts, I’ll be netting $1,453 a year more than I’m making now. I think it’ll be worth it.

I’d probably recommend most people just open *one* rewards checking account. But I do think it’s a great deal. I just wish I had jumped on this rewards checking bandwagon earlier!

Chris.