Provident Community 4.51% Checking

It happens time and time again.

A community bank offers a great deal without having the staff or technology it needs to keep up with the avalanche of applications, and its reputation is quickly trashed.

(To see what we mean, take a look at all the angry comments on Redneck Bank’s customer service.)

Maybe the smart thing for community banks to do is out-source the online application process.

That’s what Provident Community Bank, with five branches in and around Union, S.C., has done for its Dream Checking account.

It’s hired the same company that provides the online sales pitch and application forms for First State Bank of Kansas City’s high-yield checking account.

It isn’t rolling in kudos, but it sure hasn’t suffered the same beat down as Redneck. (First State has also been swamped with new accounts and began accepting applications from Kansas City area residents only last week.)

Provident Community is paying 4.51% APY on balances up to a generous $50,000 — the highest limit we’ve seen in a while. It also reimburses customers for all the fees they incur using other banks’ ATMs.

Aside from that the monthly requirements to earn that return are pretty standard: 10 debit card purchases and one direct deposit or automatic bill payment per month.

(If you’re unfamiliar with this kind of account, click here to learn how high-yield checking accounts work.)

One unusual drawback: Provident Community charges a $20 monthly fee if your combined balance in its accounts falls below $10,000.