Maximum Earnings Checking Accounts, 5% APY

[Mermaidman]

A few smaller banks are offering so-called maximum earnings checking accounts that pay APYs higher than CDs. There are a few hurdles and limitations. For example:
-must have a monthly automated deposit or draft
-must exceed a number of POS debit transactions
-must use e-banking and e-statements
-high interest rate applicable only for a set amount in the account

If these conditions aren't met, then the interest is a pittance for that month. Other notes: No monthly fee; ATM fees refunded if other banks' ATMs used

Here is a bank that offers 5% APY for the first $25,000 in the account:
Southern Community Bank & Trust

This seems like a better deal than stashing some cash in a CD or a typical checking account. Other than the requirements above, the other pitfall is the bank lowering the interest rate. Or if the bank fails 😉

 

[sactoking]

If you meet the requirements every month without changing your banking habits, they're not bad. If not, just put the $$ into an Internet Savings account at HSBC and get ~3.5% with much more flexibility.

 

[newb111]

I have 2 of those accounts at a local bank at 6%. I pay my cable bill in $1 increments, easy as pie.