Looking for a Checking Account that Pays Over 4% APY?

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Community banks have often offered more competitive interest rates than big national banks. Now residents of Boston, North Carolina, and South Dakota can get a checking account that pays over 4% APY.

I previously talked about the benefits of community banks in the BestCashCow.com article located here. Many community banks offer higher interest rates on checking, savings and CDs; lower interest rates on auto and home loans, and they often have less restrictive lending practices. It seems that some community banks are now offering checking accounts with an interest rate over 4%.

Danversbank in Massachusetts is offering a free rewards checking account that pays 4.01% APY for balances up to $25,000 (amounts over $25,000 earn a 0.25% APY). This account requires a minimum $100 opening deposit, but there are no daily minimum balance requirements, no monthly maintenance charges, and you get refunded ATM fees nationwide. To receive the 4.01% APY and the refunded ATM fees, each month you must: access online banking, receive a direct deposit or a recurring ACH, receive your statement electronically, and perform at least 12 debit card transactions (excluding ATM transactions). For most people, these requirements wouldn’t be hard to meet each month. This interest rate has been offered since 2008.

Randolph Bank in North Carolina is offering an incredible 4.75% APY on their High Interest Extra-Mile Choice checking account. The requirements are very similar to Danversbank: you must receive your monthly statement electronically, make at least 12 debit card transactions (ATM transactions excluded), and have at least one direct deposit, bill pay or auto draft in each statement cycle. Balances up to $25,000 are eligible for the 4.75% APY, and balances over $25,000 earn 1.00% APY. When monthly requirements are met, you also get free nationwide ATM withdrawals. If you don’t meet the monthly requirements, you’ll receive a 0.10% APY (for that monthly only) and ATM fees won’t be refunded. It requires $100 to open an account, and you must be a resident of North Carolina to open an account.

Reliabank in South Dakota is paying 4.07% APY on their free Ultimate checking account for balances up to $25,000, and 1.01% APY for balances over $25,000. This account requires a $50 deposit to open, but there are no minimum balance requirements after that. To get the interest rate, you must have 15 CheckCard transactions per statement cycle, receive statements electronically, and have at least one direct deposit, bill pay, or automatic debit per statement cycle. For months when you don’t meet the requirements, you’ll be paid a 0.10% APY. You must be a resident of South Dakota to open this account.

These interest rates are even better than some of the best CD rates around, and these offers serve as a reminder that you should never overlook community banks when you’re looking for great banking options.

For the best information on rewards checking click on the "Checking" tab above, or for the best information on savings account and money market rates click on the "Savings" tab.

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