Posted by Chuck on April 20, 2016
Checking Accounts

Published on April 20th, 2016 | by Chuck


Iowa State Bank 3.25% APY on up to $25k [Iowa, Nebraska, MN, SD]

Offer at a glance

  • Interest Rate: 3.25% APY on balances up to $25k
  • Additional Benefits: ATM fee refunds
  • Minimum Balance: None
  • Availability: Iowa, Nebraska, Minnesota or South Dakota – can be opened online
  • Direct deposit required: No, see below
  • Additional requirements: Yes, see below
  • Hard/soft pull: Hard (perhaps Transunion)
  • Credit card funding: None
  • Monthly fees: None
  • Insured: FDIC

The Offer

Direct Link to offer

  • Iowa State Bank offers a rewards checking account that earns 3.25% APY on balances up to $25,000 when doing qualifying actions (below)
  • An additional benefit of the checking account is that domestic ATM fees incurred will be reimbursed when doing the qualifying actions

This account can be opened online for residents of Iowa, Nebraska, Minnesota or South Dakota.

Qualifying Actions

To be eligible for the 3.25% rate, you need to do three things each qualification cycle:

  • Have at least 10 debit card purchases post and settle
  • Have at least one ACH payment or direct deposit post and settle
  • Be enrolled and review eStatements

Basically, after the initial setup, you’ll have to make 10 debit card purchases (of any amount, apparently) and have one payment or direct deposit post and settle. Any ACH should work for direct deposit so you can automate a transfer from your regular checking account on a monthly basis. Sounds like you also have to review the eStatement sent monthly.

“Monthly Qualification Cycle” means a period beginning one day prior to the first day of the current statement cycle through one day prior to the close of the current statement cycle.

The Fine Print

  • If qualifications are met, balances above $25k earn an interest rate of .3% APY
  • If qualifications are not met, all balances earn 0.05% APY
  • Qualifying transactions must post to and settle during monthly qualification cycle; transactions may take one or more banking days from the date transaction was made to post to and settle account
  • APYs accurate as of 7/16/15; rates may change after account is opened
  • If qualifications are met, Domestic ATM fees incurred during qualification cycle will be reimbursed and credited to account on the last day of monthly statement cycle, max of $20

Our Verdict

There are quite a few 3% rewards checking accounts in various regional areas – we hope to have up a list with more of these options – but this one is unique in that it’s 3.25% on up to $25k; most of the others max out at $10k or $15k.

The question remains if it will result in a hard pull, which is obviously a deterrent. Let us know if you find out more on this.

Check out our post on which high-interest savings account to get as there are a few options that offer 5% APY with easy requirements and some other 3% options; check it out to see what’s best for you. Also, see this post for some ideas on how to meet the debit card requirements.

8 Responses to Iowa State Bank 3.25% APY on up to $25k [Iowa, Nebraska, MN, SD]

  1. IOException says:

    This one has a history of floating up and down.

    The other issue is that they won’t open an account if you don’t have a local license.

  2. Joe says:

    Do they accept Money Order deposit via the smart phone APP?

  3. M says:

    No credit card funding – the only option to fund online is to ACH from another account. I got a hard pull on TransUnion.

  4. MLS says:

    I opened an account with this bank last year when I unexpectedly ended up with a chunk of money I wanted to park safely. It was a pain in the neck to open….Lots of paperwork: copy of my drivers license and social security card, and pages of papers that had to be signed and each signature notarized individually but each signature line did not have the proper space for a notary stamp. I considered giving this the go-by, but soldiered through. (On the other hand, the CSR was very helpful.)
    Once established, I haven’t had any issues. My smaller debit transactions have not been questioned. I am now looking into opening the companion Kasasa Savers account (1.25% APY no extra qualification requirements) to sweep the interest payments into.

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