5.25% APY on a Free Checking Account? For Real!

Well leave it to my son (just about to turn 20!) to tell me about a deal that sounds too-good-to-be-true, but seems to check out!

He learned early that you want your money to make money, so he's always looking for ways to do that...earlier there were some creative ways that didn't really make sense (LOL!). But talking them through gave him a better understanding of what he could and should look at.

So he and I were talking last night and he told me he found a site that lists the best interest rates at banks and found www.americanetbank.com that is giving 5.25% APY interest on their Rewards Checking Account. So, not wanting him to be "taken" I checked them out. And they seem to be for real.

A totally online bank (no branches) and a part of All America Bank in Oklahoma City, OK that was established in 1969. AmericaNet Bank® is a trade name and trademark owned and used by All America Bank®. A division of All America Bank® - Member FDIC.
There are reviews by both BankRate.com, which I have followed for a number of years for their articles and information, and BauerFinancial.com which was new to me but also seems to be a good resource. I also googled them and couldn't find any complaints, etc. (which some of the other online banks did have, BTW). And here is a link to the most recent FDIC data and report on it: FDIC Report

Both BankRate.com and BauerFinancial.com give it 4 stars out of 5 . The information on BankRate.com which they used to evaluate it is free, the information on BauerFinancial.com is available for a small fee, but the rating is published for free.

Now, there are, of course, requirements in order to get that interest rate - but they are not difficult, you just need to be aware of them (this is from their site):

"The only requirements are:

Make 10 AmericaNet Bank® VISA® CheckCard sales transactions**
All statements are received electronically

At the end of your statement cycle, ATM fees charged by any bank worldwide are automatically refunded in one lump sum. At the same time, you will be paid interest earned by your account. Interest earnings of 5.25% APY* are calculated on your average daily balance of up to $25,000. Amounts over $25,000 will earn 2.25% APY*."

REWARDS CHECKING is a free personal checking account that offers the highest possible interest rate of 5.25% APY*. No minimum balance is required. REWARDS CHECKING offers the added convenience of an AmericaNet Bank® VISA® CheckCard to access ATMs worldwide and for secure debit card purchases. Enjoy all of the great benefits of a REWARDS CHECKING account: 5.25% APY* FREE Online Banking FREE Checking FREE AmericaNet Bank® VISA® CheckCard FREE Customer Service FREE Daily Email Notification if Overdrawn FREE ATM Transactions Worldwide Overdraft Privilege Available NO MINIMUM BALANCE *APY is Annual Percentage Yield **Requirements must be met each monthly statement cycle to receive the rewards. There are no rollover transactions. The monthly statement cycle ends on the 3rd Wednesday of every month. Qualifying VISA® CheckCard sales transactions include each time you use your VISA® CheckCard to make a purchase from a vendor or merchant. ATM and ACH transactions do not qualify. Limit of two Rewards Checking accounts allowed per individual.

Some other places that I found information on them was at http://bankdeals.blogspot.com and at www.bankaholic.com - so check it out for yourself...I'm not a financial advisor so do your own research and make your own decisions.