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It’s frustrating to earn no return on checking account deposits, so it can pay to shop around for banks that offer interest.  Ally Bank has a new Interest Checking that works like a money market but offers the convenience of a checking account. Details of the offer include:

• 1.15% annual percentage yield (APY) on balances of $15,000 and up
• 0.5% APY on balances up to $15,000
• No monthly fee
• No minimum deposit required or minimum balance requirement
• No fees for using other banks’ ATMs

ATM fees for using other banks are refunded at the end of the monthly statement period. The checking account also offers free online banking and bill pay. You get free checks, a debit card, and unlimited check writing.

The account also offers a free overdraft service linked to an Ally Bank savings or money market account. You can set up balance alerts and be notified when you balance dips below those targets. You can authorize transactions by phone, online, or by ATM.

Although there is no monthly maintenance fee, other charges may apply. Those fees can include a non-sufficient funds fee of $9 per day, a stop payment fee of $15, and a returned deposit free of $7.50. The account also has a $20 fee for outgoing wire transfers.

AIG Bank has two bank deals that offer closing credits to customers who apply for a mortgage or home equity line of credit (HELOC). Details of the mortgage offer include:

• $500 credit toward closing costs on a first mortgage
• Mortgage applications must be made between Nov. 1, 2009 and March 31, 2010
• Must close on mortgage loan by June 30, 2010

The home equity line of credit offer includes:

• Credit up to $2,000 to offset closing costs and appraisal fee for HELOC in the first lien position
• Credit up to $1,000 for HELOC in a second lien position

Neither of these bank deals can be used with other AIG bank closing cost credits or promotions. You can apply for a mortgage or HELOC online or by phone.

While waiting for your mortgage to close you can park the down payment in an AIG Bank money market account. The bank has money market rates above the average of 1.12%. Money market rates at the bank are:

• 1.3% annual percentage yield (APY) for deposits of $10,000 to $49,999
• 1.4% APY for $50,000 to $99,999
• 1.45% APY for $100,000 to $249,999
• 1.5% APY $250,000 and up

The rates for the money markets are current as of Jan. 14, 2010, but can change at any time. Money markets require a minimum opening deposit of $2,500. Balances below $1,000 do not earn interest.

Looking for one of the best rates on a free checking account? Royal Banks of Missouri’s Majestic Checking Account is worth a look. The bank offers a 4.3% annual percentage yield (APY) on the checking account.

 Other details of the offer include:

• $100 minimum to open
• No minimum balance required
• No monthly service fee

The 4.3% APY applies to checking account balances up to $24,999. Balances above that amount receive a bank rate of 1.4% APY. The bank rate falls to 0.15% APY if you don’t meet all the requirements.

To earn the best rates you need to make 10 point of sale debit transactions and one direct deposit and/or ACH Debit/Credit transaction during each statement cycle. You also must receive statements online.

The checking account also offers free access to ATMs nationwide if you meet all the requirements of the account. You can receive a refund of up to $25 of non-Royal Banks of Missouri ATM charges at the end of the statement cycle. Fees are not refunded if you don’t meet all the requirements.

The checking account also offers a MasterCard debit card, free online banking, and bill pay. If you qualify, you can also get a no annual fee Royal Banks credit card.

The bank is a unit of Royal Bancshares Inc., which is based in University City, Mo.

Bank deals at smaller lenders are attracting people fed up with policies at large banks. Some customers are angry about big banks jacking up credit card rates and other fees ahead of reform laws that go into effect in February. Others are looking for more personal service.

Credit unions also are getting more interest from consumers looking for competitive savings, checking accounts, and other services. Many small, community banks avoided the predatory lending practices that contributed to so many problems in the U.S. economy. So some of them are still lending money and have competitive bank rates on various products.

However,  not all small banks are doing well. Of the banks that failed last year, 81% were small banks, according to ABC News. More small banks are expected to fail this year. “A lot of the regional and community banks are going to struggle to remain independent. We’re going to see those numbers shrinking,” Terry Moore, a managing director at Accenture, told Fortune.

If you are looking for savings, checking accounts, or other bank deals, make sure  you thoroughly investigate the services being offered and if there are any signs of a possible bank failure. Use the FDIC Bank Find to determine if a particular bank is insured by the Federal Deposit Insurance Corp. (FDIC).

You may have heard that your savings and checking account deposits are insured by the Federal Deposit Insurance Corp. (FDIC).  But do you really know what that means?

The FDIC is an independent agency of the U.S. government. The agency protects you against losing your savings, checking account, and other qualified deposits in case your bank fails. Banks must be insured by the FDIC at the time of failure.

According to the FDIC, no depositor has ever lost money insured by the agency since it was created back in 1934.

When considering whether or not to open an account, it’s important to note that FDIC insurance covers all deposits at insured banks, including:

• Checking accounts
• Savings accounts
• Money market accounts
• Certificates of deposit

The FDIC insurance does not cover:

• Stocks
• Bonds
• Mutual funds
• Life insurance policies
• Annuities
• Safe deposit boxes or their contents

FDIC-insured accounts are covered up to $250,000 per depositor through Dec. 31, 2013. After that the standard insurance amount returns to $100,000 per depositor for all types of accounts except IRAs and certain other retirement accounts.

So how do you know if your bank accounts are FDIC insured and for how much? Use the agency’s EDIE estimator tool to see if your accounts are within FDIC coverage limits.