Bank Deals, Checking Accounts

Open a Sovereign Bank checking account package by July 31, 2011, and you could earn a cash bonus. To earn a cash bonus you must make five debit card purchases by Sept. 5, 2011.

Banking packages that are eligible for the cash bonus are the Premier, Preferred and Classic accounts. All three banking packages require you to:

• Deposit a minimum of $25 to open a checking account
• Deposit a minimum of $10 to open a savings account
• Enroll in online banking
• Request a MasterCard debit card when opening an account

Once you complete the requirements for the cash bonus, the money will be credited to the checking account by Oct. 15, 2011. Premier checking packages receive a bonus of $100, Preferred packages receive $75 and Classic banking packages receive $50.

The Premier Checking Account is an interest-bearing account. It has no monthly fee if you have a combined balance of at least $15,000 on checking, savings, money market, CDs, IRA and loans. That minimum balance will rise to $20,000 Sept. 1, 2011. The Preferred Checking Account also earns interest. There is no monthly fee on this account with direct deposit or qualifying balances. The Classic Checking Account has a low balance requirement and no monthly fee with an average daily balance of $500.

Beverly Hills, Calif.-based Excel National Bank has a Premium Money Market that earns 1.05 percent annual percentage yield (APY) on balances of $100,000 and up. The money market account is good for customers who want higher interest rates on higher balances and can limit their transactions. Details of the money market offer include:

• Minimum opening deposit of $1,000
• $20 monthly service fee
• Monthly service fee waived for minimum daily balance of $10,000
• Up to six debits per month, including checks
• Free online banking and bill pay
• Interest compounds daily and is posted at the end of each month

Excel National Bank also has a 2-year certificate of deposit that earns 1.01 percent APY. The CD rate is currently good for balances. The bank offers other CD rates and terms that include:

• 3 months earns 0.3 percent APY
• 6 months earns 0.5 percent APY
• 1 year earns 0.8 percent APY

The minimum opening deposit for certificates of deposit is $10,000 and there are no monthly service fees. Interest on CDs compounds daily and is credited upon maturity unless you choose to to receive interest payments. Withdrawing funds early from a certificate of deposit may result in a penalty.

Chase is offering special banking options to military families. The Military Banking program is for active and reserve members of the U.S. Armed Forces. Military personnel who have a Chase checking account will automatically be upgraded to a Chase Premier Plus Checking Account. With direct deposit the checking account includes the following features:

• No monthly service fee
• Interest earned on account balance
• No ATM fees for all non-Chase ATM transactions
• Free checks
• Free safe deposit box
• Chase Plus Savings with no monthly service fee and higher interest rates
• Two additional Chase checking accounts with no monthly service fee
• No fees for money orders, official checks and travelers checks at branches
• No fee on wire transfers
• Insured by the Federal Deposit Insurance Corp. (FDIC)

Chase also has credit card offers for military personnel. The Military Star Rewards MasterCard has a 2 percent cash back bonus offer for purchases made the first 60 days the account is open. The Air Force Club Membership MasterCard offers 2 percent cash back at AAFES locations, the exchange and commissary. The Army MWR MasterCard offers 2 percent cash back on base at Force Services merchants, MCCS, MWR, exchange and commissary.

AloStar Bank of Commerce has a 1-year CD rate of 1.27 percent annual percentage yield (APY). The CD rate is above the average rate of 0.66 percent APY for a 1-year certificate of deposit. The interest rate is current as of July 11, 2011. Other CD rates and terms include:

• 0.26 percent APY for 30 days
• 0.81 percent APY for 90 days
• 1.12 percent APY for 6 months
• 1.08 percent APY for 9 months
• 1.17 percent APY for 17 months

You need a minimum opening deposit of $1,000 to open a certificate of deposit at Alostar. Interest is compounded daily. For CDs of 12 months or less any interest earned is paid at maturity. For CDs with terms over 12 months interest earned is paid annually. There is a substantial penalty for withdrawing funds early.
The bank also has a money market account that earns 1.06 percent APY on balances of $50,000 and up. Balances below that amount earn 0.5 percent APY. The money market offer is good for new customers who deposit at least $50,000 and for existing bank customers who transfer at least $25,000 from an external account. AloStar Bank of Commerce is based in Birmingham, Ala.

Some banks are using customers’ shopping habits to generate a new revenue stream. According to CNN, some retailers are using data supplied by banks to send out targeted offers to potential customers. The messages may come via emails, texts or in bank statements. Should you be worried?

According to CNN, “The banks don’t actually hand over your data to retailers. Instead, retailers describe what type of customer they’d like to target and the bank then sends the deal to customers who fit the profile. When the customer cashes in on the deal, the bank gets paid a commission.”

If you are uncomfortable with your data being used in this way, you have the right to opt out. But more banks are using this approach to generate funds, since they get a cut of successful transactions. In fact, such deals are expected to bring in about $1.7 billion to banks by 2015, forecasts research firm Aite Group.

But you may also view these types of programs as incentives for doing business with certain banks. Many people look for credit card offers with rewards programs, and these type of targeted discounts may become more popular with consumers looking for shopping deals.