Checking Accounts, News and Notes

Three banks are entering the online payments race and will let customers send money from checking accounts to other individuals with an email address or cell phone number. Bank of America, Wells Fargo and J.P. Morgan Chase launched the new service in a bid to compete with PayPal, according to the Wall Street Journal.

PayPal is the biggest electronic payment service out there. There are other companies out there trying to cash in on the popularity of online payments, so the banks are facing other competitors. The service is initially being offered free by the banks. While many banks offer the ability to send electronic payments, customers usually have to provide more information than with the new service. The service also does not require checking account holders to register for a separate account to move money the way PayPal does.

Many banks are looking to retain customers and find new sources of revenue. The Wall Street Journal article states that “U.S. households made more than $865 billion of payments between individuals through 11 billion transactions last year, according to a survey from consulting firm Aite Group LLC. That amounts to roughly $7,500 and 96 transactions per household.”

Cleveland-based KeyBank is offering an iPod Touch for opening a checking account. You must open a qualifying checking account online by June 24, 2011, with offer code ONTS0311. You also must make at least 20 payments or purchases per month for three months and make three direct deposits of at least $500 within three months of opening an account.

There are several checking accounts that qualify for the offer, including:

• Key Express Checking, which has no monthly service charge if you make $500 in deposits or intitiate five transactions per statement cycle
• Key Privilege Checking, which has unlimited check writing and reimbursement of up to $6 of ATM fees from other banks
• Key Coverage Checking, which waives the first two overdraft or return item fees assessed per monthly statement
• Key Privilege Select Checking, which has unlimited check writing and automatic daily sweep with several investment options
• Key Advantage Money Market Checking, which is a full service interest-bearing checking account and has no check fees or limits

If you open an account and qualify for the iPod Touch, it will be shipped within 90 days. The offer is for people who did not have a KeyBank checking account as of March 25, 2011. Individuals who have opened a KeyBank account within the past 12 months cannot qualify for the offer.

Connexus Credit Union has a checking account that earns up to 2.3 percent annual percentage yield (APY). The Xtraordinary Checking earns the high interest rate on balances up to $25,000. Details of the checking account include:

• No minimum balance requirement
• No monthly fee
• Up to $25 of ATM charges reimbursed each month
• Free Visa Check Card
• Free online banking and electronic statements
• Free mobile banking
• Direct deposit
• 1 percent rate reduction on consumer loans
• Insured by the National Credit Union Administration

To qualify for the high interest rate you must have 15 Visa Check Card transactions clear your account by the last business day of the month and have one direct deposit made into the account by the end of the month. You also must sign up for free electronic statements and have one third-party bill clear your account by the last business day of the month. Checking accounts that don’t meet the requirements earn 0.25 percent APY. Qualifying accounts over $25,000 earn 0.5 percent APY.

Connexus Credit Union is based in Wausau, Wis., and serves employees, retirees and families of Liberty Mutual Insurance, UMR and Northcentral Technical College. However, anyone can join the credit union by first becoming a member of charitable organization Connexus Association when they make a $5 one-time donation.

If you live in Oklahoma you can open a checking account at Bank2 that earns 4.01 percent annual percentage yield (APY). The Great Rate Checking Account earns the high interest rate on balances up to $15,000. Other details of the account include:

• 1.01 percent APY on balances over $15,000
• 0.1 percent APY if account requirements are not met
• No monthly service fees
• No minimum balance is required
• Unlimited checking
• $100 to open account
• Free online banking and bill pay
• ATM fees refunded

If you also open a Great Rate Savings Account you can have the interest from the checking account deposited in it, as well as refunded ATM fees. The savings rate for the savings account is 2.01 percent APY on balances up to $35,000. Balances over $35,000 earn 1.01 percent APY and if account requirements are not met the savings rate is 0.1 percent.

Accounts at Bank2 are insured by the Federal Deposit Insurance Corp. (FDIC). Bank2 is a subsidiary of Chickasaw Banc Holding Company, which is 100 percent owned by the Chickasaw Nation. The bank is the number one source of Native American home loans in the state of Oklahoma.

Hudson City has a money market that earns 1.25 percent annual percentage yield (APY). The money market rate applies to balances of $2,500 and up. Balances that fall below that amount earn 1 percent APY. The money market rates are current as of March 18, 2011. Other details of the money market deal include:

• Interest rates are subject to change without notice
• Interest is compounded daily and monthly
• Statement format
• Limited withdrawals and transfers
• Insured by Federal Deposit Insurance Corp. (FDIC)
• Telephone banking

Hudson City also offers a money market checking account that earns interest. Balances of $25,000 and up earn a higher interest rate, which is currently 0.85 percent APY. Accounts with balances below $25,000 earn 0.6 percent APY. Money market accounts with balances of less than $10,000 are charged a $10 monthly fee. Accounts also have limited check writing and third party payments, unlimited deposits and in-person withdrawals and free debit/ATM cards.

Bank accounts at Hudson City are available to individuals who live or work in New York, New Jersey, Connecticut, Pennsylvania and Delaware. Accounts can be opened online. Hudson City has been named by Forbes magazine to be among the best managed banks in America.