Rewards Checking Account in Alabama paying 4.01% APY

August 20, 2009 6 Comments »

Anyone living in Alabama looking to deposit $100k into a high-yield, FDIC insured, interest bearing checking account? If so, SouthPoint Bank out of Alabama has a great deal on their “rewards checking account.”

Currently, they are offering an interest rate of 4.01% APY paid on all balances up to $100,000, with 1.01% APY paid on balances above that amount.

Thanks to BankVibe reader Sean for sending this one in!

One thing that slightly worries me about this rate is that it became effective back in April and has not been updated since. Interest rates in general, especially savings account rates and CD rates have dwindled drastically since then, so this rate may be on the verge of a drop.

This is a variable rate and is subject to change without notice.

Like all other Rewards Checking Accounts, you will be required to make a certain amount of debit card purchases each month. You will also need to set up at least one ACH auto transfer from this account along with enrolling to receive e-statements to earn this advertised interest rate.

Out of all the FDIC-insured, liquid savings accounts on the market, rewards checking accounts like these are by far the most lucrative so long as you can meet the monthly requirements. If you aren’t making this account your primary checking account, then meeting the monthly requirements may end up being a tad difficult. Keep in mind that if you don’t meet the requirements, you’ll not only receive a far lower interest rate, you also wont be reimbursed for ATM usage. These fees can add up quite quickly, so be sure to set up reminders so that all monthly terms are met.

SouthPoint Bank was founded in 2005 as a result of the acquisition SouthTrust Corporation by Wachovia. According to SouthPoint Bank, it was at this time that three bankers – aiming to provide a local banking institution to Birmingham area – formed this bank. Today it has just 3 locations in the area and nearly 50 employees. They control nearly $200 million in consumer deposits and $155 million in loans.

If you have experience with SouthPoint Bank, let us know by leaving a comment below!

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  • Type 0

    Doesn’t seem to be offered anymore.

  • JP

    I have one of the accounts at Southpoint and was very pleased by the interest which was posted on the first day of every month. Two weeks ago, I was notified that their rate was dropping to just over 1.7 APR but as a consolation I would be offered 60 month, 3% CDs with the option of a one time withdrawal without a penalty.Not sure what I will do now, but it was great while it lasted!

  • BankVibe

    Thanks for sharing your experience JP!

  • http://rowentaprofessional.info Ahonen

    I have one of the accounts at Southpoint and was very pleased by the interest which was posted on the first day of every month. Two weeks ago, I was notified that their rate was dropping to just over 1.7 APR but as a fonsolation I would be offered 60 month, 3% CDs with the option of a one time withdrawal without a penalty.Not xure what I will do now, but 9t was great while it lasted!;

  • JP

    Now,instead of their great rewards checking rate, they’re offering a( wait for it..) TOASTER with new checking accounts. Still looking for options better than the LOW CD rates in my area.

  • JP

    My posts concerning my experience w/ Southpoint are above. To update: Since NOBODY is offering good CD rates, I’ve procrastinated about moving my money. On the 1st day of every month, I was initially earning arount $325 in interest. When their rates changed, my earnings dropped to around $100 per month. Today, when checking my balance online, I saw that only $24 of interest was deposited into the account(even though I had met and exceeded all of the stipulations to earn interest.) I was not notified of ANY changes in their terms. I am SO angry and will be demanding explanations and making some major changes tomorrow morning(this is Sunday).I think we are going to part company. I advise staying away from this bank. JP