Posted by William Charles on December 14, 2016
Current Savings Account Sign Up Bonuses

Published on December 14th, 2016 | by William Charles

23

[IL only] Hometown Community Banks 5.01% APY Checking Account (10 Debit Card Transactions Required)

Offer at a glance

  • Interest Rate: 5.01% when requirements are met
  • Minimum Balance: $20 to open 
  • Maximum Balance: $5,000 for 5.01% rate, balances over $5,000 earn 0.10%
  • Availability: Must open in branch, all locations in IL [Branch locator]
  • Direct deposit required: No
  • Additional requirements: 10 debit card transactions & eStatements
  • Hard/soft pull: Soft
  • ChexSystems: Yes
  • Credit card funding: Unknown 
  • Monthly fees: None listed
  • Insured: FDIC
  • Expiration date: None listed

The Offer

Direct link to offer

  • Receive a 5.01% APY interest rate on balances of up to $5,000 when you complete the following requirements (otherwise 0.1% APY rate is paid):
    • Complete ten debit card transactions
    • eStatements
  • Interest is given as points with each point having a cash back redemption of 1¢
  • Receive 10 rewards points each time you make a debit card purchase
  • Apparently you also get 2,500 points just for creating an account

amazing-account

The Fine Print

  • Interest is paid in points, redeemable for cash, gift cards, merchandise or travel.
  • Each point has a Cash Back redemption value of $0.01.
  • Points will expire four years after the date of issuance, and are redeemable on a first-in, first- out basis.
  • 5.01% APY interest is paid on the first $5,000 in your account provided 10 debit card purchases post and clear your account during the monthly statement cycle, otherwise 0.10% APY is paid on the first $5,000 in your account.  0.10% APY interest is paid on the portion of your balance over $5,000.
  • The Amazing Account is available to consumers only and is limited to two accounts per person.
  • A consumer account is one that is used primarily for personal, family or household purposes; all other accounts are business accounts.
  • eStatements required.
  • Paper statements are available for $2 per statement cycle.  Minimum Opening deposit is $20.  Rate is variable and may change after the account is opened.
  • Fees may reduce earnings on account.
  • All bank account bonuses are treated as income/interest and as such you have to pay taxes on them

Avoiding Fees

This account does not come with any monthly fees, you do have to pay conveneice fees for using Mobile Deposit, Popmoney or any ATM. You’ll get up to $10 refunded each month, or you can pay an extra $2 and get $20 refunded each month.

Our Verdict

This is probably the best rewards checking account at the moment (apart from the location restriction) due to the fact you get a massive 5% APY and the requirements are easy to meet. The points vs cash back seems a bit weird, I wonder if it’s possible to get better value than 1¢ per point with travel (it’s not with gift cards). If anybody knows more about this account, please share it in the comments.

Big thanks to reader JF for letting us know about this account.

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23 Comments on "[IL only] Hometown Community Banks 5.01% APY Checking Account (10 Debit Card Transactions Required)"

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evan
evan

should 10 transactions/month be as easy as 10 amazon reloads or has to be over a certain amount each?

AB
AB

I wonder how the taxes work for its if it is points it should be tax-free, right? That makes it equivalent to an ~8% return.

milespoints
milespoints

Most likely not. When you get TYP as a bonus from checking accounts with Citi, you pay taxes on them

TJ
TJ

You’re going to get a 1099 as interest for sure. If you live in their local area they have in the past sent out $100 for opening a checking account (any type) in the mail. The banks aren’t called “hometown banks” on the outside they are all “XXXX community bank” where XXX is the name of the town you are in. Amazon reloads definitely work, I do that myself for their promo type account they did before the Amazing account which was 2.something% on 10k after 10 debits.

adam
adam

Lots of locations near Peoria and Bloomington. Also in Macomb, great for Western Illinois students. I’m all the way up in Chicago though, so…I’ll pass.

jf
jf

Woohoo! Glad this made the cut! Its also important to mention the same bank has a 7.5% variable visa with no balance transfer fees. They have also opened a few without a hard pull but not guaranteed. They usually pull experian.

Never seen the $100 at my relatives house. That would be sweet since you would be able to get it twice!

Also dont forget you get 2500 points for each checking account you open, so its $50 free!

Corridor
Corridor

I called a branch and made an appointment to open accounts for my wife and I. The day prior to our appointment, they emailed me and said we can’t open an account because we our outside of their area. I live in Illinois and I am an 1 hour and 15 minutes away.

Any suggestions to circumvent this?

TIA

Jf
Jf

Don’t call and go to a different branch.

Jake N
Jake N

Hey Will – is this available to open online or phone or only branch? Was poking around the site and didn’t see an application option. Wouldn’t mind picking up two of these for me and my gf. Comes out to ~$200 more interest than if held 25k @ 1%!

Jf
Jf

In Branch only.

Jake N
Jake N

Gotcha, thanks! Might be worth updating the header on this post, unless it’s understood that most of these CUs are in branch only.

Corridor
Corridor

Did everyone receive the 5.01% last month? I received about 4.8%. The site still shows that it’s 5.01 is the current rate.

TIA

Eric
Eric

So It appears you can apply for this online. Maybe it’s new? But you have to click a check box that says you live, work, or go to school in one of the listed counties. I wonder if they even have the means to verify that information? Thoughts?

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