Offer at a glance
- Interest Rate: 2.02% matched first year
- Minimum Balance: $50
- Maximum Balance: $5,000 for 2.02% APY rate
- Availability: Seems to be in branch only, most branches are in MN but there is one in IA as well [Branch locations]
- Direct deposit required: No
- Additional requirements: 15 debit card transactions
- Hard/soft pull: Unknown
- ChexSystems: Unknown
- Credit card funding: Unknown
- Monthly fees: $10, avoidable
- Early account termination fee: $75, six months
- Insured: FDIC
The Offer
- Home Federal Savings Bank is offering 2.02% on balances up to $5,000 when you have 15 or more debit card transactions each month. They are also matching interest earned for first 12 months!
The Fine Print
- This is a variable rate account and rates are subject to change after the account is opened.
- The APY for your account depends on the applicable rate tiers and qualifications for the statement cycle being met.
- Earn 2.02% APY for balances of $0-$5,000, and earn 2.02% to 0.06% APY on balances over $5,000 based on 15 or more debit card point of sale transactions posted in statement cycle.
- Earn 0.05% APY on all account balances if qualifications are not met.
- Minimum opening deposit of $25.
- Offer available for new Interest Advantage Checking accounts onl only.
- Bank will match your earned interest on the new account for 12 months and credit the account one time on the 13th month.
- Matching interest is considered a bonus and will be reported on IRS Form 1099-INT.
- Accounts must still be open to qualify for bonus.
- Accounts closed within 6 months of account opening will be charged a $75 early closing fee.
- Offer subject to change and may be withdrawn at any time. Member FDIC.
- All bank account bonuses are treated as income/interest and as such you have to pay taxes on them
Avoiding Fees
This account has a $10 monthly fee. It’s waived if you do have of the following:
- 1) a secured Home Federal loan,
- 2) an average balance of $5,000 or more in deposits at Home Federal,
- 3) are 24 years of age or younger,
- 4) the primary account owner has at least $1,000 direct deposit per statement cycle.
Our Verdict
Don’t think it’s worth considering after the first year as other accounts have similar rates with no requirements. Let’s say you put the $5,000 in the account for a year, you’d earn a total of $202. If you put that same $5,000 into a 2% APY account you’d earn $100. Not sure an additional $102 is worth opening a new account and having to do 15 debit card transactions every month. Especially when there are bigger and easier bank account bonuses to do.
Hat tip to reader Mark B
