TrustBank continues to offer a rewards checking account rate that seems nearly unreal. Although at 7.00% APY, TrustBank’s iChecking account isn’t quite the goldmine it appears to be — the interest rate is only applied to balances of up to $1,000.

It is a bittersweet feeling to find such an amazing interest yield on a rewards checking account just to get hit with a strict limit. The out-of-this-world 7.00% APY is restricted to the first $1,000 in the account so the maximum earnings on this rate is $70. On the amount exceeding $1,000, the yield is a measly 0.20%.

TrustBank iChecking

TrustBank operates only three full-service branches in Illinois and one in Arizona. The iChecking account is catered towards online customers and comes with free Online Banking, Online Bill Pay, TrustBank iCard debit card, and no monthly account fee.

The TrustBank iCard can perform ATM transactions for free only at nationwide Allpoint network ATMs – TrustBank will not refund any ATM fees incurred by customers. A very minor perk of the TrustBank debit card is cash back rewards. For the first 90 days, customers receive 1% cash back on all purchases. Afterwards, customers earn 0.10% on every purchase.

On balances:Up to $1,000Over $1,000Requirements not met

To earn the 7.00% APY, you must do each of the following:

  • Make at least 10 TrustBank iCard (debit card) transactions per month.
  • Receive at least one direct deposit per month.
  • Make two Online Bill Pay or automatic payments each per month.
  • Sign up for electronic statements.
  • Access your Online Banking account at least once per month.

The requirements are slightly more stringent compared to other reward checking accounts since you have to make two online bill pay or automatic payments per month and access online banking every month. Failure to meet the above qualifications will drop the yield to 0.02% APY on the entire balance.

The TrustBank iChecking account can be opened online and is available to customers nationwide. While there is no minimum balance required, the minimum account opening deposit is $100.

Comparing to Other Bank Rates

Prospective customers should consider the limited earnings potential and strict rules before jumping on what appears to be a great reward checking offer. The iChecking account would be a great checking account for the active banking customer who doesn’t have much to save.

If the requirements seem too tedious, a better option may be the 1.35% APY interest checking account from Incredible Bank. It will take $5,385 to earn $70 per year as opposed to the $1,000 for TrustBank’s iChecking account but the Incredible Checking account rate is good up to balances of $250,000.

On the bright side, a balance of $2,000 in the TrustBank iChecking account earns $72 in one year, an average of 3.60% APY – still a very nice reward checking yield. It even beats many CD rates out there – though higher balances in iChecking would reduce the average yield.

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