Citizens Bank is now offering a new checking account called the Star Rewards Checking. It pays 5.61% APY on balances up to $25,000 Balances over $25,000 earn 1%. Its almost the same model as City Bank’s Reward Checking and Legacy Bank’s Win/Win Checking. The basic model is that you’re rewarded with high yield checking account in exchange for direct deposits, 19 debit/check chard transactions per month and receipt of electronic statements. Another perk is the automatic reimbursement of all ATM fees.

These checking accounts can be a great deal if you can get in the habit of making those 10 debit card transactions per month. The 5.61% APY on this account makes this an especially good deal. According to the CSR, this is not an intro rate although like any checking or savings accounts the rate is variable and could change at any time. I was told that no hard credit pulls are done; only ChexSystem is used when you open this account.

The CSR stated that you must visit a branch to open an account. Branches are located in serveral cities of Alabama, Tenessee and Mississippi.

This bank is federally insured by the FDIC.