Banks with reward checking accounts are taking a closer look at customers to see if they're profitable. Bankdeals shares a recent example, where a bank asks customers to get with the "spirit" of the program.
Reward checking accounts can pay more than a savings account or CD. To qualify for the rate, you have to meet some requirements. Generally you have to use your debit card 10 or more times per month. If not, you earn little or no interest that month.
Banks earn money when you use your debit card for purchases. That money helps them pay the above-average rates found in reward checking accounts. If you only use the card for low dollar items, the bank earns very little - and they can't afford to pay those high rates.
Interchange fees, the fees banks collect when you use your card, have been under attack recently. They raise the cost of doing business for merchants, and provide nice revenue for the banks. Given the double-whammy of interchange fee attacks and customers working the system, we may see reward checking accounts get a lot less rewarding.
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