Frost Bank

Frost Momentum is a checking account that reward customers for making lots of debit card purchases by increasing their interest rate.

Created by Frost Bank, which has about 100 branches throughout Texas, here’s how it works:

If your balance is below $15,000, you’re paid a “base” interest rate of 2.76% for the first three months. Then the base rate drops to 0.01% (that is not a typo).

If your balance is between $15,000 and $150,000 you’ll earn a “base” APY of 2.80%, with no time limitation.

For every 10 debit card purchase you make each month, you earn a “bonus” of 0.05 percentage points, up to a maximum of 50 purchases or 0.25 percentage points.

So you could boost the APY to 3.05% for accounts with balances of at least $15,000 (but to just 0.26% on accounts with balances under $15,000 after the first three months.)

With all of these rules, you’ll need the rather cool calculator Frost provides to figure out what your returns will actually be.

But there are no fees and it’s tough to find a short-term CDs paying more than 2.80% APY, assuming you can maintain the $15,000 balance required to qualify for that interest rate.

Swipe the card at every Taco Bell drive-thru and movie theater concession stand you hit and Frost Momentum gets a little better.

http://www.bankaholic.com/frost-bank-280-to-305-checking/