Incredible Bank , the new internet division of River Valley Bank, invites consumers to take advantage of their best checking account that has a high interest rate of 2.02% APY for balances through $250,000. Any deposit above $250K gets 1.00% APY. The interest rates are still posted as of November 18 but may change any time.

This high yield checking account is not a reward checking account but the current interest rate is comparable to the highest interest rates given to savings accounts. This checking account does not involve paper checks but everything is done electronically. Payments can be coursed through the free online bill payments system or by using the debit card.

Consumers who want to take advantage of the high interest rate money in the bank deal can open this checking account with an initial deposit of $1000. You can fund the account by sending in a check or by ACH transfer. You can also easily manage the account by initiating deposits or withdrawals via ACH at other banks. Account holders receive electronic statements on a monthly basis.

The bank does not impose balance requirements. The bank charges $5 for incoming wire transfers and $20 for outgoing domestic wires. Another plus is that the bank also reimburses ATM fees automatically.

Some of our readers have confirmed that the bank does a hard credit pull when you apply for this account.

Incredible Bank was just recently opened and everyone is wondering if they can keep the interest rates competitive. According to the CSR, the bank plans to keep the interest rates attractive but she doesn’t have information up to when it will last.

The bank is not that big with deposits amounting to $740 million. We have seen small banks able to keep the interest rates up but they usually hold the applications once they have reached their goals. If Incredible Bank can maintain the rates up then this might be a good long-term investment. The bank may be able to sustain since they cut the checking account costs by offering it as an electronic account without the paper checks and statements.

We also have contacted River Valley Bank to confirm if Incredible Bank is really affiliated with them. The mother company is headquartered in Wausau, Wisconsin. They operate about 18 offices in Michigan and Wisconsin.

River Valley Bank gets strong ratings from Bankrate.com and BauerFinancial. Both institutions stamped their reports with 4 stars for soundness and safety. The bank is covered by the FDIC through certificate number 19772.