Over the past few years, online banks and credit unions started offering "Reward Checking" accounts with above market interest rates. Some rates are advertised above 6.00%! But, upon closer inspection, these accounts require significant maintenance - jumping through fiery hoops, even - to earn the high rate. Mess up, and you're back to a measily 0.10%. Here's what we found among some of offers out there:

If you take a look at Charter Bank's TurboChecking account, you'll notice an eye-popping 6.01% yield on balances up to $25,000. With All America Bank you get 5.25% APY and ATM charges refunded at the end of each month. (Many of these deals are only available to local customers of the banks and credit unions, but some are available nationwide.)

How can both these established and fly-by-night banks support such high interest rates when well paying money market funds top out at 4.00% and long-term CDs are at 5.00%? Well, several years ago bank marketing company BancVue came up with a new type of high interest earning checking. They pitched this new account to smaller community banks and credit unions as a way to differentiate themselves from national banks with more locations and online outfits with jacked-up rates.

Unfortunately, these "great" checking accounts come with significant hurdles. Customers generally must: make at least 10 signature debit card transactions (swipe not PIN), initiate one direct deposit or one ACH auto debit, access the account online at least once, pay bills online, and receive electronic statements. You might even be required to open another type of account or service with the bank. To add further uncertainty, the rates are variable and can change at any time.

If you really want to maximize such an account, you would pair it with a rewards credit card - or any credit card. Make 10 small purchases on your debit card and put everything else on a credit card and pay off the balance IN FULL every month. Then, you'd leave more money in the reward checking account for a longer period.

So, if you are tempted to try one of these accounts, FiLife has put together a few rules:

 

 

1. Use your debit card only for the required signature transactions (small amounts only).

 

 

2. Use a credit card for all other payments and pay bill IN FULL.

 

 

3. Make sure the reward checking rate is above the savings account rate.

 

 

4. Follow the other online and direct deposit requirements.

 

 

(A tip for keeping track of your transactions: My Money Blog suggests attaching a sticky note to your debit card with check boxes to insure you reach the requisite transactions per month.)

Want an easier, less-caveat filled option? Open a WaMu free checking account linked to an online savings account. Or an HSBC Direct savings account at 3.5%. No hoops to jump through and a more stable interest rate.