as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
bank of the sierra: are they legit? how can the checking interest apy be so high?
user
i believe mrchrister's answer is correct:  since they're fdic insured, they are "legit."  second, on the seemingly too-good-to-be-true rate: they're basically making up the difference on other fees (not necessarily paid by you) in order to offer you the higher-than-market rate. i'd like to point out two things not mentioned about the current rate offer, though: the high 4.09% apy advertised is only on balances up to $25,000; anything over that threshold is at a lower 1.01% apy. the offer also states in the footnotes: "rates may change after the account is opened." you might want to see if they have a good history of paying higher than average interest rates. you wouldn't want to switch only to find out the promotional rate was a teaser that soon gets reduced.
assistant