Bank of America is offering a Special Rate Savings Account that pays 1.5% APY, guaranteed until April 1, 2009. The money is totally liquid and can be withdrawn at any time via the branch, ATM, check, or online. You can also add money to the savings account up until the April 1 deadline.
According to the BestCashCow rate tables, this is moderately competitive compared to the other top savings rates. Still, the guaranteed rate makes this attractive and the 1.5% APR looks pretty good when compared to the best 3-month cd rates and 6-month cd rates. In essence, you are getting a liquid CD that pays near the top of the short-term CD rate ranges.
The "special rate" is available online only for new or existing Bank of America checking account customers who open a new Special Rate Money Market Savings account with a minimum of $10,000. Special 1.50% rate applies only to balances between $10,000 and $250,000 from November 7, 2009 to April 1, 2010. The APY for balances under $10,000 is 0.90% as of 11/06/09. The APY for amounts $250,000 and over is 1.15% as of 11/06/09.
After April 1, the Special Rate Money Market Savings account automatically converts to a Growth Money Market Savings. As of today, November 17, the Growth Money Market Savings Account was offering a .95% APY on balances over $25,000. A bonus APY of 1.20% APY applies if a credit is received into the Growth Money Market each month via one of these three ways:
- An automatic transfer of $250 or more from your Bank of America checking account
- An automatic transfer of the monthly interest payment from your Bank of America CD
- A direct deposit of $250 or more.
The account has a tiered rate system so there are lower minimum balances but the APY is also lower. 1.2% isn't bad but it's starting to get low for a BestCashCow covered account. I think once the Special Rate expires savers should compare all of their options.
The account can only be opened online.
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