iGoBanking Launches New Money Market Savings Account

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iGOBanking has just launched a new money market savings account. I checked their website and it has the same rate as their traditional savings account.

iGOBanking has just launched a new money market savings account.  I checked their website and it has the same rate as their traditional savings account.  The main differences between this new account and their existing savings account are:

  • The money market has a $25,000 minimum balance versus a $0 minimum balance for the savings account.
  • The money market comes with an ATM card versus no card for the savings.

The rate quote on the email was 2.02% APY.  Today, their website is only showing a rate of 1.91% APY. Did the rate already drop by 11 basis points one day after sending out an email announcement? As a comparision, their savings account is also paying 1.91% APY.

So why launch a new account that pays the same as the old account but has a $25,000 minimum balance?  

The major difference between the two accounts is access.  You get a debit card with the money market savings account while funds in the savings account can only be withdrawn via electronic or wire transfers.  So, the money market has some of the advantages of a checking account. 

The CSR on the phone seemed a bit confused about how much access the account provided.  Apparantly, you will receive an ATM card with the account, not a debit card as is listed on the website.  She stated you can do six withdrawals from the account online each month but an unlimited number of ATM withdrawals.  Maybe that's true but I'd double check.  It's a new product and they seem a bit unsure about its withdrawal features.

If anyone has any additional insight about this account, please post it below.

While iGOBanking is known for competitive rates, reviews of its account opening process have been mixed.

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Comments

  • ktexas

    June 25, 2009

    Customers who want more access would probably be better off opening the iGOchecking account along with the iGOsavings account. The checking only pays 1%, but it doesn't seem to have any minimum balance requirements. Based on the disclosure, the money market account has a $15/mo fee for balances under $25K.

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