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  You get a debit card with the money market savings account while funds in the savings account can only be withdrawn via electronic or wire transfers.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.


ING Orange Savings Account Offering Easy $25 Bonus

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ING Direct of offering a $25 cash bonus when you open an Orange Savings Account.

ING Direct of offering a $25 cash bonus when you open an Orange Savings Account. The best part of the deal is that it doesn't require you to jump through hoops to get the deal.  Just open a new account, fund it with a minimum of $1, and the $25 will be deposited into your account. The only restriction is that you cannot withdraw the bonus for 30 days.  The bonus at $25 is a bit skimpy compared to other bank cash bonuses, but at the same time it's for a savings account and doesn't come with restrictions or requirements.

Unfortunately, the rate on an ING Orange Savings Account is nothing to write home about. They are currently offering 1.50% APY, which is well below the best savings and money market rate on the BestCashCow rate tables (the top rate is currently 2.32% APY). 

Credit for this find goes to BankDeals.


FDIC $250,000 Insurance Limit Extended to 2013

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Last week, President Obama signed a law that includes provisions that extend the $250,000 FDIC & NCUA deposit insurance limit to December 31, 2013.

Last year, FDIC and MCUA deposit insurance was temporarily increased from $100,000 to $250,000 until the end of 2008.  The Helping Families Save Their Homes Act of 2009 (S. 896), signed by President Obama last week, includes a provision that extends the FDIC and NCUA deposit insurance limit off $250,000 until December 31, 2013.

The bulk of the bill deals with mortgages and foreclosures, so the extention was not widely covered in the media.


Tennessee Commerce Bank 2.30% APY Savings Account

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Tennessee Commerce Bank is offering a competitive savings account paying 2.30% APY. It's also offering a some top cd rates.

Tennessee Commerce Bank is offering a competitive savings account paying 2.30% APY as of 6/5/2009.  That puts it near the top of the best savings and money market rates on the BestCashCow rate table.  It's also offering a some top cd rates.  As of 6/5/2009:

  • 2.40% APY 12 months
  • 2.45% APY 18 months
  • 2.87% APY 24 months
  • 3.27% APY 36 months
  • 3.45% APY 48 months
  • 3.65% APY 60 months

 

Opening and Funding

To open the savings account or a certificate of deposit, you'll need to download an application form, fill it out and mail it back with two pieces of identification.  To fund the account, you can send a check with your application, use ACH, or use a wire transfer.

Some key things to know about the account include:

  • The account is available nationally
  • There is a $250 minimum opening deposit and balance to avoid a $2.50 monthly fee
  • Trust accounts and POD accounts available
  • $2.50 charge for more than one withdrawal per month. 

Safety and Soundness

Based on FDIC data from March 31, 2009, Tennessee Commerce Bank has$1.266 billion in assets and $1.108 billion in deposits. Bauer Financial gives it 3.5 out of 5 stars (Good) for its safety and soundness.  The bank is FDIC insured.

Credit for this find goes to BankDeals.

Please share any experience you've had with Tennessee Commerce Bank.


Everbank Raises Promo Rate to 3.01% APY

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Everbank raised the promo rate on its yield pledge money market account from 2.55% to 3.01%. This reverses the trend of six months of rate cuts and may be another sign that we are reaching the bottom in savings and money market rates.

Everbank raised the promo rate on its yield pledge money market account from 2.55% to 3.01%.  This reverses six months of rate cuts and may be another sign that we are reaching the bottom in savings and money market rates.

Everbank's 1 year APY has increased from 1.87% to 2%.  What we've always found interesting about Everbank's offer is that the three month promo is a guaranteed rate for three months.  That means, in essence you get an account equivalent to a  3-month CD that is paying 3.01% APY and that is totally liquid.  The best 3-month CD rate according go the BestCashCow rate tables is 1.70% APY.

At times like this, when rates seem to have bottomed and are increasing on the longer-term CDs, parking money for a short-term in a higher yielding account like Everbank may make a lot of sense.

Everbank has always had a competitive promo rate.  Starting last fall it began to drop, along with savings and money market rates in general.  This increase reverses the trend of six months of rate cuts and may be another indicator, along with a leveling of the decline we've seen, that savings and money market rates have bottomed and will start trending up.


How GM Bankruptcy Filing Impacts GMAC and Ally Bank

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GMAC today issued a statement commenting on the filing of its once parent corporation General Motors.  The statement shows that while the financing company does have exposure to GM, bankruptcy will hopefully minimize the losses. 

Ally Bank, a bank that has been in the news quite a bit over the last week due to its high rates on savings and certificates of deposit is a subsidiary of GMAC.  Ally Bank was formerly known as GMAC Direct.

The statement on the GMAC site says:

DETROIT (June 1, 2009) -- GMAC Financial Services is a creditor of General Motors Corp. (GM) and as such is taking the appropriate steps to protect GMAC's interests during GM's restructuring.

GM has submitted a motion to the U.S. Bankruptcy Court that, pending approval, would allow its direct business with GMAC to continue in the ordinary course during GM's restructuring. In addition, GMAC has been advised by GM that GM will take appropriate steps in the bankruptcy court to authorize a purchaser of the assets to comply with all of the contracts with GMAC, including all payment obligations.

GMAC continues to provide automotive financing products and services to GM and Chrysler dealers and customers, including retail auto originations, wholesale financing, insurance products, and servicing of customer loans. The company's non-automotive activities also continue uninterrupted.

GMAC is a bank holding company with a newly appointed board of directors and a diversified ownership structure. GMAC has not filed for bankruptcy, nor does it intend to, and the company continues to meet all of its obligations.

The wording of this couldn't be more ambigious business-speak.  GMAC is a creditor to GM, meaning that it does have exposure. I'm guessing that the majority of the exposure comes from loans to dealers to purchase cars from the automaker (wholesale financing).  At the same time, the statement implies that the bankruptcy filing will ensure that GMAC is made whole for these transactions and will keep the financing relationship in place : "In addition, GMAC has been advised by GM that GM will take appropriate steps in the bankruptcy court to authorize a purchaser of the assets to comply with all of the contracts with GMAC, including all payment obligations."

So, for depositors of Ally Bank, this looks like a non-event for now. GMAC Finance issued a statement earlier today on an unrelated matter stating that the company was financially sound and had aqequate capital. 

I've contacted GMAC and will post any further information that I receive.