New UmbrellaBank Rates: 5.25% 12-Month CD

UmbrellaBank raised their rates on the money market account and all CD terms today. The highest rate is the 2-year CD with an APY of 5.30%. The money market account yield increased from 4.66% to 4.70% APY. Below is the full list of old and new CD yields:

Term    Old APY   New APY    Increase
3 Month   4.80%     4.85%      +0.05%
6 Month   4.95%     5.05%      +0.10%
1 Year    5.15%     5.25%      +0.10%
1.5 Year  5.16%     5.28%      +0.12%
2 Year    5.10%     5.30%      +0.20%
2.5 Year  5.00%     5.20%      +0.20%
3 Year    5.00%     5.20%      +0.20%
4 Year    5.00%     5.20%      +0.20%
5 Year    5.00%     5.20%      +0.20%

UmbrellaBank's last rate change was two weeks ago.

UmbrellaBank's current financial rating at Bankrate.com is only 1 out of 5 stars (weak). In February the rating had been 2 stars (below industry average). They are FDIC insured, so if you keep below the FDIC limits, you shouldn't have a problem (see my FDIC post).

UmbrellaBank and GMAC Bank have been going back and forth in terms of CD and money market rates over the last several months. I still think GMAC Bank is a better deal due to a smaller minimum ($500 vs. $1K) and GMAC's strong bank-to-bank ACH transfer system which UmbrellaBank completely lacks (see post).