5% Money Market Account at interState Net Bank ($10K+)

interState Net Bank has increased the rate on their money market account from 4% to 5% APY for balances over $10K. The APY for balances between $10K and $5K is 3.30%. Under $5K, the rates go way down to below 1.50%. There's a $10 monthly fee and a $3 internet access fee if the average balance falls below $2.5K. The account closing fee is $20 if closed within 180 days of first deposit. The first 200 checks are free.

My last post on this bank was back in November 16, 2005. That money market account was at 4% APY back then which was a competitive rate (both HSBC and EmigrantDirect were at 4%). The APY was still at 4% as of April 28th based on Google's cache. So based on history, my guess is that this rate will remain at 5% for the rest of this year. It should remain very competitive for the next few months. Later this year, it may start lagging if interest rates continue to rise.

As I had observed from my last post on this bank, they do seem to offer ACH transfer capabilities. The bank still has a low 2 out of 5 star rating at Bankrate.com which is below the industry average.