New Higher Rates at UmbrellaBank

UmbrellaBank increased rates on the money market account and all CD terms today. The highest rate is the 1-year CD with an APY of 5.55%. The largest rate increase was in the 6-month term which went from 5.20% to 5.45% APY. Umbrella's Pot O'Gold Money Market Account yield increased from 4.75% to 4.85% APY. Below is the full list of old and new CD yields:

Term    Old APY   New APY    Increase
3 Month   5.00%     5.10%    +0.10
6 Month   5.20%     5.45%    +0.25
9 Month             5.50%
1 Year    5.35%     5.55%    +0.20
1.5 Year  5.35%     5.50%    +0.15
2 Year    5.35%     5.45%    +0.10
2.5 Year  5.30%     5.45%    +0.15
3 Year    5.25%     5.45%    +0.20
4 Year    5.25%     5.45%    +0.20
5 Year    5.25%     5.45%    +0.20

UmbrellaBank has started advertising new CD terms including a 9-month CD and a 30-day and 60-day CD. The 30-day and 60-day APY is 4.75% and 4.80% which is lower than the money market rate so I'm not sure why this would be attractive for anyone.

It has been about 6 weeks since UmbrellaBank's last rate change.

UmbrellaBank's parent New South Federal Savings Bank continues to have a low 1 out of 5 star rating at Bankrate.com (weak). If you open accounts, you might want to keep deposits under the FDIC limits (New South's FDIC info).

I still prefer GMAC Bank over Umbrellabank due to GMAC's strong bank-to-bank ACH transfer system. UmbrellaBank still lacks such a system. GMAC Bank usually does rate updates on Fridays. Perhaps GMAC will match these rates.