New High Rates at UmbrellaBank, 5.10% Money Market

UmbrellaBank made some significant rate hikes to its money market account and short term CDs. The Pot O'Gold Money Market Account yield increased from 4.85% to 5.10% APY. The 3-month CD had the largest rate hike with an increase from 5.10% to 5.35% APY. Below is the full list of old and new certificate of deposit yields:

Term    Old APY   New APY    Increase
3 Month   5.10%    5.35%      +0.25
6 Month   5.45%    5.57%      +0.12
9 Month   5.50%    5.60%      +0.10
1 Year    5.55%    5.67%      +0.12
1.5 Year  5.50%    5.50%    
2 Year    5.45%    5.45%    
2.5 Year  5.45%    5.45%    
3 Year    5.45%    5.45%    
4 Year    5.45%    5.45%    
5 Year    5.45%    5.45%    

It has been two weeks since UmbrellaBank's last rate increase.

The yield curve continues to become more inverted. Now Umbrella's 5-year CD only has an APY 0.10% higher than the 3-month CD. The APY of the 1-year is 0.22 higher than the 5-year CD APY.

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. However, GMAC Bank's money market account rates have started to lag slightly. We'll see if GMAC's money market will finally break 5% later this week.