Dedicated to Deposits: Deals, Data, and Discussion

UmbrellaBank Raises Tiered Rates on Money Market Account

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UmbrellaBank created new rate tiers on its Pot O'Gold Money Market Account. Balances from $5K to $25K now earn 5.15% APY (up from 5.10% APY). The rates on higher balances also increased by about 5 basis points. The current rate is 5.20% APY for balances between $25K and $50K, and 5.25% APY for balances over $50K. The APY for balances between $1K and $5K remains at 5.10%. Balances below $1K only earn 0.60% APY and a $10 monthly fee is charged.

Unlike Amboy Direct or EmigrantDirect, UmbrellaBank's money market account offers limited check writing (first order of checks are free). For a check writing account, UmbrellaBank's money market account is one of best in terms of high rates and reasonably low minimums. The others to consider are GMAC Bank with a current APY of 5% and a $500 min or CapitalOne with a current APY of 4.80% and a $100 min. GMAC Bank has the advantage of an easy ACH bank-to-bank transfer system. UmbrellaBank still lacks this feature.

The trend of falling long term CD rates continues. UmbrellaBank's CD rates with terms over 3 months fell by 10 to 20 basis points. Below shows how the rates have changed:

Term Old APY New APY Increase
3 Month 5.35% 5.36% +0.01
6 Month 5.57% 5.45% -0.12
9 Month 5.60% 5.50% -0.10
1 Year 5.67% 5.50% -0.17
1.5 Year 5.50% 5.35% -0.15
2 Year 5.45% 5.30% -0.15
2.5 Year 5.45% 5.25% -0.20
3 Year 5.45% 5.25% -0.20
4 Year 5.45% 5.25% -0.20
5 Year 5.45% 5.25% -0.20

UmbrellaBank had done a good job at resisting lower CD rates. The old rates had held up for over two months since July 11th.

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).

Thanks to the commenter who mentioned the new rates in the finding deals post.


Comments
4 Comments.
Comment #1 by Anonymous posted on
Anonymous
Your mention of this bank's weakness is VERY much appreciated. Thank you. I was unaware. Your counsel re scrupulous attention to the FDIC limits simply could not be better. All would be wise indeed to heed it.

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Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks. For those who want more info on FDIC limits, you might find this post useful.

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Comment #3 by Anonymous posted on
Anonymous
I see that they have moved up to two stars on bankrate. The bank also has a link to their report on BauerFinancial... 3.5 stars.

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Comment #4 by goldbrick (anonymous) posted on
goldbrick
UmbrellaBank sent out a notice to some customers about adding an External Transfer system (bank-to-bank ACH). There is nothing on their site but a sign-up form on the customer service page. https://www.umbrellabank.com/self_service.php

Maybe they will make a wider announcement soon.

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