Dedicated to Deposits: Deals, Data, and Discussion

6.00% 3-Month Money Market Account Promo Update at Dime

POSTED ON BY

[Update 3/18/07: The 6.00% special rate is no longer being offered.]

Dime Savings Bank is still offering the 6.00% APY 3-month promo on its Rewards Money Market account. I had reported on this back in July. Here's the new promo link. An animated banner on the bank's front page advertises this deal and has a link to this promo page. Note, the banner only shows up with IE and not Firefox.

The offer seems the same as what I reported in July. Here are some of the important details: The 6% APY is guaranteed for a 3-month period from the date of account opening. It applies to daily balances up to $250K for 3 full months. After the 3-months is over, the account will become a regular Rewards Money Market tiered rate account (2.50% for balances of $1K to $25K). Offer is limited to one account per household and is for new deposits only.

When I had contacted Dime Bank in July, I was told that you can close the account after 3 months without penalty. According to the customer service rep, they only do a ChexSystem check and no hard credit pull during the application.

Dime Savings has an online banking system but it doesn't have an ACH transfer system. The money market account does have check writing. Someone posted on this FW thread that if you want to link to this account from another institute, be sure to categorize this account as an "MMA Checking" account or at least a checking account, or Dime will reject the ACH transfer request.

Also note that Dime has been offering a 7% version of this promo to select customers (see this FW thread). Unfortunately, this one looks like it requires a customer unique code.

The Dime Savings Bank is FDIC insured and is based in Brooklyn, New York. It has over $3 billion in total assets. It's rated 4 out of 5 stars by Bankrate.com (sound).

Thanks to jairocon who updated me on this promo.

Comments
9 comments.
Comment #1 by Anonymous posted on
Anonymous
'It applies to daily balances up to $250K for 3 full months.'

Am I missing something here? Over $100K won't be insured, so if the bank goes south, so does your money over $100K...

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Comment #2 by Anonymous posted on
Anonymous
A joint account with two owners would be insured up to $200k, a joint account with three owners would be insured up to $300k, assuming none of the owners had any other joint accounts at the same bank. (If they has other joint accounts at the same bank, their insurance would be spread among the accounts.)

Similarly a POD account with three eligible relatives named as beneficiaries could be insured up to $300k (assuming you haven't named the same beneficiaries on another account at the same bank).

And Dime has been around since 1864. How likely do you really think that they are going to go completely bust tomorrow morning?

And in any case, uninsured depositors have a claim on what is left after the assets of the bank are liquidated. Seldom does the value of a bank's assets fall to zero overnight. You might not get it all back, but you are unlikely to completely lose all of your uninsured deposit.

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Comment #3 by Anonymous posted on
Anonymous
A joint account between husband and wife naming their two children as beneficiaries could be insured up to $400k, assuming that each the children were the children of both of the owners and neither owner had any other accounts naming either of the children as beneficiaries at the same bank.

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Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the FDIC information. For more info and FDIC links on insurance above $100K, please refer to my FDIC resource post.

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Comment #5 by gail (anonymous) posted on
gail
I've spoken with CS a couple of times now. They will not allow pod accounts. So, your only choice, is going with a joint account. CS said that means just 2 parties. They call this a mma, but when it comes to having beneficiaries, they keep referring to this as a checking account. That's what has kept me from opening this, for awhile now, because I wanted a pod for 2 beneficiaries.

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Comment #6 by jairocon (anonymous) posted on
jairocon
It seems that Dime has dropped the promotion - it is 4.5% now.

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Comment #7 by Anonymous posted on
Anonymous
Yeah, this promo is history. Time to delete it, BankingGuy....

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Comment #8 by Banking Guy (anonymous) posted on
Banking Guy
Thanks. I've made the note that it has ended, and I've deleted it from my weekly summary.

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Comment #9 by Banking Guy (anonymous) posted on
Banking Guy
Update 5/21/07

A reader mentioned that this promo has returned. I called and verified this is true. However, I was told that you have to mail in the promotional letter.

So it appears it's only available to those sent this promotional letter.

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