Dedicated to Deposits: Deals, Data, and Discussion

5.50% Money Market Account Promotion at UmbrellaBank


Update 4/25/07: The promo page now states that the 5.50% APY is only guaranteed through 7/31/07. The date was originally 12/31/07. The post has been updated with this change. just launched a new promotion on its Pot O'Gold Money Market Account. When new customers open the account through this promotional page, you'll receive a 5.50% APY on all balances over $1,000. The rate is guaranteed through 7/31/07. Currently, there's no mention of this promotion at UmbrellaBank's home page. A reader left a comment about this promotion, and I called UmbrellaBank to confirmed it. It has just started so that's probably why it's not yet mentioned on the home page.

Some of the important details of the Pot O'Gold Money Market from the Pot O'Gold Summary page and from the promo page:
  • 5.50% APY for new customers on balances over $1,000 guaranteed until 7/31/07
  • 0.60% APY on balances below $1K and a $10/month fee when the daily balance falls below $1K
  • Offers check writing (up to 3/month) and the first book of checks are free
  • ATM card is available BUT they charge $1 per ATM transaction
  • $10 fee if you go past 6 withdrawals to another account per statement cycle

Some details I received from the customer service rep include:
  • No hard credit pull is done. They only do a ChexSystem verification and a soft pull
  • You can fund the account by check or by a free wire transfer
  • After the account is opened, you can link to your other bank accounts and make ACH electronic fund transfers (ETF).
  • Before ETFs are allowed, you must fill out a form and mail it in with a voided check. The External Transfer Enrollment Application is available here.
  • Each new ETF link requires an additional form and voided check.
  • ETF transfers take 3 to 5 days (customer experience is usually a better indicator of the real delay)
  • There are no fees for initiating ETF transfers
  • There are no limitations on the size of the ETF transfers
  • Only 3 ETF transfers allowed per month (This seems to contradict the website so I asked if this limit would apply if you didn't have any check or other non-ATM withdrawals, and the CSR said the 3-per-month limit would still apply).

Note, it's common for the information provided by a CSR to not always be 100% accurate, so be sure to check on your own. is the online banking division of New South Federal Savings Bank. You can find UmbrellaBank mentioned by the CEO in the 2005 annual profile (pdf). New South Federal is FDIC insured (FDIC certificate # 32276). It doesn't have a history of high ratings at Currently, it only has 2 out of 5 stars (below peer group). Last September it only had 1 out of 5 stars. However, on UmbrellaBank's home page, they're advertising their rating with BauerFinancial was 3.5 out of 5 stars (good) through all of 2006.

I had thought we would see some promotions from banks at the end of HSBC's promotion. GMAC Bank just did a major rate increase to 5.30% APY on its money market account on Friday (see post). Although GMAC Bank's money market rate isn't a promotional rate, there's no guarantee to when it may end. The last time GMAC's rate was 5.30% it lasted less than a month. One nice thing about a guarantee end date is that you won't be negatively surprised like we were with E-LOAN. E-LOAN launched it's savings account last September with a 5.50% APY. It dropped to 5.38% APY in just over 2 months and then dropped to 5.25% APY in about 6 weeks after that (see post). However, the bad thing about the promo is that you'll more likely find the standard rates after the promo to be disappointing. In the last several months, UmbrellaBank's money market account rates have lagged other money market account rates. Last September they went to a tier rate structure. Currently, for balances over $1K the yields range from 4.95% APY to 5.10% APY for balances over $50K.

Thanks to reader goldbrick who mentioned this promotion in the finding deals post.

  Tags: savings account

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