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Update On Zions Bank's Deseret Money Market Account - Update

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Zions Bank
Update 2/20/08: The current yield for the low tier is 3.87% APY. Please check the bank's website for the latest rates. Also, it has been reported that starting 4/7/08, the minimum balance to earn any interest will be $2,500 (up from $1,000).

Zions Bank is still offering the Deseret Money Market Account, and it still has a very competitive yield (5.30% APY for balances from $1K to $50K and 5.36% for balances over $50K). They have changed the webpage locations since my last post, and they're still not advertising it well. I called yesterday and was told it's still available and is listed on their website at deseret.zionsbank.com and at deseretfinancial.zionsbank.com.

The Deseret has several advantages over Zions' advertised Internet Money Market Account. First, the rates are much higher (Internet MMA's yield is only 4.97% for under $50K). Second, the Deseret offers check writing. From my call yesterday, there have been a few changes to the Deseret since my last post. Here are the latest details:
  • 5.36% APY for balances over $50k
  • 5.30% APY for balances between $1k and $50k
  • No monthly fees, but no interest for balances under $1k
  • Minimum opening deposit is $1k
  • Offers Check writing (first 10 checks are free)
  • Wire transfers cost $15 for outgoing, $10 for incoming
  • ATM card comes with it but no debit card
  • Very restrictive ACH service. $500/day limit in or out. Must mail in a form and have overdraft protection or credit card
  • Should be able to push/pull funds using another bank's ACH service
  • No hard credit inquiries
  • Not available to Utah residents

Zions' customer service is available 12 hours a day from Monday to Saturday. Several readers have been impressed with the customer service. It's a solid bank that has been FDIC insured since the FDIC program started in 1934. It has 152 branches in Utah and Idaho with over 2,500 employees. Bankrate.com rates the financial strength of Zions as 4 out of 5 stars (sound).

To see reviews of this account, please refer to the comments in my December 2006 Deseret post.

  Tags: Zions Bank, savings account

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Comments
5 Comments.
Comment #1 by Anonymous posted on
Anonymous
Banking Guy: On page C6 of the Business section of today's (5/11)L.A. Times, there is an ad by zionsdirect.com for "Live CD Auctions." The ad reads: "Introducing Auctions from Zions Direct. Bid on FDIC insured CDs during live online auctions held 24/7. Log on to an auction and start bidding today." In bold type at the top of the ad, they plug a past result of 5.537% on a 6-month CD. What is your take on this? Thanks and keep up the great work!

1
Comment #2 by Anonymous posted on
Anonymous
My experience using Zions Bank has been good over the past few years. I had the internet money market and then converted to the Deseret MM acct. Customer service has been knowledgble and prompt when dealing with over the phone.

1
Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
Thanks everyone for your comments.

About the Zions' CD Auctions, it appear to be brokered CDs, and the auctions seem to provide a way to get some higher yields. But the process seems a bit complex. I've looked a little into this. I'll have to investigate further.

If anybody has any experience with these Auction CDs, your comments are much appreciated.

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Comment #4 by John (anonymous) posted on
John
I also had a Internet MMA that I later converted to a Deseret account. Likewise have had good experience with Zions thus far. One note regarding their transfer limits: despite their stated limit, they also have told me a customer can call them in advance if you want to move larger amounts, and they will permit that upon advance request.

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Comment #5 by Rainman (anonymous) posted on
Rainman
As of 08-29-2007, the APY is now 5.56% for balances above $50,000. Zions Bank credit seems to be well rated for short term debt by Fitch, S&P and Moody's. See http://www.zionsbancorporation.com/ and click on Credit Ratings.

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