Dedicated to Deposits: Deals, Data, and Discussion

Update on UmbrellaBank's 6% Savings Account Promo

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[Update 8/29/07: The 6% promo has ended. Please see this post for more info.]

As I first reported yesterday, UmbrellaBank has started a new promotion on its Green Day Savings Account with a introductory yield of 6.00% APY for the first 90 days (5.83% interest rate). A minimum balance of $100 is required to avoid a $7/month fee.

I called UmbrellaBank yesterday afternoon, and received some additional info. I was told there's no closing fee if closed after 90 days. Note, you will forfeit interest if you close it before interest is credited to your account (it's credited monthly).

The CSR said that there's no hard credit inquiry. They just do a soft pull and a ChexSystem check. This corresponds to what I was told in April by another CSR. Update: A reader has reported that a hard credit pull via TransUnion was done.

They do allow payable-on-death (POD) beneficiaries to be listed. I was told you can list up to 3 in the online application and an additional 2 on the signature card for a total of 5 POD beneficiaries. If you're looking to use PODs to go above the $100K FDIC insurance limit, please check with UmbrellaBank and the FDIC to confirm. Also, this Investopedia page has a good summary of POD requirements that allow $100K insurance for each beneficiary.

It looks like UmbrellaBank has learned from that April promo when they changed the 5.50% guarantee from December to July. Several readers reported initially being told by banking reps that UmbrellaBank had to have received the funds before the change for them to get locked into the longer rate guarantee.

This time, I was told that if you apply while the 90 day rate guarantee is still showing on the website, you'll receive the guarantee even if it changes the next day. You don't have to worry about when they receive your funds. Also, I was told the 90 days doesn't begin until they receive your funds. So for those who plan to send a check, this is good news.

For more details and discussion of this promotion and on UmbrellaBank, please see my UmbrellaBank 6% savings account promo post.
  Tags: savings account

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Comments
9 comments.
Comment #1 by mk (anonymous) posted on
mk
I applied for the Umbrella Bank's promo for exiration until 12/31/07 but I am sure that the funds were received by them after they changed the language.

I believed that my rate would be applicable up to 12/31. Is anyone else here in the same boat? Have they lowered your rate? Thanks

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Comment #2 by Anonymous posted on
Anonymous
I am in the same boat, and my rate is still at 5.5%. I will have to see if the rate holds when my account cycles on Aug. 10

1
Comment #3 by Anonymous posted on
Anonymous
I'm now really confused by the post and then the comments. What's going on with the previous promotion and its problems? what's mk's and anon's problems?

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Comment #4 by mk (anonymous) posted on
mk
Thanks anonymous. I called Umbrella Bank CS and they confirmed that my APY of 5.5% was valid up to 12/31/07. The guy even gave me a confirmation number - for whatever it's worth.

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Comment #5 by mk (anonymous) posted on
mk
To really confused anonymous,

Please read the paragraph in Banking guy's post that starts with "It looks like UmbrellaBank has learned from that April promo ..."

It raised suspicion about the validity of UB's promotion if the funds were received after the expiration of promo aginst which the account was opened.

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Comment #6 by Anonymous posted on
Anonymous
BankingGuy, what was 'learned' by Umbrella bank from the April promo? Thanks

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Comment #7 by Anonymous posted on
Anonymous
THEY ARE DOING A HARD CREDIT CHECK THROUGH TRANS UNION. TRUST ME. I WAS DENIED.

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Comment #8 by Banking Guy (anonymous) posted on
Banking Guy
Sorry for the confusion over the old promo.

About the April 5.50% promo, UmbrellaBank initially was telling new applicants that the funds had to arrive before the change (based on readers' comments). However, I believe they ended up honoring those who had submitted the application before the change.

This time, the banking reps seem to be instructed of this policy so there should be no confusion when this promo ends.

About the hard credit pull, thanks for the info. CSRs often seem to be wrong about this issue. I've added your inputs in that paragraph.

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Comment #9 by Anonymous posted on
Anonymous
For those who already have this account with Umbrella, can you push money to this account from other banks? Does this push count towards the 3-per-month limit? Having to send a void check in order to add external links is inconvenient.

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