Dedicated to Deposits: Deals, Data, and Discussion

Money Market Account with a Blended 4.07% Rate Guaranteed to 9/30/08 at a TN Bank (First National)


First National Bank is advertsing a promotion on its Prestige Gold Money Market Account. A blended yield of 4.07% APY for balances between $50,000 and $100,000 is guaranteed until 9/30/2008. A yield of 3.30% APY applies to all balances below and above this amount. The blended yield means that you receive 3.30% APY on the first $50,000, and 4.07% APY on balances from $50,000 to $100,000. The minimum deposit is $10,000. There's a $15/month service charge if the account balance falls below $10,000. This special doesn't seem to be listed at the bank's website. It was advertised in today's Knoxville News Sentinel. The ad is available online here.

It appears to require a branch visit to open the account. The ad lists two of the bank's branches (Dixie Lee Junction, 865-988-2230 and 10514 Kingston Pike, 865-988-2210). Other branches are located in the Tennessee cities of Lenoir City, Loudon, Maryville and Cleveland. If you live near one of these other branches, I would recommend calling to see if they'll honor this ad. The bank has been FDIC insured since 1934 (FDIC Certificate # 4947).

[Update: Added correction/clarification on the blended rate feature.]

  Tags: Tennessee

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Comment #1 by Anonymous posted on
I called them 10:28 AM today - this is not really a 4.07% rate according to the CSR. It is a “blended” rate. Say you put in $90K. You earn 3.3% on the first $50K of that, and 4.07% only on the last $40K. In my view this makes this both confusing and noncompetitive. Also, the CSR was almost certain it required a branch visit.

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. The bank's ad is misleading in my opinion since the small print doesn't describe this blending. I've updated the post with this info.