Dedicated to Deposits: Deals, Data, and Discussion

iGObanking.com Update - 4.30% 15-Month CD, 3.80% Checking Account, $50 Bonus

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iGObanking
iGObanking.com continues to offer several great deposit deals. These include a 3.80% APY online checking account, a 4.15% APY 9-month CD and a 4.30% APY 15-month CD. Plus, there's a $50 gas card offer for the checking. I have more details about the checking account and bonus in last Friday's post. Refer to this post for more details on the online CDs.

A commenter noted an important point in last week's post. New money is required for the 9 and 15 month CDs and the iGOchecking account. So make sure you keep that in mind if you already have iGObanking's savings account.

Update 11/22/08: Readers have reminded me of an important detail in the small print related to this checking account bonus. It states that "reward will be sent to the first 400 accounts that fulfill the bill pay requirements." Readers have reported being told by the bank's online management team there have been over 8000 applications received in November alone.

iGObanking.com is a division of Flushing Savings Bank, FSB (FDIC insured). For those looking for a strong bank, Flushing Savings seems to be in better shape than most. The parent company's stock price is still over $10 a share, and they have continued to report profits. It also has solid financial ratings for soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/08 data.
  Tags: iGObanking, CD rates, IRA rates, checking account

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Comments
22 comments.
Comment #1 by Anonymous posted on
Anonymous
iGObanking.com with checking for those with a local branch seems to be the ideal banking product.

3.80%, stable, extremely high rate. No risk of default as Flushing Savings is very stable.

Concern is how long the 3.80% rate tier will last.

Also checking resume information of the NEW CIO, I see he was a bigshot at AIG insurance and also worked for other banking institutions. He worked on numerous projects with multiple firms. Remember bankers arent creating banks to suit the depositor, they want to make money from your funds with leverage.

Ironically after I viewed his resume on my computer, it is no longer on the internet for viewing. Coincidence or not I dont know.

But at any rate: I want a long term banking relationship whereby me and the banker are both benefitted and we both see success.

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Comment #2 by Anonymous posted on
Anonymous
IGoBanking does seem to have good rate tiers but banks are bad financial bets. 3.80%, and 4.30% are nothing and dont even beat inflation.

I want higher returns but the market is really bad now and I cant find any other stable investments out there. Its like Im caught in a box with nowhere to go but financially downhill every day that passes.

One still needs a personal checking account so this account is still good to pay bills with since it provides full services including an ATM card to withdraw funds for. Overall a decent product and fills a definite niche for consumers.

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Comment #3 by Jim (anonymous) posted on
Jim
Hehe, October CPI was -1%, so 4% beats inflation (or deflation). If course, the annualized inflation rate is still positive.

Yes yes, I also know the gov't stats are highly questionable and the deflation is temporary considering the 1414% annualized increase in monetary base.

My question:
How does igobanking determine "new" money? If you ACH it out of your igosavings and put it in another bank for a week and then open a CD linked to the other bank with that same money, is that "new"?

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Comment #4 by Anonymous posted on
Anonymous
To Jim, at 10:29 AM, November 21, 2008.

I just spoke to a CSR and she said that they monitor the outflow and inflow of money for that statement period of same ss#.
If inflow is bigger than the outflow the difference is new money, otherwise it is considered old money and you may not qualify for the special rates.

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Comment #5 by Anonymous posted on
Anonymous
The above finding is correct.
I was told the same thing and they define a statement period as previous 30 days and the next 30 days.

Therefore, you can not just send the existing money out and few days or week or to later bring them back in. That will not work.

1
Comment #6 by Anonymous posted on
Anonymous
Don't count on the $50 gas card offer for the checking.

As of today they have over 8000 applications in the system. Only the first 400 will receive the bonus.

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Comment #7 by Anonymous posted on
Anonymous
Does anyone know this bank's policy re: overseas-based US person buying CDs. I've found that banks, BofA in particular, but also many others, do not want my business as I live overseas.

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Comment #8 by Anonymous posted on
Anonymous
Deposited funds on 11/17, now it is 11/22 and funds dont show in available balance yet.

I was under impression that funds deposited on Monday would be in by Friday.

So I am assuming funds will be available a full Monday later?

This is a very long fund hold period for 3.80% which means this account is breakeven for 30 days over existing lower rate accounts if rate holds up for 30 days.

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Comment #9 by Anonymous posted on
Anonymous
does any one know this is a hard or soft inquiry?

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Comment #10 by Anonymous posted on
Anonymous
Their ACH takes 3-5 days to pull the money in and then they put 5 days hold on the money. So, technically 2 weeks will pass in order to use your money.
They did hard credit pull at equifax on me. According to CSR, they do soft and hard pulls depending on the credit report info and the application. If there is a mismatch on any field or low credit score or any kind of freeze or you have moved recently, they do a follow up with hard pulls with an additional credit report.

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Comment #11 by Anonymous posted on
Anonymous
To 1:25 PM, November 21, 2008.

You must have USA address and or physical presence in order to open an account.

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Comment #12 by Anonymous posted on
Anonymous
"Their ACH takes 3-5 days to pull the money in and then they put 5 days hold on the money. So, technically 2 weeks will pass in order to use your money."

I assume interest starts after the ACH transfer is completed? If not and there is a 2 week loss, then Im sorry I opened this account to begin with. I thought 5 day hold meant 5 days, not 2 weeks.

Looks like I will not be adding new money to this account any further if this is the case. Seems like this account really doesn't add up.

At least I can billpay all the funds to zero out the account when the funds finally come due even if there are ACH restrictions or use a combination of both systems.

Now I see why people stopped using this bank.

1
Comment #13 by Anonymous posted on
Anonymous
Don't count on the $50 gas card offer for the checking.

It was a teaser promo and I didn't apply for it either and I wasn't expecting it.

The 10 day hold on funds is not what I was expecting from a reputable bank.

:-(

1
Comment #14 by Anonymous posted on
Anonymous
Actually Countrywide has next day transfers and has a 5 day hold period on funds of which interest accrues during this time.

So to get the higher rates like 3.80% a 5 day hold period is not to be unexpected.

Just as long as interest accrues during this period after the ACH hold time. If theres a full loss from ACH and the 5 day hold period, then this 3.80% actually turns into a really bad deal financially speaking if rate is then subsequently dropped sharply. If the rate holds up for a month, then there is a slight loss over keeping funds in an account without moving it where one is like 2.90% APY offering at the time.

In other words with switching accounts like I did, I prolly will wind up with a net loss over not moving it in the first place unless 3.80% holds up for over a month and in that case it could be breakeven or a slight net loss.

1
Comment #15 by Anonymous posted on
Anonymous
Good news from igobanking:

All deposits made to your iGO account are held for three (3) business
days before they become available for withdrawal. Four hundred dollars
($400.00) is available on the morning of the third business day; the
remainder is available at the close of business the same day. Saturdays,
Sundays and legal holidays are not considered business days. All
deposits begin accruing interest from the day of deposit.

1
Comment #16 by Anonymous posted on
Anonymous
To poster at 1:07 PM, November 22, 2008.

Those are technical mumbo jumbo.
The day the money arrives is not considered part of the holding period. The $400 dollars available on the 3rd day is actually the forth day.
After closing of business day is actually the next day which is the fifth day.
And if any available day is weekend, it goes into the next week and will become additional hold period.

You must have some affiliates with iGobanking for posting untrue statements.

P.S. and this is only after a wait of additional 3-5 business days for the ACH to pull the money in.
I had an account and I closed it because of the unacceptable wait period.

1
Comment #17 by Anonymous posted on
Anonymous
Posting wasn't false info. It was an exact cut and paste of email I sent to customer service at iGOBanking and they are on the record for saying so:

The email exchange is as follows:

Dear Valued Customer,

All deposits made to your iGO account are held for three (3) business
days before they become available for withdrawal. Four hundred dollars
($400.00) is available on the morning of the third business day; the
remainder is available at the close of business the same day. Saturdays,
Sundays and legal holidays are not considered business days. All
deposits begin accruing interest from the day of deposit.

We do not offer telephone banking. You will be able to access your
account online using the separate custom-assigned PIN mailed to you at
the time the account was opened

If you have any questions please contact us at the number provided
below. Our representatives are available to assist you Monday-Friday
9am-5pm and Saturday 9am-3pm ET.

Thank you for choosing iGObanking.

Regards,

Jean Tatarian
Internet Banking Specialist
42-11 Bell Blvd
Bayside, NY 11361
Tel 888-432-5890
Fax 718-224-5829
customerservice@igobanking.com
igobanking.com - Real Simple. Real Smart.

I have a few questions: How long does it take for funds to become
available once ACH transfer has been completed? Does interest accrue
during the 5 day hold period?

Non relevant part pertaining to other questions and my identity info have been deleted.

1
Comment #18 by Anonymous posted on
Anonymous
Relevant portions:

"All
deposits begin accruing interest from the day of deposit." Deposit is the day in the register when it says Deposit. So you are not losing interest during ACH or hold periods. Deposit is when the online register says Deposit. So I am getting full 3.80% on this money.

I specifically asked about AFTER ACH transfer. She responded a 3 day business day hold. ACH transfer times all depend on the individual banks. In my case it was posted to the account after 3 days. Which means that next week I will have my funds available and at the end of the month I should receive interest from date of deposit.

And Im willing to bet this is what will happen because this is what iGOBanking has stated and they have been honest with all the questions and directly upfront with me.

This is for the iGOChecking account. Experiences with iGOSavings could have different terms and conditions on the account. All my questions were asked in regards to the iGOChecking account just to point that out.

So far it seems as though alot of information has been posted on here which seems contradictory to what iGOBanking has stated via emails.

1
Comment #19 by Anonymous posted on
Anonymous
From how it looks with iGOChecking: If you can wait approx 2 weeks for your money, think of it like a 2 week CD to get the 3.80%.

Higher rate with a slightly longer waiting period for funds.

11-17-2008 DEPOSIT (iGObanking said interest accrues from this date)
11-20-2008 IGOBANKING ACCT FUND
and the answer to me was after the 3rd business day which means funds will be available at the end of the day on 11/25/08.

This is what I didn't know and it was confusing at first but iGOBanking gave me all the info.

So far so good, and the wait for funds doesn't bother me at all since new money can be constantly deposited and I can fund checks immediately when funds are available or use the ATM card to get funds out.

If one needs immediate funds then obviously this isn"t the bank for them

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Comment #20 by Anonymous posted on
Anonymous
Will see at the end of the month how the account works out. I doubt Flushing will want to lose a long term banking relationship with me so I expect good things from this emerging institution which is fighting hard to get deposits.

My guess is next week everything will be all and well.

1
Comment #21 by Anonymous posted on
Anonymous
8:37 AM, November 23, 2008 posting is off the mark and was incorrect.

Got my 1st $400 of funds available on 11/25/08. Deposit made 11/17/2008, ACH transfer completed on 11/20/2008. After close of business day my entire funds will be available as they said on 11/25/2008.

Interest accrued the whole time since date of Deposit according to iGOBanking.

The tradeoff was 3.80% APY (I think its 3.72 or 3.73% APR) and a total of 7-8 business days to get my funds deposited.

I will say this: iGOBanking's Cash Edge ACH system has very low limits internally for next day transfers. However there is no fee to use another service's ACH. So if you want to pull funds from iGOBanking you would use another banks ACH service to pull the entire amount should yield dip.

Countrywide's ACH system has very high limits and next day transfers which can be used with iGOBanking. So I can transfer back to Countrywide for next day transfers any time without the low restrictive limits.

If high yield holds up this bank is very very good, and has true flexibility since I can use my own Cash Edge service from a receiving bank.

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Comment #22 by Anonymous posted on
Anonymous
There is no scam or lost interest due to hold periods on this account.

Just remember: If you want the account the tradeoff is if you deposit funds on a Monday you will get them the following week in total when you use the system Wednesday morning or Tuesday evening (I am guessing after the business day is over the funds will show up but it will definitely be showing available on Wednesday)

Plus you get a debit card with the account as well if you request it.

This bank kept all their committments to me and a three day hold and ach transfer delays are not out of the ordinary. Countrywide Bank was doing a similar deal. It had 1 day transfers but a 5 day hold period. When I signed up it had a 10 day hold period which was reduced to 5 days.

So all is normal here. Once funds are available and you put in new money you can continue to pay bills or even put in more funds which will accrue at the higher rate.

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