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News and Updates for Redneck Bank and Its Two Sister Banks

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For those who have wondered about the history of Redneck Bank, this Oklahoman news article provides the details. RedneckBank.com and its sister sites, Evantage.com and AmericaNet.com, are internet divisions of three Oklahoma banks which are all owned by the Huckabay family. The article has an interview with Wade Huckabay who describes how the name Redneck Bank evolved:
The Internet bidness, er, bank is an arm of Snyder-based Bank of the Wichitas, and the brainchild of Wade Huckabay whose family owns three Oklahoma banks. The Redneck Bank name was an attempt to differentiate its Web site from thousands of online banking operations, Huckabay said.

Apparently, the name is working. They are getting swamped with new customers.

The demand is bad news for savers. Yet again the large influx of deposits is forcing a change. Redneck Bank, AmericaNet and Evantage all reduced the balance cap on their reward checking accounts and money market accounts. The changes are shown below:
  • Reward Checking: 5.25% APY up to $10K; 2.25% over (cap had been $25K)
  • Mega Money Market: 3.10% APY up to $35K; 1.65% APY over (there had been no cap)

On the positive side, the rates are staying the same. But a $10K cap is low. You'll earn about $18 more a month by keeping $10K in the reward checking account rather than in the money market account. You'll have to decide if $18 more a month is worth the debit card usage hassles.

Other Reward Checking Accounts

There are still many other reward checking accounts. I have 349 reward checking accounts listed at my High Yield Checking website in all 50 states. In addition, I have 41 reward checking accounts listed in my nationwide reward checking list (I'll be updating these tables this weekend with these latest changes). Unfortunately, the interest rate environment is affecting all of these reward checking accounts. On the right column of the tables, I include the dates of when I last updated the information on the reward checking accounts. The most common change has been rate cuts.

Even though reward checking account rates have fallen, their rates continue to average well above online savings account rates. Each time I update the tables, I also update the reward checking statistics. Out of the 349 accounts, the average APY is 4.23%. This continues to fall, but it's still much higher than the average online savings account rate. Can this last? As I explain in this reward checking post, the debit card usage requirement and the balance cap are the two main features in my opinion that help the bank maintain the high rate. By the end of this year, we should know if these accounts can maintain this significant lead over the online savings accounts. For me, the reward checking rate has to be at least 1% higher than the rate of my online savings account for the extra work to be worthwhile. What's your threshold?

  Tags: AmericaNet Bank, Redneck Bank, Evantage Bank

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Comments
11 Comments.
Comment #1 by Anonymous posted on
Anonymous
I have 3 rewards checking accounts as follows:
Max 30000 @ 5.06
Max 50000 @ 4.51
Max 100000 @ 4.01
With rates as they are now 4.00 is as low as I will go before moving.
My Grand daughter is happy to help me out if I need help with my debit card usage.

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Comment #2 by Anonymous posted on
Anonymous
What bank are you using for $100,000 at 4% please?

1
Comment #3 by jonesnco (anonymous) posted on
jonesnco
I keep money in a local CU that pays 5.25% with a $50k cap. I end up using the debit card to make small purchases I would have made on my main checking (a large national bank) in the past. I used to stop at 20 or so debit transactions a month but I have been using the reward account all month lately and moving money to the reward account to cover the extra usage...it pushed up the usage to 40 or so a month.

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Comment #4 by Anonymous posted on
Anonymous
2.25% for any amount over $10k is not that bad for a true checking account with unlimited check writing and ATM withdrawals, especially when you blend in the 5.25% on the first $10k. And yes I started this thread as more of a joke, Had no Idea so many would jump on the deal. They can lower limits and rates but can never take our horsey cards away from us

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Comment #5 by Anonymous posted on
Anonymous
The 100000 dollars is at Valley Community Bank located in the Chicago suburbs. Banking Guy has it listed in his accounts under Illinois. It requires a branch visit but it is worth it if you live close enough or if you are in the area anytime as it only requires the one visit. I live about 50 miles from the nearest branch but the 100 mile round trip was well worth it. I don't like CD'S at any rate and sure as hell don't like them at 2.5 or 3 %.

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Comment #6 by Anonymous posted on
Anonymous
Bah. I just opened one of these and transferred in $25K. Maybe I'll park it in their money market for a bit while looking for better options.

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Comment #7 by Anonymous posted on
Anonymous
Just when I open an account (both MM and reward checking) they lower the limits severely. I am closing the accounts next week - if they want to spend all the admin money setting up an account and sending me debit cards just to have them closed then they will not last too long if people follow my lead. There are plenty of better deals out there

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Comment #8 by Anonymous posted on
Anonymous
I opened an account with Redneck and am less than pleased with their online customer service. I will not continue doing business with them. I've contacted them on several ocassions via chat, e-mail and phone and I am still trying to transfer funds out of the account.

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Comment #9 by Anonymous posted on
Anonymous
I'm feeling the same as the above comment. Opened accounts with both AmericaNet and Redneck Banks. It took three phone calls to pry loose my actual account number so I could register for online access. The online interface is about as clunky as it gets.

Unless things improve with the influx of new money, I can't see putting up with the lousy interface just for a few extra dollars in interest.

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Comment #10 by Anonymous posted on
Anonymous
Still trying to figure out how to transfer money in and out of this bank after two weeks. Registered my other accounts and confirmed the test deposits, but unable to actually transfer money.

On-line help is useless, and live help is never available when needed. Don't think I'll be staying with this institution much longer.

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Comment #11 by Anonymous posted on
Anonymous
After 3 weeks finally got an account number. I authorized the transfer of funds from current bank to open account. The debit posted to my current bank but no credit showed at Redneck. When I called Redneck (be prepared to spend a long time on hold) I was told it could take up to 5 days to post & interest would begin accrual on posted date. I was told the situation is the same when getting $ out of the bank - up to 5 days. They also set an unreasonable $1500 daily limit on bank to bank transfers.
I'm closing the account

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