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Redneck Bank Stops Accepting New Applications

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I'm afraid it's another example of a high-yield account becoming overloaded. Redneck Bank has stopped accepting new applications. If you click on the open your account button at RedneckBank.com, it forwards you to a PDF document where they mention that they have temporarily stopped accepting new accounts because their phones are "goin' crazy." They've received a lot of publicity, not only from blogs and forums, but also from newspapers and Bankrate. Bankrate has been listing Redneck Bank's Mega Money Market Account for the last couple of weeks.

Redneck's sister banks, AmericaNet Bank and Evantage Bank, both still seem to be accepting new applications as of 4/08/09. The "open-your-account" links at those sites take you to the online applications where you can apply for both the Rewards Checking and the Mega Money Market. But we may soon be seeing changes from those banks. A reader just reported being told by an Evantage Bank CSR that they're cutting the reward checking rate starting 4/16/09. I'm trying to get details from the CSR to find out the new rate. Please leave a comment, if you've received any info on this.

Update 4/10/09: I just received the following email from an AmericaNet bank CSR:
Our Rewards checking rate will not be changing from the 5.25, and we have not had any talk of our rate changing

All three banks lowered the balance caps last month. For the reward checking account, the balance that qualifies for the 5.25% APY fell from $25K to $10K. For the Mega Money Market account, the account changed so that only the first $35K qualifies for the 3.10% APY.

As I described in this post, RedneckBank.com, Evantage.com and AmericaNet.com are internet divisions of three Oklahoma banks which are all owned by the Huckabay family. The three banks have separate FDIC charters, but they've been keeping these accounts very similar. So we'll have to see if this continues.

For details about these banks and accounts, please refer to the following posts:
Thanks to the readers who mentioned these account changes in the comments.

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation or to learn more about these accounts, please refer to my High Yield Checking website.

  Tags: Redneck Bank, Evantage Bank, Bank of the Wichitas

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Comments
6 Comments.
Comment #1 by Anonymous posted on
Anonymous
I just called Redneck Bank and I was told by the CSR that the stoppage of new accounts is only temporary. She told me that they need to catch up with all the new applications that they have and then they will open up their website again for new applications. Let's just hope that's true and the rates remain the same!

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Comment #2 by Anonymous posted on
Anonymous
My odyssey of opening an account at Redneck began 3/26. I worked through their archaic web site and authorized an opening deposit from another bank by ACH. When the deposit had not posted to the Redneck account I called them (plan on spending alot of time on hold) and was told it could take up to 5 days to post and interest starts accruing on posted date. They also restrict dollar amount of bank to bank transfers. I was told getting money out of the bank is like getting money into it. I might authorize a bank to bank transfer and they could take up to 5 days to fund. I'm closing the account.

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Comment #3 by Anonymous posted on
Anonymous
AmericaNet Bank rate due to fall on May 5th. New rates:
The new rates are as follows:
Rewards Checking

4.00% APY* on daily balances less than or equal to $10,000.00**
1.00% APY* on daily balances greater than $10,000.00**
Rewards Checking accounts limited to two per Social Security number.

Mega Money Market

2.00% APY* on daily balances less than or equal to $35,000.00
1.00% APY* on daily balances greater than $35,000
Mega Money Market accounts limited to one per Social Security number.

Important: Please note that since the rates are changing in the middle of the
monthly statement cycle, your next statement will reflect a “blended” interest rate combining the higher rate during the first part of the statement cycle and the lower rate during the last part of the statement cycle.

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Comment #4 by Anonymous posted on
Anonymous
Redneck Bank, AmericaNet Bank and Evantage Bank are all the same. My neighbor is president of an OK bank and told me that they are developing a bad reputation for their poor online service. So true. I opened 4 accounts and talked with the CS person while opening them online. I went to All America Bank, gave them a cashier's check, personal check to put in the accounts. Two weeks later I was notified that they were waiting for me to complete opening two of the accounts. I called Johnny Branch, VP of Internet Banking and he assured me he would take care of everything. However, they failed to return almost $30,000 for a check I wrote to the bank telling me that I needed to make it out differently and when they received that they would return the other one. They didn't. The deposited the HUGE cashier's check in a virtually no interest account. When I complained to Johnny Branch he told me that the interest was only earned when the account was opened. I asked him three times if I should be penalized for the bank's errors. He refused to answer.

When he gets home tonight I hope his mother crawls out from under his trailer and bits him.

Don't do business with these people.

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Comment #5 by Anonymous posted on
Anonymous
Called b/c their MMA account is paying 2% (higher than many these days) for amounts up to 35G$, only to learn, as the April 16, 2009 poster wrote, that incoming ACH transfers don't post till the fourth day, and even outgoing transfers to verified linked institutions take 4-5 days to post, because of the software they use.

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Comment #6 by Anonymous posted on
Anonymous
Redneck has a very competitive APY on checking (2.0%)

Customer service is friendly & helpful, but ach transfers & billpays, are severely limited to $2500 per transaction per day(inbound as well as out).

Apparently, there is also a significant delay to processing all transactions due to 2nd hand processing by a separate "clearing" bank.

Evidently, this market is so small (Mustang, Ok) that Redneck chooses not to process it's own transactions.

These are significant limitations that add at least several business to any and all transactions.

Something worthy of consideration regardless of the interest rate.

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