RedneckBank.com and its sister banks, EvantageBank.com and AmericaNetBank.com, are internet divisions of three Oklahoma banks which are all owned by one family (the Huckabay family). About a year ago I reported on an Oklahoma news article about Wade Huckabay and how he came up with the name Redneck Bank. He wanted it to stand out from the other internet banks, and it worked. I was worried that the publicity would attract so many new customers that they would be forced to lower rates. That did happen in April 2009, but since April, the rates and balance caps have remained the same. With so many other internet banks cutting rates, the accounts at Redneck Bank and its two sister banks have become much more competitive.
As of 3/11/2010, the three banks offer a reward checking and savings account with the following rates and balance caps:
- Reward Checking: 4.00% APY up to $10K, 1.00% over (not available at Redneck Bank)
- Mega Money Market: 2.00% APY up to $35K, 1.00% over
I just noticed that Redneck Bank's reward checking account is not available for new customers. So if you want this account, you'll have to open it at one of the two sister banks. Instead of a reward checking account, Redneck Bank offers a free checking account so if you just want the Redneck Bank debit card, you can still get it.
The reward checking account used to have a $25K balance cap. The 4% may not be worth it for many with a $10K cap. The nice thing about the reward checking account is that it doesn't have direct deposit requirements. The only "difficult" requirement is the 10 debit card purchases a month.
The Mega Money Market account is really more of a savings account since it doesn't offer checks. One important thing to note about this account is that you don't have to meet the checking account requirements to qualify for the top rate. The only issue is that they have a $35K balance cap for the top rate. Like the reward checking account, it has no monthly fees or minimum balance requirements.
Other banks have implemented similar caps. One example is Presidential Bank's Premier Savings which currently has a top rate of only 1.25% APY for the first $35K. The rate falls to 0.75% for balances over $35K.
All three Oklahoma banks have an online application that's based on the Andera service which allows funding by an ACH transfer. In the application, you can sign up for bank-to-bank transfers. One downside is that they have a very small transfer limit of $2,500 per day. A better way to transfer money in or out of these accounts is by initiating an ACH transfer from another bank.
These three Mega Money Market Accounts are some of the few nationwide savings accounts that are still paying at least 2.00% (as of 3/11/2010). With the $35K cap, it's not ideal, but at least the rate has been holding. Let's hope they can continue without any rate or balance cap cuts.
For details about these banks and accounts, please refer to the following posts:
- Evantage Bank Reward Checking Review
- Redneck Bank Reward Checking Review
- AmericaNet Bank Reward Checking Review
- Review of the banks' Mega Money Market Account
- History of Redneck Bank
Edit 3/15/10: Fixed links