| Bank or Credit Union | Apy | Min | Max | Product | |
| Incredible Bank | 0.93% | - | $250k | Incredible Checking |
Incredible Bank Announces a Rate Cut Effective May 3rd
Incredible Bank announced to its customers that its checking account rate will fall from 1.74% APY to 1.53% APY effective May 3, 2010. A reader forwarded me the email he received this morning. Here's an excerpt from the email:
Thank you for choosing Incrediblebank for your banking needs. We wanted to let you know that your online checking account rate will be adjusted to 1.53% APY as of May 3, 2010. With no monthly fees or minimums* and a rate that still packs a punch, your online checking account remains a competitive option in the marketplace.
At least they emailed their customers of this change. That's always better than keeping quiet and hoping no one notices.
The last rate cut was on February 19 when the rate fell from 2.02% APY to 1.74% APY.
I'm afraid this doesn't bode well for its future rates. As I mentioned in my last Incredible Bank post, few banks have been able to remain a rate leader for more than a year
The 1.53% APY is still a good deal especially for a non-reward checking account. However, the rate is no longer incredible, and it's getting close to mediocre in my opinion when compared to internet savings accounts.
Most non-reward internet checking accounts don't have a good track record for keeping rates high for the long term. Two examples are Salem Five Direct's eOne Account which had rates over 5% and the Schwab Bank Investor Checking Account which had a yield of 4.25%. Both now have rates way under 1.00%.
Hopefully, Incredible Bank can keep the rates competitive. Readers have commented about many nice online banking features. Here's a recent comment:
Transfers are fast. Checks you send aren't pulled from your account until the person cashes it, allowing a few days of float, which is nice. I've had no problems with them, and hope the rate stays high.
Please refer to Incredible Bank Rates and Reviews page for more details. I have a detailed review in this November post.
Hat tip to the reader who forwarded me the email.
O-Qua Tangin Wann (anonymous) - #1, Friday, April 30, 2010 - 2:05 PM
Not-So-Incredible Bank. Mediocre Bank. It didn't take a genius to know for sure this bank was doing what many other banks have done before it (remember AARP Savings?). Offer a high rate to pull in lots of money and then drop that rate. Yea, I know if they could afford to offer a higher rate they would. But that doesn't make it any better that they offered the 2% in the beginning knowing full well they could not afford that rate.
You might say it is the savers' fault for jumping on the 2% bandwagon in the first place when they knew the rate was just a teaser. And you'd be right. But us savers don't go around saying we are "incredible." As everyone knows, the definition of "incredible" is "beyond belief." Buisnesses with integrity should not call their offerings "beyond belief" when they know 100% in advance they cannot maintain that description.
I suggest people be careful that someday this bank might change that good policy of only taking out the Bill Pay money after the written check clears, since most other banks don't do it this way.
Quovatis - #2, Friday, April 30, 2010 - 2:18 PM
It's still the highest non-reward checking account rate. Yes there are 2% savings accounts, but you're limited to 6 transactions a month. I wouldn't call it mediocre yet.
Jo/GaelicWench (anonymous) - #3, Saturday, May 1, 2010 - 7:49 AM
Ah, yes....the old Bait-and-Switch trick....Until things stablize, I will remain with the accounts I have. That way, once rates start to rise again - perhaps not in my lifetime - I won't need to go through the process of opening accounts again.
Thanks for the heads up. Incredible, they are not. Incredulous, I am not! :-P
djc314 (anonymous) - #4, Saturday, May 1, 2010 - 10:18 AM
Thanks for the hat tip for the info...I am not mad at Incredible as they did keep the rate high for a singnificant period. In today's environment it is pretty easy to open and close accounts and move to banks offering higher interest rates....it is the way of the world right now...
Anonymous - #5, Saturday, May 1, 2010 - 11:01 PM
It seems that when I move money to one bank, it soon drops its rate. Maybe I should see if I can jinx some more?
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