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.
Hat tip to the reader who forwarded me the email.