Redneck Bank has stopped accepting new applications for its 2% Mega Money Market account. A "Sold Out" notice appears over the "open your account" link on the Mega Money Market page. Redneck Bank had stopped accepting new applications for its reward checking account last year. Even the "You're Approved Checking" is "Sold Out". The only account available for new customers is the free checking account that offers no interest. So if you really want a Redneck Bank debit card, you can still get one, but if you want high interest rates, you'll have to look to Redneck Bank's two sister banks.
As I described in this previous post, Redneck Bank and its two sister banks, Evantage Bank and AmericaNet Bank, are internet divisions of three Oklahoma banks which are all owned by one family (the Huckabay family). In early 2009 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. The other two banks haven't been as popular. That's fortunate for us savers, since they continue to accept applications (as of 6/03/10) for the Mega Money Market account and the reward checking account. And also important, they continue to hold on to very competitive rates.
Below is a summary of the two accounts that are available at both EvantageBank.com and AmericaNetBank.com as of 6/03/2010:
- Mega Money Market: 2.00% APY up to $35K, 1.00% for portion of balance above $35K
- Reward Checking: 4.00% APY up to $10K, 1.00% for above, 0.25% if requirements are not met
As I mentioned yesterday, more banks are offering companion savings accounts with their reward checking accounts. However, one nice aspect of this Mega Money Market account is that you don't have to have the reward checking account. So you don't have to worry about debit card usage.
The $35K balance cap is one downside to the Mega Money Market Account, but even if you have over $35K, you might do better in this account than savings accounts at other banks. For example, with a $70K balance, you'll earn about 1.50% APY (2% on the first $35K and 1% on the second). This is still better than the rates of most internet savings accounts.
After SmartyPig introduced a new rate tier in which the rate of the entire balance goes down once you reach $50K, I'm now taking a closer look at the disclosures to see if the bank does SmartyPig's approach or a blended APY approach. SmartyPig's approach is nice if the rates go up for the higher tiers, but it can be a rude surprise when the rates go down.
I was able to find AmericaNet Bank's account disclosure in the application. Here's a direct link (pdf). As you can see below, it is a blended APY:
If the daily balance is more than $35,000.00, the interest rate paid on that portion of the balance will be 0.99%. The annual percentage yield for this tier will range from 2.00% to 1.00%.
So you don't have to worry about going over $35K.
One downside that has been reported about these banks is a slow ACH bank-to-bank transfer service. If you want faster transfers, using another bank's ACH service (like Ally Bank) to deposit and withdraw money would be a better choice.
For more 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
Hat tip to the reader who mentioned the change at Redneck Bank in the Open Discussion Thread.