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Update on the Huckabay's Internet Banks and Their Top Rates

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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:

Hat tip to the reader who mentioned the change at Redneck Bank in the Open Discussion Thread.

  Tags: Redneck Bank, AmericaNet Bank, Evantage Bank, savings account, checking account

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Comments
3 comments.
Comment #1 by Anonymous posted on
Anonymous
I was extremely disappointed in the customer service at Americanet Bank.  I am presently on a contract job in Antarctica and was told that I could not open an account since my mailing address did not match my drivers license.  They treated my as if I was lying and a criminal. The bank may have good interest rates but with that kind of inhumane treatment I do not recommend this bank to anyone who likes respect.

4
Comment #2 by Dave (anonymous) posted on
Dave
Does anyone know if you can get away with opening an account with 35k each at Americanet and Evantage and still receive the 2%? I have an account already at Evantage for 35k.  thanks

3
Comment #3 by Dave (anonymous) posted on
Dave
Well I was successful opening up an account at America Net. The rate is 2%. So I am receiving 2% at both this bank and Evantage with combined balances over $35k. Using my trusty Ally Bank account to facilitate ACH transfers in and out.

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