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Rate Cuts Announced at Evantage, AmericaNet and Redneck Bank

POSTED ON BY

The banks offering the only non-promo nationwide 2.00% savings account have announced a rate cut. The three internet banks owned by the Huckabay family (Evantage, AmericaNet and Redneck Bank) have posted the following note in their Mega Money Market pages:

Effective November 18, 2010, the interest rate offered on Mega Money Market Checking Accounts will be 1.75%.

A similar rate cut is also scheduled for the reward checking account:

Effective November 18, 2010, the interest rate offered on Rewards Checking Accounts will be 3.75%.

I don't see any notice regarding balance cap changes, so hopefully, those will remain the same. For the Mega Money Market, the top rate applies to balances up to $35K. The reward checking top rate applies to balances up to $10K.

These rates have held since May 2009.

When I last reviewed the Mega Money Market accounts in August, I expressed concern about them maintaining the 2.00%. As I mentioned in August, the parent banks of Evantage and AmericaNet are small. Their combined deposits are only $149.56 million based on 6/30/2010 data. So it doesn't take too many customers to increase their deposits. If deposits are growing without an increase in their loans, they'll have to reduce their deposit growth by either cutting rates or by reducing availability of new accounts.

There are some savings accounts in the nation that offer higher rates. However, these are tied to the banks' reward checking accounts. This is common for the banks which offer the Kasasa branded accounts. The reward checking is called Kasasa Cash and the savings is called Kasasa Saver. A good example of this combo is at First Arkansas Bank & Trust which offers (as of 10/7/2010) a Kasasa Cash account that pays 3.50% APY for balances up to $35K and a Kasasa Saver account that pays 2.04% APY for all balances. However, this 2.04% APY only applies if the Kasasa Cash monthly requirements are met (Note, these accounts are now only available for Arkansas residents. See review).

The nice aspect of these Mega Money Market accounts is that they do not require that you meet the reward checking monthly requirements to qualify for the top rate. In fact, you don't even need to have the reward checking account to open the Mega Money Market account. The only thing that sets the Mega Money Market apart from the typical online savings account is that there's a maximum balance of $35K for the top rate. The portion of the balance above $35K only earns 1.00% APY. I'm not sure if this is scheduled to change in November.

Thanks to the reader tightwad who posted this rate cut news in the discussion forum.


  Tags: AmericaNet Bank, Evantage Bank, Redneck Bank, savings account, money market accounts

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Comments
9 Comments.
Comment #1 by CandyCane posted on
CandyCane
You just knew this was coming as all the banks will eventually reduce the interest rates on reward checking to the point where they are not worth bothering with for the average customer.  How low will interest rates have to fall before it becomes fruitless to even track them....???

7
Comment #2 by Anonymous posted on
Anonymous
You gota be one die hard rate chaser to keep running around opening accounts all over and keeping up with all the requirements. I seen some people here talk about 20 or 30 accounts, crazy, but I seen the show "hoarders" so I understand the mentality.

This whole "rate" game  has pretty much come to an end for "an extended period" per Uncle Ben and the boys, they will do everything necessary to force people into their ponzi market, but than so many 401k are in it they can't let it drop or risk a hell of a riot. Gold has gone so insane that most average people can't be buying it now either, but even that will drop at some point and it doesn't earn any interest along the way, you just have to hope it keeps going up if you own it.

I'm not playing Ben's game, I'll keep my savings in one of the 3 "local" banks and the one CU available to me, where I can walk in and look someone in the face when I need to. I just moved some funds from a .70 mny mkt to a 12 mo CD at the CU @ a lousy 1.10%, but its there and I don't need to stay awake 24/7 watching the clowns on CNBC. I don't use deb cards at all, and only use a CC once in a while so all this account requirement stuff is out for me as it is.

If things go the way I have read on some financial blogs, all our money won't be worth squat anyway, I'm glad I had this much life at least, cause it will be years before it ever turns back around.

So buckle up, its gona be a long down hill fun "rate" ride

 

4
Comment #3 by Alan posted on
Alan
The rate drops by Redneck, AmericaNet, and Evantage are encouraging in several respects.  The rate drop for the Reward Checking (4.00% to 3.75%) was significantly less than the most prominent bank (Danvers Bank, 4.01% to 3.01%), and these banks gave their customers well over a month's warning on their websites.  The drop on their MegaMoney (money market) accounts from 2.00% to 1.75% still keeps them in the top tier of Money Market yields.  The few banks/credit unions offering anything close to 1.75% have high minimums (25K ) or account restrictions (maintenance of other accounts at the bank).

8
Comment #4 by 51hh posted on
51hh
Yes, a minor drop in rate this time; but the $10K cap (before) was already a big cut from $25K. 

3
Comment #5 by Anonymous posted on
Anonymous
Wasn't this information posted on Fatwallet days ago?

11
Comment #6 by 51hh posted on
51hh
Anon. #5: "Wasn't this information posted on Fatwallet days ago?"

No, it just happened today; first posted here and FWF (early morning) today.  There were many rate changes lately, you may get confused with other rate changes.

5
Comment #7 by Anonymous posted on
Anonymous
You're both "right".

The rate drop for Evantage's money market account was posted a few days ago (10/4 in the "Best National..." sticky.  It wasn't tied to the rest of the rate drops until today though.

5
Comment #8 by Anonymous posted on
Anonymous
Yippee...Redneck/AmericaNet now drop to the same rate as SmartyPig, with none of the same benefits...and Redneck/AmericaNet still take 3 business days for an ACH transfer, plus there's their atrocious web interface...

Someone tell me why I should continue to maintain accounts there, because I'm just not seeing it anymore.

1
Comment #9 by Anonymous posted on
Anonymous
Which is a better bank to invest in: AmericaNet or Evantage? Do they  have the same hidden fees, etc? Thanks

1