I mentioned this change in my last weekly recap, but I thought this change was worth mentioning in a new blog post since the rate is one of the highest non-promo rates for nationally available money market or savings accounts. Incredible Bank has made a nice change to its money market account. The top rate used to apply only to balances of $100K to $250K. Now the top rate applies to balances of $2,500 to $250,000. As of 8/15/2011, the yields are 1.25% APY for balances $2,500 to $250,000 and 0.80% APY for over $250,000.
One thing that hasn't changed is the monthly fee. There is still a maintenance fee of $10 if the average collected balance falls below $2,500 during the statement cycle.
Before this change the money market account didn't have much benefit over Incredible Bank's checking account. The checking account offers a top rate for all balances up to $250K, and it has no monthly fees. As of 8/15/2011, that top yield is 1.21% APY. You can now benefit from the money market account with a much smaller balance. However, 4 basis points is still not a big difference, and may not be worth the risk of being hit with a monthly fee. It'll be interesting to see if this interest rate spread widens in the future.
The checking account has remained very competitive since I first reported on it in November 2009. Its 2nd year anniversary is just a few months away. Very few internet banks have been able to maintain rates near the top of its competition for two years. Please refer to my Incredible Bank checking account review for more details.
Incredible Bank continues to offer very competitive short-term CD rates. These include a 1.10% APY 9-month CD, a 1.30% APY 13-month CD and a 1.50% APY 19-month CD (as of 8/15/2011). I have a feeling these may not last much longer. It has regularly offered CDs for a period of weeks to a couple of months. Then it stops offering them. It has gone through this cycle three or four times during the last year. I first reported on these current CD specials on June 3rd.
Incredible Bank Overview
Incredible Bank is a division of River Valley Bank which is based in Wisconsin. The bank has $952 million in assets. It has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 23.46% (average) based on March 2011 data. Please refer to our financial overview of Incredible Bank for more details. The bank has been a FDIC member since 1967 (FDIC Certificate # 19772).
Edit 4:40pm: corrected bank name typo.