Dedicated to Deposits: Deals, Data, and Discussion
DETAILSINSTITUTIONAPYMINMAXPRODUCT
iGObanking0.90%$25k-iGOmoneymarket
Accounts mentioned in this post. Rates as of July 23, 2014

Big Increase in Money Market Rate at iGObanking.com

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iGObanking

In the last few months we have seen several banks increase their long-term CD rates, but we haven’t seen many rate hikes of savings or money market accounts. That’s why I’m a little surprised at the recent rate hike at iGObanking.com. It increased the top tier rate of its money market account from 0.25% to 1.00% APY. Below are the new money market rates as of 10/04/2013:

  • 1.00% APY on balances of $100,000+
  • 0.75% APY on balances of $75,000+
  • 0.25% APY on balances of $1+

Based on iGObanking.com’s history, these money market rates are probably not a good deal. The bank often offers top rates on certain products for a couple of months, and then it slashes the rates to some uncompetitive level. The latest example is its 5-year CD. For about two months it was offering a 5-year CD with a 2.05% APY. This week the 5-year CD rate was slashed to 0.35%. For a CD this isn’t too bad since if you opened the CD with the 2.05% APY, you’ll be locked into this rate for 5 years until the CD matures. You just have to make sure you don’t let the CD automatically renew at maturity. If you do, you could be stuck with a very low CD rate.

The lack of rate consistency is more of concern with a money market account that has variable rates. Will the rate fall back to 0.25% after a few months?

The iGObanking.com savings account used to have competitive rates before 2010. A big fall in rates started in 2011 and they continued into 2012 until the rate finally bottomed out at 0.25%. The money market account top-tier rate was also 0.25% since 2012. So I’m not optimistic that this 1% money market yield will last over the long run.

If you’re willing to take the chance of a short-lived 1%, please note that the money market account requires a minimum balance of $25,000 to open, to earn interest and to avoid a monthly fee. iGObanking.com does offer an ACH transfer service. The bank has a few details of this service in its FAQs page.

iGObanking.com is a division of Flushing Bank, a New York bank with $4.6 billion in assets. The bank's overall health score at DepositAccounts.com is a B+ with a Texas Ratio of 17.02% (average) based on June 2013 data. Please refer to our financial overview of Flushing Bank for more details. It has been a FDIC member since 2007 (FDIC Certificate # 58564).


  Tags: iGObanking, CD rates

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Comments
Comment #1 by Anonymous posted on
Anonymous
TIAA-CREFF juat lowerd their savings account rate to .49%.  Just moved my funds to another savings account.  How long will the Igo rates last?  That is the question

4
Comment #2 by CapitalClimate (anonymous) posted on
CapitalClimate
TIAA actually lowered their rate before the end of last month to **** you out of some extra interest before you got your statement with the lower rate.  They are clearly not interested in being in the banking business.

3
Comment #3 by Anonymous posted on
Anonymous
They can offer any rate they want.....I will not give them my business again. A few years ago I opened a CD and sent my funds(a sizeable amount) by ACH. Funny......they forgot to mention in their happy littles ads that they hold your funds and don't pay a dime of interest for an entire week! Really nmade me mad. When I complained.....they said the funds were lost in the 'never-never land' of ACH transfers. Reality is that they had my money the 1st business day and earned interest on it for 6 days. Yes......I know......I'm a tightwad and it's no big deal. Well.....I work hard for my money and I want every dime that I invest to work for me. So......hope it was worth it IGO......once my CD matures I'm gone.....never to come back.

4
Comment #4 by bbug (anonymous) posted on
bbug
My TIAA money market account is paying .75%.

1
Comment #6 by Anonymous posted on
Anonymous
#4 Where are you getting that information?  Check your staement and/or logon to your account and see what rate you are getting. 

1
Comment #5 by Anonymous posted on
Anonymous
When I logon tomy TIAA-CREFF the rate listed is .49.  The site says the rate is .75.  I moved all the money from TIAA to my AMEX savings paying .85.  The APY for TIAA on my statement ending 9/30/2013 was APY .64%.  These are such small numbers. 

1
Comment #7 by bbug (anonymous) posted on
bbug
I logged into my account. It said .75% and I calculated the last interest actually credited was .75%.

 

 

1
Comment #8 by Anonymous posted on
Anonymous
I just logged on to my account and it says .49 (Last months statement ending 9/30 states .65%.  The site says .75%.  Closing the account.   Woudln't know why you would get a higher rate. 

1
Comment #9 by bbug (anonymous) posted on
bbug
#8

 

Is yours a savings account? Mine is a money market.

2
Comment #10 by Anonymous posted on
Anonymous
BBUG  Only the rate on the savings went down last month. The money market states .75.  I just closed my TIAA-CREFF and opened a CIT bank savings account that pays .90% for balances over 25,000.  They just sent the email today with the offer. Below 25K it's .85%.  These #'s are small but I always found TIAA-CREFF a little strange with their 5K limit on external transfers.  You could always pull more from your linked accounts

2
Comment #11 by Anonymous posted on
Anonymous
bbug  Keep an eye on the rate.  They could drop it anytime

1