Dedicated to Deposits: Deals, Data, and Discussion

Great Money Market Deal in Louisiana at First NBC Bank

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First NBC Bank

I’m starting to see higher rates on checking and money accounts at a few banks. These have been local deals, and that’s the case with First NBC Bank in Louisiana. This bank is offering very competitive rates on its checking, savings and money market accounts. Its Premier Investment Money Market Account is the best deal with a top-tier interest rate of 1.51% APY. This requires a minimum balance of $1 million. The lower tiers are still good deals that don’t require a huge balance. The interest rate tiers are shown below and are based on the bank’s rate sheet as of 3/21/2014:

  • 1.51% APY for $1 million and up
  • 1.38% APY for $250K to under $1 million
  • 1.26% APY for $10K to under $250K
  • 0.50% APY for $5K to under $10K
DETAILSINSTITUTIONAPYMINMAXPRODUCT
First NBC Bank1.51%$1m-Premier Investment Money Market Account
Accounts mentioned in this post. Rates as of August 22, 2014

As you can see, just a $10K balance allows you to earn an interest rate that’s higher than any rate you can get from nationally available liquid bank account that isn’t a reward checking account.

The Premier Investment MMA has no monthly service charge. It does require a minimum initial deposit of $5,000, and you have to maintain at least $5,000 to earn any interest. As is common with money market accounts, you can write up to six checks per month.

Availability

I was told by a bank CSR that a branch visit is required to open an account, and you must reside in their market area in Louisiana.

Bank Overview

First NBC Bank branches are located in several Louisiana cities. Some of these include New Orleans, Jefferson, Metairie, Hammond, Slidell and Denham Springs.

It’s a sizeable community bank with over $3 billion in assets. The bank has an overall health grade at DepositAccounts.com of an A+ with a Texas ratio of 5.12% (excellent) based on December 2013 data. Please refer to our financial overview of First NBC Bank for more details. The bank has been a FDIC member since 2006 (FDIC Certificate # 58302).

How This Money Market Account Compares

The highest rate on a nationally available money market account is 1.15% APY at Connexus Credit Union. This requires a $100K balance and an active checking account. The highest rate without a checking requirement is 1.01% APY. This is available from the savings account at SFGI Direct. These rates are accurate as of 3/21/2014.


  Tags: First NBC Bank, money market accounts, Louisiana

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Comments
10 Comments.
Comment #1 by Anonymous posted on
Anonymous
How long will it last?

6
Comment #2 by Anonymous posted on
Anonymous
Finally there's a reason for someone to live in Louisiana.

8
Comment #3 by Anonymous posted on
Anonymous
You obviously don't have a clue about Louisiana. Great food, great music, low cost of living, friendly people and a sunny, warm climate where freezing temps and snow are a rare event. Now tell us where you live and let's see if there's a reason for anyone to live there.

9
Comment #4 by DCGuy (anonymous) posted on
DCGuy
One million minimum?  That shouldn't be an issue for many of the DA members.

5
Comment #9 by Truthseeker (anonymous) posted on
Truthseeker
It ought to be a HUGE issue, unless the bank allows the total to be split into many accounts, or you have enough payable-on-death beneficiaries to get your FDIC insurance up to $1 million plus.  Remember, without tricks, the FDIC only insures depositors up to a maximum of $250,000 per account, and doesn't have even 1/200th of the amount of money, in its trust fund, that would be needed if a series of big bank failures happened...

2
Comment #10 by Truthseeker (anonymous) posted on
Truthseeker
Let me clarify that per "account" means per person.  One person holding two accounts at the same bank is insured ONLY to $250,000, so if he has $250,000 in each account, and the bank fails, he potentially loses $250,000.

4
Comment #5 by QED posted on
QED
It's interesting watching rates change direction ever so slowly.  Frankly, it's well beyond my comprehension or ability to predict as to timing.  You have to allow some forays so far have likely been speculative, e.g., at PenFed.  I also expect there will be ebbs and flows as rates trend upward.  But I really don't know.  Heck, an explosion of rates could lie just ahead yet be out of sight today.

I hope things continue like this, with slow upward movement.  If rates explode it's going to be much more difficult for us to exit our longer CD's.   

3
Comment #6 by Anonymous posted on
Anonymous
Only $250,000 of the million would be covered by credit union insurance right?

3
Comment #7 by paoli2 posted on
paoli2
What is really going on here with First NBC?  When I lived there I never put one cent in that bank because they always had such low rates.  "Now" they are raising rates??  There has to be more to this than outsiders know.  This is very interesting.  Could they be trying to get savers before the other banks because they think rates are going up??

4
Comment #8 by Anonymous posted on
Anonymous
Tell you what I'll do. Give me 1 million for one year and I'll gladly pay you 1.51% interest while I earn 3% on it. Why people are so enamored by teaser rates used by banks to finance their windfalls. I know small-time local bankers paying themselves million dollar salaries (not including bonuses) while they laugh...all the way to the bank. Their average depositors rake in a stunning .25%.

PS
Before QE their salaries were in the 200K range. Go figure. 

5