Bank Of Internet Rca Cap 150K Eff 3/1/13

Over 150k will earn 0.  Previously there was no limit on the account, which made this rca particularly appealing, given its requirements of 1 or 6 debit card uses, 1k direct deposit (ach ok), and 2 bill pays to earn 1.24%.  That and it's tiered to give .31% per qualifier, so if you don't meet all the requirements, you still earn, unlike the usual all-or-nothing. 150k cap @ 1.24% for 6 debit cards uses (v. usual 10-15) is manageable to beat the current savings rates for liquid funds, since most rca are becoming too much work for the combined lower rates and caps. 

At least the notice confirms the rate is holding, which these days is a constant question.

Customer notices were sent this morning that "Effective March 1, 2013, some Fees and Charges will increase, and certain Terms will be amended..."  Besides the cap, it looks like the other change regards a $1 per transfer fee for each overdraft transfer that a linked account automatically covers. 

I had been more surprised this account did not have a cap than now hearing about one being imposed. I had also wondered the extent of large balances, since it seemed like a convenient account for funds up to the insured 250k. However, their ach takes 3 business days in or out, so it's better to have a faster external source to push/pull. Plus, their external transfer limits are comparatively low - inbound and outbound each are 2k per transfer or per day with 5k max monthly. (The bank can exercise discretion to increase, if the activity over at least 3 months suggests such consideration.) They do provide free checks upon account opening, so large amounts can be moved traditionally.

With rca rates and caps going so low, it's been worthwhile to fold some into this account. The new cap still provides room, considering how many standard 25k cap rca can fit, let alone 10-15k cap shrunken ones - all requiring 10-15 debits per account, which are especially worth eliminating when multiplied.

In this climate, the notice was actually good news (if it holds).