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

Wednesday, January 30, 2013 - 2:40 PMBank of Internet USA - Details
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.
ekatekat75 posts since
Jan 22, 2010
Rep Points: 246
1. Wednesday, January 30, 2013 - 3:17 PM
Thanks for posting this news. Sorry to see the balance cap, but I guess it should have been expected. It would be interesting to know some of the large balances people had in this account.

As you mentioned, at least this suggests that the 1.25% apy will hold for awhile. Also, the new balance cap could have been much smaller. Let's hope we don't see more shrinkage in the future.

I guess existing customers were notified of the 3/1/13 effective date? Makes sense from a 30-day advanced notice requirement. I see that this new balance cap applies immediately to new customers. According to the small print at BofI's website:
Account balance greater than $150,000 will not earn interest. Applies to accounts opened after 1/29/2013.

Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
2. Wednesday, January 30, 2013 - 7:57 PM
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).
ekatekat75 posts since
Jan 22, 2010
Rep Points: 246