The (relatively) high second interest tier presents an interesting possibility. In playing with the numbers, someone who met the monthly requirements and deposited $100K into this RCA would earn a rate of 2.25% on the first $20K and a rate of 1.2% on the next $80K for a combined blended rate of 1.41%.
Are there better alternatives for this high deposit amount?
According to the DA tables, a the best money market
rate in the country for a $100K deposit is 1.31%APY guaranteed until December 2014 (see Ken's blog post of 6/10/14 for details
), but it is limited to Texas residents.
Reviewing the DA personal checking account tables, EverBank's 1.40% APY Yield Pledge Checking 6-month intro rate (see Ken's blog post of 6/3/14 for details
), applies up to $100K but the rate is available only to new customers. Note also that EverBank's 1.4%APY money market mentioned in that blog post applies only to a maximum of $50K.
The DA personal savings tables identify several institutions which offer APYs better than 1.41% on deposits of $100K, but all are credit unions with what appear to be very narrow fields of membership.
So, for someone who keeps a high balance in their accounts, this RCA account seems to compare favorably with other alternatives which offer ready access to your funds (ie; personal checking accounts, money markets, no CDs with EWPs). Of course, there is always the risk that although the 2.25% rate / (2.28%APY) and 1.2% secondary tier have remained unchanged since at least September of 2012, the RCA rates can change at any time.