RCA Rate Dropped To 3.09%

BotS was one of the most popular RCA in December 2009, with 4.51% APY ($25K), national availability, and multiple account allowance.  The application process was a bit peculiar, accepting more "senior" applicants. 

One of the shortcomings for BotS was its separate site of e-statement signup, depriving some of their hard-earned interest.

Recently it went through the downward spiral as many typical RCAs: (1) Dropped rate from 4.51% to 4.09%, (2) lLmited its national availability to two states only, (3) Limited to one account per customer (SS number), and now (4) dropped their rate to below avearge (3.09%) -- average being about 3.5%.

I like their website and nice customer service.  However, they do not offer free starter checks, which is a must with us for bailing out multiple accounts.  Luckily, we bailed long ago iin a massive manner for a 5% offer and never looked back.  Now we have only two accounts with them, average about $20 in each account.  It is time to close our accounts with them, meeting their six-month requirement (to avoid early closure fee).

Lesson learned: There are no RCA banks that one can count on (the motto is "enjoy it while you can!").  Do not fall in love with any banks/credit unions.  If you desire those high RCA interest rate, always be on the look-out and be ready to switch.  When open RCAs, always get some checks (preferably free ones, or cheap ones).     

Dear Reward Checking Customer,                                               December 3, 2010

 

 

At Bank of the Sierra, we are pleased that you selected Sierra Reward Checking as your high interest account of choice.  We are truly committed to providing you the financial products and services you need.

 

As a courtesy, we are notifying you that effective December 3, 2010, the current Sierra Reward Checking and Sierra Reward Savings rates will be adjusted as follows:

 

·         Sierra Reward Checking                     Up to $25,000                         2.09% APY*

Balance Over $25,000            0.50% APY*

 

·         Sierra Reward Savings                       Up to $25,000                         1.09% APY*

Balance Over $25,000            0.50% APY*

They were allowing 2nd RCAs w/reward savings option per acct last month.  But this rate drop of 1 full pt. on both may be too much for all the debits (12 per) and double ach's (min. 1 in & 1 out).  Will be moving on, tho' seems likely all rca's will likely drop soon, so have to consider how much chasing to do now... 2.09% is the going cd rate, and at least my funds are liquid.  Still....