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Northstar Bank (TX) RCA Rate Increased To 4.01%APY From 3.51% Effective 3/17/11

Friday, February 11, 2011 - 3:41 PMNorthstar Bank of Texas - Details
Highlights from a letter received today:

Effective 3/17/11:

1.   the rate on the Velocity Checking (RCA) account will increase from 3.51%APY to 4.01%APY

2.  the balance cap to earn the highest interest rate will be lowered from $50,000 to $30,000.  Funds over $30,000 will earn 0.50%APY instead of the current above cap rate of 1.01%APY

3.  A free saving product (Velocity Saver) is being added.  Interest earned on the Velocity Checking account and ATM surcharge refunds will be automatically added to the Velocity Saver account.  If you meet Velocity Checking qualifications, you will earn 1.5%APY for amounts up to a maximum of $20,000. This is the standard Rewards checking + associated savings account structure used by many institutions. 

In addition, in conversation with a CSR, there is now a limit of only one Velocity Checking account per Social Security number. 

While the rate has increased, someone with a $50K balance, will now earn 15% less in interest (current annual interest (approximately):  $1755 , $1500 under this new arrangement).  Nonetheless, it is still a good deal in this economic environment. 

 



 
8
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
1. Friday, February 11, 2011 - 6:25 PM
Rate increase? How shocking! Never thought I would see this in 2011. Well, it's just reshuffling numbers - the bank still wins. But I take the increase as a sign of better things to come this year, maybe...
1
darkdreamer4udarkdreamer4u174 posts since
Jun 11, 2010
Rep Points: 630
2. Saturday, February 12, 2011 - 9:44 AM
I forgot to add that I did ask the CSR about grandfathering in current accountholders to the $50K cap but unfortunately that is not an option.
5
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
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