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Allegiance Bank in Pennsylvania Slashing Its Reward Checking Rate

Friday, February 19, 2010 - 6:24 PMAllegiance Bank
A reader has reported the top rate is scheduled to fall from 2.75% to 0.85% effective 3/01/2010. The 2.75% was great, but it had a very high balance cap of $250K. Also, the debit card usage requirement is scheduled to end. So it looks like it'll become like a regular interest checking account. Wonder if the FDIC rate caps had anything to do with this change?

I had just reported on Tuesday that residents of PA, NJ and DE could open this account online. So much for this deal.

Thanks to the reader who commented on this news.
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Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Friday, February 19, 2010 - 7:04 PM
That was fast.  There is a good trade between high balance cap and high yield.  A good balance would be to take the 4% rate with a larger balance (say $100,000) vs. the 5% top rate with $25,000.  I would not take 2.75% with any high balance since 4% is my bottom-line rate.
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51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
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