4.00% Money Market Account Guaranteed to 6/30/09 at Bank of the Carolinas


Bank of the Carolinas is offering 4.00% APY on its money market account on balances over $10,000. The especially nice feature is that the yield is guaranteed through June 30, 2009. There's a $5/month fee for balances under $1,000. The yield for balances under $10,000 is only 0.25% APY.

It appeared to require a branch visit, but since this deal was especially hot, I called to verify. Unfortunately, the CSR said new accounts do require you to come into a branch. According to the CSR, this promotion just started today, so it should last for awhile.

The bank also offers a reward checking account with a yield of 4.50% APY (see post).

Branches are located in the North Carolina cities of Winston-Salem, Mocksville, Lexington, Landis, King, Harrisburg, Concord, Cleveland, Asheboro and Advance.

The bank has a 3.5 star rating (good) at BauerFinancial based on 3/31/08 data. It has been FDIC insured since 1998 (FDIC Certificate # 34903).
O-Qua Tangin Wann
O-Qua Tangin Wann (anonymous)   |     |   Comment #1
Who wants to give me a ride to North Carolina?

****! I am all the way across the country. Is this bank stupid? They would get a lot of deposits if they allowed out-of-state people to get that 4% account.

I guess they really don't want millions and millions of dollars in new deposits.

I wonder what they are afraid of?

~O-Qua Tangin Wann
Banking Guy
Banking Guy (anonymous)   |     |   Comment #2
Yea, when the CSR told me of the branch-visit requirement, I knew this would be a disappointment to many. This kind of one-year rate guarantee is rare.
Anonymous   |     |   Comment #3
"I guess they really don't want millions and millions of dollars in new deposits.
I wonder what they are afraid of?"

Possibly they are afraid of not being certain that they have a place to invest their funds which, for the nearly unlimited amount of principle they might get if they made this offer nationally, will give them a GUARANTEEED 4% plus (plus of course whatever expenses they have to make this offer), for 1 year. The basics of being a bank is that you have to make more on the funds you take in that you are paying out - see IndyMac.
tuphat (anonymous)   |     |   Comment #4
Just to be clear: the first $10k only earns 0.25%; it's only amounts in excess of $10k that earn 4.00%. Still a pretty good deal if seen as hedge against flat or falling rates.
Anonymous   |     |   Comment #5
Thanks so much for this info!!! I live in Charlotte and visited their new Concord, N.C. branch today. It was almost 40 miles one way from my house, but I opened 2 accounts with various POD benes so that I could maximize my FDIC coverage. They were very nice and professional. How rare to get a 10 month guarantee on a 4% money fund rate. It's like a CD that lets you get your money any time. Maybe in 10 months those 6% CDs will be back!
Banking Guy
Banking Guy (anonymous)   |     |   Comment #6
Thanks for the info. Glad to read the promo is still available.
Anonymous   |     |   Comment #7
The posting on July 20, 2008 is incorrect. If you keep over $10,000in the account, the whole account receives 4%, not just everything over $10,000. The .25% rate only kicks in if your account balance falls below $10,000.I have confirmed this via phone call with "Mat" in their operations center as well as via e-mail with "Janet" (who opened my accounts)in their Concord, N.C. office. Thanks.
4.00% Reward Checking Account at Bank of the Carolinas
Update 6/27/09: The top rate has fallen to 4.00% APY. Refer to the bottom of the post for the rate history.

Bank of the Carolinas is offering a reward checking account called Free Shine Checking that pays 4.00% APY on balances up to $25,000 (1.01% for above) and refunds ATM fees if the following monthly requirements are met:
  • 12 debit card purchases
  • one direct deposit or automatic debit
  • receive e-Statements
If these are not met, the rate falls to 0.10%. The minimum opening deposit is $50. There are no minimum balance requirements or monthly service...

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