H&R Block Bank is offering some competitive rates on its money market account and on some of its CDs. The money market account is currently the most competitive with a 1.50% APY for balances of at least $50K. It's a tiered rate account with lower rates for smaller balances. It probably won't be worth it for those with balances under $50K. Another thing to keep in mind with H&R Block Bank is that they tend to keep rates steady for quite a while, BUT when rates fall, they go way down. This happened last year when the top money market yield was 3.25%. Less than 2 weeks after I posted on this 3.25% APY, the yield fell to 1.75%.
The money market tiered rates as listed at H&R Block Bank rates page as of 10/06/2010 are as follows:
- 1.50% APY $50,001+
- 1.25% APY $25,001 - $50,000.99
- 1.05% APY $10,001 - $25,000.99
- 0.90% APY $5,001 - $10,000.99
- 0.75% APY $1,001 - $5,000.99
- 0.60% APY $0 - $1,000.99
Some important features of the account include:
- $1,000 minimum daily balance to avoid $10/month fee
- monthly refund up to $6 on non-H&R Block ATM transactions
- ACH for initial funding (application via Andera.com)
- No apparent ACH service after account is opened
CD and IRA CD Rates
Currently, the most competitive CD and IRA CD rate is the 1-year CD which has a 1.50% APY. Some of the others that are fairly competitive include the 1.75% APY 2-year CD and the 2.00% APY 3-year CD. Minimum deposit is $250. These rates are listed in H&R Block Bank's rates page as of 10/06/2010.
Details of the CDs are listed in the bank's FAQ page. Some important details mentioned in this FAQ include:
- Early withdrawal penalty is 90 days of interest (in the past I've been told it's more for terms of over 24 months)
- 10 day grace period at maturity
- For applications mailed in, as long as the postmark is not after the rate was in effect, they will honor the rate/APY.
- Interest earned on a CD can be paid monthly, quarterly or upon maturity at the customer's option.
The bank's overall health score is 4 out of 5 with a Texas Ratio of 31.22% (above average) based on 6/30/2010 data. Please refer to our financial overview of H&R Block Bank for more details. The bank has been a FDIC member since 2006 (Certificate # 58124).