Zions Bank increased the rate again on its Deseret Money Market Account. The yield is now 3.53% APY for all balances of $2,500 and higher (it had been 3.31% APY). Until last April, this money market account had maintained competitive rates. But in April this changed, and the rates plummeted to 2.53% APY for the bottom tier. Higher tiers were a little better (3.05% APY $50K+ and 3.25% APY $100K+). I'm not sure why the rates nose-dived in April and then shot back up in June. Perhaps the money market customers withdrew more of their deposits than Zions had anticipated.
The one nice thing about this money market account is that it has limited check writing. The main downside is that it has no real ACH service that allows easy electronic funds transfers to and from your other banks. A reader just recently commented that he is able to use his online accounts at Countrywide and GMAC Bank to link to his Zions account. Then he can initiate ACH transfers from Countrywide to make deposits or withdrawals in his Zions account.
Below are a few of the features of the Deseret MMA. Some of these are based on my conservation with the CSR from last year. Let me know in the comments if there have been any changes.
- No monthly fees, but no interest for balances under $2,500
- Offers Check writing (first 10 checks are free)
- Wire transfers cost $15 for outgoing, $10 for incoming
- ATM card comes with it but no debit card
- Very restrictive ACH service. $500/day limit in or out. Must mail in a form and have overdraft protection or credit card
- Allowed to push/pull funds using another bank's ACH service
- No hard credit inquiries
- Not available to Utah residents
Zions Bank just recently began offering some competitive short-term Online CDs. For more details, please refer to my Tuesday's post.
Zions Bank has been known as a solid bank with good customer service. However, it has slipped a little on its financial ratings. It has a 3.5 star rating (good) at BauerFinancial based on 3/31/08 data. The bank has been FDIC insured since 1934 (FDIC Certificate # 2270). It has 155 branches in Utah and Idaho with over 2,600 employees.
Thanks to the reader Gary who mentioned this new rate in the comments.