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Accounts mentioned in this post. Rates as of May 5, 2016.

Big Increase in Money Market Rate at iGObanking.com


In the last few months we have seen several banks increase their long-term CD rates, but we haven’t seen many rate hikes of savings or money market accounts. That’s why I’m a little surprised at the recent rate hike at iGObanking.com. It increased the top tier rate of its money market account from 0.25% to 1.00% APY. Below are the new money market rates as of 10/04/2013:

  • 1.00% APY on balances of $100,000+
  • 0.75% APY on balances of $75,000+
  • 0.25% APY on balances of $1+

Based on iGObanking.com’s history, these money market rates are probably not a good deal. The bank often offers top rates on certain products for a couple of months, and then it slashes the rates to some uncompetitive level. The latest example is its 5-year CD. For about two months it was offering a 5-year CD with a 2.05% APY. This week the 5-year CD rate was slashed to 0.35%. For a CD this isn’t too bad since if you opened the CD with the 2.05% APY, you’ll be locked into this rate for 5 years until the CD matures. You just have to make sure you don’t let the CD automatically renew at maturity. If you do, you could be stuck with a very low CD rate.

The lack of rate consistency is more of concern with a money market account that has variable rates. Will the rate fall back to 0.25% after a few months?

The iGObanking.com savings account used to have competitive rates before 2010. A big fall in rates started in 2011 and they continued into 2012 until the rate finally bottomed out at 0.25%. The money market account top-tier rate was also 0.25% since 2012. So I’m not optimistic that this 1% money market yield will last over the long run.

If you’re willing to take the chance of a short-lived 1%, please note that the money market account requires a minimum balance of $25,000 to open, to earn interest and to avoid a monthly fee. iGObanking.com does offer an ACH transfer service. The bank has a few details of this service in its FAQs page.

iGObanking.com is a division of Flushing Bank, a New York bank with $4.6 billion in assets. The bank's overall health score at DepositAccounts.com is a B+ with a Texas Ratio of 17.02% (average) based on June 2013 data. Please refer to our financial overview of Flushing Bank for more details. It has been a FDIC member since 2007 (FDIC Certificate # 58564).

Related Pages: iGObanking, New York, CD rates

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Anonymous   |     |   Comment #1
TIAA-CREFF juat lowerd their savings account rate to .49%.  Just moved my funds to another savings account.  How long will the Igo rates last?  That is the question
CapitalClimate (anonymous)   |     |   Comment #2
TIAA actually lowered their rate before the end of last month to **** you out of some extra interest before you got your statement with the lower rate.  They are clearly not interested in being in the banking business.
Anonymous   |     |   Comment #3
They can offer any rate they want.....I will not give them my business again. A few years ago I opened a CD and sent my funds(a sizeable amount) by ACH. Funny......they forgot to mention in their happy littles ads that they hold your funds and don't pay a dime of interest for an entire week! Really nmade me mad. When I complained.....they said the funds were lost in the 'never-never land' of ACH transfers. Reality is that they had my money the 1st business day and earned interest on it for 6 days. Yes......I know......I'm a tightwad and it's no big deal. Well.....I work hard for my money and I want every dime that I invest to work for me. So......hope it was worth it IGO......once my CD matures I'm gone.....never to come back.
bbug (anonymous)   |     |   Comment #4
My TIAA money market account is paying .75%.
Anonymous   |     |   Comment #6
#4 Where are you getting that information?  Check your staement and/or logon to your account and see what rate you are getting. 
Anonymous   |     |   Comment #5
When I logon tomy TIAA-CREFF the rate listed is .49.  The site says the rate is .75.  I moved all the money from TIAA to my AMEX savings paying .85.  The APY for TIAA on my statement ending 9/30/2013 was APY .64%.  These are such small numbers. 
bbug (anonymous)   |     |   Comment #7
I logged into my account. It said .75% and I calculated the last interest actually credited was .75%.


Anonymous   |     |   Comment #8
I just logged on to my account and it says .49 (Last months statement ending 9/30 states .65%.  The site says .75%.  Closing the account.   Woudln't know why you would get a higher rate. 
bbug (anonymous)   |     |   Comment #9


Is yours a savings account? Mine is a money market.
Anonymous   |     |   Comment #10
BBUG  Only the rate on the savings went down last month. The money market states .75.  I just closed my TIAA-CREFF and opened a CIT bank savings account that pays .90% for balances over 25,000.  They just sent the email today with the offer. Below 25K it's .85%.  These #'s are small but I always found TIAA-CREFF a little strange with their 5K limit on external transfers.  You could always pull more from your linked accounts
Anonymous   |     |   Comment #11
bbug  Keep an eye on the rate.  They could drop it anytime