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Mistake In Reward Checking List For Independent Bank Of Texas

elarh   |     |   43 posts since 2011

Above cap rate shows 1.03%; should be .8%

Ken Tumin
Ken Tumin   |     |   5,936 posts since 2009
Thanks. I was wondering where we were getting 1.03%. It turns out to be the lowest blended APY that's listed on the bank's Ultimate Checking page.

0.80% interest rate* on amount of balance over $15,000 (resulting in 1.03% – 2.58% APY depending on balance)

As it says in the small print, "The annual percentage yield for this tier will range from 1.03% to 2.58%, depending on the balance in the account." The larger the balance, the closer the blended APY gets to 0.80%.

This blended APY has always created some complications for our tables. The most accurate APY for us to show would be this blended APY for a selected balance. However, we felt this would create confusion. The APY that we show wouldn't match with what the banks show for these reward checking accounts. So we decided that we would list the interest rate for the higher tiers even though this would not be 100% accurate.

In summary, you are correct that we should be showing 0.80% as the second tier APY for consistency.