Update 10/14/24: Rates dropped to 4.40% APY on up to $100,000 for Mega Money Market and 4.65% APY on up to $15,000 for Rewards Checking (debit card usage and other requirements apply). Details below.
Update 7/9/24: Rates dropped to 4.75% APY on up to $100,000 for Mega Money Market and 5.00% APY on up to $15,000 for Rewards Checking (debit card usage and other requirements apply). Details below.
All America Bank and Redneck Bank are sister internet banks that offer the same types of accounts (with different marketing shtick). Looking back in my archives, I actually opened an account with them way back in 2009 (later closed), as they offer a simple product lineup and have intermittent periods where they are very competitive with interest rates. (There are also some periods where they choose to lag.) Looks like they are looking to attract deposits again, recently raising both their interest rates and their balance caps.
Mega Money Market
- 4.75% APY on up to $100,000. Amounts over $100,000 earn 0.50% APY.
- No debit card transactions required.
- $500 minimum to open an account. No ongoing minimum balance requirement.
- Must agree to receive online statements only.
- Limit of one Mega Money market account allowed per individual. (I believe you can have one account at each bank, though.)
- Technically a money market checking account which means it includes a debit card (you can pay for checks too) but is still limited to six withdrawals per month. This limits its functionality to more like a savings account.
Rewards Checking
- 5.00% APY on up to $15,000. Amounts over $15,000 earn 0.50% APY.
- 10 debit card transactions required per monthly statement cycle. Monthly statement cycle ends on the 20th of each month. If the 20th falls on a Saturday, the cycle will end on Friday the 19th. If the 20th falls on a Sunday, the cycle will end on Monday the 21st. ATM and ACH transfers don’t count.
- $500 minimum to open an account online. No ongoing minimum balance requirement.
- Must agree to receive online statements only.
- Limit of two (2) Rewards Checking Accounts allowed per individual. (I believe you can have two accounts at each bank.)
- A full-featured checking account with online billpay, ATM rebates (up to $25 per month), and mobile check deposit abilities.
Note that both are under the FDIC insurance certificate of All America Bank (#20093), so you should be careful not to exceed the $250,000 limit across both banks (a reminder that the $250k limit is per depositor, per insured bank, for each account ownership category).
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Rewards Checking. On $15,000 calculation–do not come near this amount. But used for computational convenience. 1.00% premium over 3.25% in bank savings accounts beginning to be offered as just deposit the funds once and no further effort. $150 for use of card 120 times per year–watch that midmonth deadline! At a 25% tax rate of federal+state, comes to less than a buck net for each use. OK only if you already make small debit purchases 3 times a week, maybe bus ride where credit cards are not accepted. Otherwise you are working for the bank for pennies.
Agreed… the checking account is not attractive to me at all, for those same reasons. If you use that debit card for 120 transactions of $10 each instead of a credit card earning 2% rewards. you’ve also lost $24 in rewards.. but mainly it’s the hassle of remembering to use it 10x/mo that’s just not worth it. (As you said, frequent transportation charges could make sense.)
Perhaps someone who wants just one account, has under $15k, and is opposed to credit cards, it would be a very nice bonus of up to $637/year (before taxes and until they change their rates).
The 4% on savings with no hoops is certainly appealing, though. On a $75k balance, it would earn $562/year more than SoFi’s 3.25%.
Is it a teaser rate. Do you think they will lower the rate within 6 months?
Based on their history, they go through periods where they are quite competitive, and then long periods where they lag behind. So it’s hard to tell how long it will last, but it won’t be forever. I personally am not re-opening my account with them as I have no need to rate chase currently. I am locked into an Ally deposit bonus, SoFi deposit bonus (ends tomorrow), and HM Bradley is still giving me 4% APY until March 31st. I don’t want to bother opening a new account (with no bonus) and find them lagging in 3 months anyway.
I believe (hopefully) that between now and March 31st (HM Bradley 4% Party Period), we’ll see some other banks come along offering better than 4 or 4.25%.
I’m maxed on my deposits right now with HM Bradley. Hoping to see those higher interest rates from other offers! Hopefully HM Bradley keeps raising rates as the market gets more competitive!
Updated post to reflect that they have raised the balance cap on the money market from $75k to $100k as well.