Recent Bank Findings: Redneck Bank 3.10% APY and Danvers Bank 3.00% APY
Stocks are down (another 300-point plunge of the Dow today closing below 7,000 for the first time in 13 years) and savings account interest rates are declining too. Are you wondering where to put your money these days? Treasuries are safe, but you won’t get much from buying bonds/bills unless safety is your absolute concern. After reviewing some short-term investment options, online savings accounts still make an attractive choice. While rates of most bank accounts are in the neighborhood of 2.00% (check out my savings account interest rate history table for latest rates), you can still find a few banks offer 3.00+% yield, including two that I recently added to the list.
Redneck Bank Money Market Account 3.10% APY
Redneck Bank is a subsidiary of Bank of The Wichitas, which is headquartered in Snyder, Oklahoma. Right now, Redneck Bank is offering 3.10% APY for its Mega Money Market Account with $1 minimum deposit requirement and no monthly account maintenance fee. With this account, you will also get:
- Free Redneck Bank Visa CheckCard
- Free online banking
- 6 free withdrawals per month ($5 per withdrawal after that)
which are all pretty standard. In addition to the rate, there are something else at this bank that are different from others: fund transfers. According to the FAQ, you can only make bank-to-bank fund transfer 30 days the account is opened and the maximum you can transfer is $1,500 each time (you will have to call the bank to request an increase of the limit). Pretty weird requirements, aren’t they? Other additional information of the bank includes:
- Bank of The Wichitas has been a member of the FDIC since January 1, 1934 (certificate number 4198);
- Bankrate.com’s Safe & Sound ratings rank Bank of The Wichitas 4 stars out of 5;
- Redneck Bank’s routing number is 103113182.
Danvers Bank Online Savings Account 3.00% APY
Danvers Bank is a small bank located in Danvers, MA. According to the FDIC, the bank has 16 branch offices in MA and it has been a member of the FDIC since September 6, 1985 (FDIC certificate number 90185). The bank’s online savings account now pays 3.00% APY with $1 minimum and no monthly fee. Danvers Bank also has a 4-star Safe & Sound rating and its routing number is 211371162.
If you look at my interest rate table, you will notice that right now top rates are only available at small banks. All popular online banks are racing to reduce their rates, some multiple times in a month. I was particularly disappointed when Dollar Savings Direct, where we put almost all our cash, lowered the yield of their online savings account to 2.65%, and I was thinking moving my money to somewhere else. However, after going through all the banks that I have an account with (HSBC Direct, ING Direct, FNBO Direct, IGoBanking, Capital One), I gave up the idea of moving because none of them beats Dollar Savings Direct. Though I don’t like what I get, there just isn’t an attractive alternative out there.
While the two banks I listed above have better rates for now, I am not convinced these smaller players can hold their lines longer than the big guys in the field after seeing the changes happened in the past two months. So instead of getting a new account, I decide to stay with my current ones. There isn’t much rate chasing you can do in this environment.
These days, it’s hard to find anything that’s high-yield, except Lending Club
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