bank rates

Colorful Trio Of Online Banks Come Out Of Merger With Lower Rates For New Savers

Three online banks made a splash during the recession with clever marketing and hefty returns on rewards checking and money market accounts.

They caught savers’ attention with patriotic pleas for money and rural humor. There isn’t another bank in the country where customers log in to their accounts by clicking on an outhouse. These little charmers were:

  • Redneck Bank, the online division of Bank of the Wichitas;
  • Evantage Bank, the online division of Southwest State Bank; and
  • AmericaNet Bank, the online division of All America Bank.

All were owned by the Huckabays, an Oklahoma banking family with roots going back to 1927.

All were open to savers nationwide and, during their heyday back in 2009, paid more than 3.00% APY on MMAs and 5.00% APY on rewards checking accounts.

But now these small banks, and their online divisions, are being rolled up into a single bank and website.

After this week’s merger, only All America Bank and the Redneck Bank website remain.

Over the years, the rates at the three online banks declined, yet they continued to offer one of the best nationally available rates on MMAs, paying 0.90% APY on balances to $35,000.

Customers who had an existing MMA with one of the banks are grandfathered in and continue to earn 0.90% APY, according to an Evantage customer service representative.

But rates for new savers have been slashed.

Now the best you can earn is 0.30% APY on a Super Saver MMA, and that’s for balances of $100,000 or more. Under the tiered system, the lowest rate is 0.15% APY on balances from $100 to $2,499.

With these rates, it’s not worth your trouble to bank with All America Bank when several online banks continue to pay 1.00% APY or more on the best nationally available savings and money market accounts.

All America’s Ultimate Rewards checking account isn’t quite so bleak, paying 1.50% APY on balances to $10,000 if you make at least 10 debit card purchases in a month and receive eStatements.

But where’s the appeal when top savings accounts are paying above 1.00% APY, and you don’t have to jump through any hoops to earn their best rates?

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