Umbrella Bank 3.40% Money Market

Good find by Goldbrick on the rate thread but found Umbrella Bank Thread is archived so figure will start a new one

Umbrella Bank

$1,000 min and Rate is guaranteed till 12/31/2007. Also has limited check writing

Nice rate...hard or soft pull?

dolmar said: Are you sure? Link

there web page only shows highest tier of $50,000 and over 5.10% no mention of the bonus or anything on there. This is for there account called "Pot of Gold" or is there another account or promo not listed on there main web page?

Use OP's link, that apply link passes the promo code 0701.

Can referrals function in conjunction with this link ?

Sorry I did not understand I had to goto another thread to find the link posted Goldbrick.

Incase anyone else needs the links http://www.umbrellabank.com/promotions/0701/

SuperMxyz said: Am I reading it correctly that the first $1k is stuck at the .60% apr tier? Why? If the "Daily Balance" is over $1000, the APY is 5.5%.

alchemize said: Nice rate...hard or soft pull?I've sent an email to customer service asking whether they do hard/soft pulls -- I'll post if/when they answer.

In the meantime, here are some other data points:

Umbrella Bank (a division of New South Federal Savings Bank)
FDIC info:
New South Federal Savings Bank
2000 Crestwood Blvd
Irondale,AL 35210

FDIC Certificate #: 32276
Date Established: 1/24/1985
Bank Charter Class: Savings Association
Date of Deposit Insurance: 2/26/1985
Primary Federal Regulator: Office of Thrift Supervision
Primary Internet Web Address: http://www.newsouthfederal.com:80/

External Transfers. Funds from any external transfer from your checking or money market account wth another financial institution to your UmbrellaBank.com account via our Online Banking System will not be available until the fifth business day after the day your external transfer is initiated. [Note: I was unable to determine if there is a limit on $ amount of transfers in/out.]

Their CD rates also look pretty good for these days: CD rates as of 4/23/07.

Other forum reported the fund take longer time to transfer. And the term say "Interest is not considered earned until posted."

So do anyone have experience how long it take umbrella to post the ACH transaction?

daregan said: How come you didn't post this in the APY sticky common area?

If you want it in the common area, feel free to do it yourself. I personally stay out of there so the format nazis don't accuse me of wrecking the list or deleting all their hard work.



Is this FDIC insured?

yes

scott1961 said: One thing I did find is Bankrate only gives them 2 stars, So I would definitely stay under $100k with them.Could be a good hedge account if rates suddenly start dropping

LOL great hedge if rates start to drop fast this bank will be first one to go under as like you said they are already rated 2 stars. And more than likely in trouble which is why they are offering a granteed rate of 5.5% APY = a rate of 5.38% which is pretty much what institutional cash equivalent rates are paying today as the range currently for cash equivalent insturments is between 5.38-5.65% depending on credit rating of the liquidity provider and underlying issuer. So once rates start to drop will this bank be able to afford thoses losses or will it be decleared insolvent?

For deposits under $100K who cares as you will not loose a dime but if rates do drop fast this bank might be shut down by FDIC so fast that your hedge might have been a worthless effort.

retire35 said: I don't see any guarantee that the rate will remain high.

Rather in the fine print it reads :

"The interest rate and APY may change after the account is opened. UmbrellaBank reserves the right to change the interest rate and APY at any time. Rates and terms are subject to change without notice"

This screams bait and switch.
In huge font: 5.50% APY* through 12/31/2007

If you prefer fine print:
The interest rate and APY may change after 12/31/2007. UmbrellaBank reserves the right to change the interest rate and APY at any time after the promotional period.

They are sure going out of there way to give themselves liability in a lawsuit if they really are planning a "bait and switch".


What it screams to me is that the lawyers made them put the standard boiler plate clause "change at any time" while they let the marketing people make an above and beyond promise.

retire35 said: I don't see any guarantee that the rate will remain high.

Rather in the fine print it reads :

"The interest rate and APY may change after the account is opened. UmbrellaBank reserves the right to change the interest rate and APY at any time. Rates and terms are subject to change without notice"

This screams bait and switch.You're reading the page with the "regular" rates. Follow the promo link and you'll see the guarantee.

If you already have a Pot O' Gold account, you are stuck at the old interest rates of 4.95%-5.10% tiered. Their CSR advised that existing customers can open a new account using the link from the webpage, but cannot fund it from money in the old account. She seemed surprised that I already knew about the promotion.

The procedure for closing an account is to write a check for the account balance. You need to call them and give the check number. If you close the account in the middle of a cycle, you loose interest that has not yet posted. So the best strategy is to get the account down to $1,000, wait for interest to post (for me its the 10th of the month), and then write the check to close the account.

One nice thing about Umbrella Bank is that if you mail them a check, interest starts to post on the day of deposit. So you can earn double interest which the check clears.

^^^^Nah, I realized just because I hung out with millionaires online didn't mean I was one. So I'm in a junk bond mutual fund yielding over 6% (with significant risk as well).

I still enjoy a good rate chase, but my money is all stocks and bonds now.

should be a hard pull
they start crediting interest when they receive your check (for those worried)

jimbocobb said: daneicy80 said: I'm in, it's basically an 8 month cd for 5.50% that you can add money to or withdraw from as needed. GREAT!!! This is better than any CD that is available now. How many MMA's actually will guarantee an interest rate, and for that long an amount of time? I'm willing to take the chance even though they are only rated 2 *'s because they are FDIC insured.

I still like my 15-month NFCU CD's for 6%, but most folks can't get membership there, and I like the fact that you can add/withdraw as needed between now and 12/31 and continue to get the guaranteed rate...I guess I'm in. Can you fund on-line or do you have to mail a check ?

incoming wires are free. use wamu

in case someone ask,UMBRELLA BANK routing number is 071974479.
address: UMBRELLA BANK, FSB 2000 CRESTWOOD BLVD BIRMINGHAM AL 35210-0000

jimbocobb said: So is everyone signing up ???

Not worth it as I already have Amboy Direct at 5.35%, I might lose money after I subtract the interest lost from transferring the money around.

Note: Amboy Direct only allows ACH to 1 checking account. So the money needs to be transferred out to the checking then transferred to Umbrella Bank.

So what will be the best strategy to transfer money to it from HSBC after promotional rate ends?

berkeleyman said: So what will be the best strategy to transfer money to it from HSBC after promotional rate ends?

how about making a check out from GMAC...

Current rate is 3.40% APY