Short-term money held for later investments or emergency funds pay paltry returns. It might be expected since these investment vehicles are not long-term. However, money market and checking accounts can do better than a fraction of a percent in interest payments large banks are offering.
Over the past year my most popular posts involved investing short-term funds. I paid lip service to High Interest Savings Accounts Few Use and Unique Savings Accounts Few Know About. In each case I was soundly trashed for focusing on wealthy people (which is a lie since all the accounts I listed can be used by people of any wealth level) and avoiding the one checking and savings account tailor-made for people in the backwoods of Wealthy Accountantville.
Let me introduce you to Redneck Bank; a bank folks from the backwoods of Nowhere, Wisconsin and the back streets of New York City alike can enjoy. And if you stick around to the end I’ll show you a debit card paying up to 2.5% cash back. Mix these banking vehicles together for an acceptable return is something even backwoods folks, like me, find mighty tempting.
Mega Money Market Account
Y’all know I’m going to have a hard time not drifting into backwoods talk. I’ll do my best to be professional.
Interest rates are subject to change, of course, but as of this writing my brothers at Redneck Bank are paying a stiff 1.75% on their Mega Money Market Account on balances up to $50,000.
Don’t get yer knickers in a bundle! Redneck Bank is fer normal folks, too. They pay that awesome interest rate on balances up to $50,000. There is no minimum balance and you only need 500 bucks to open a darn account. Even normal folks in the boondocks have that much laying around, probably in the sofa cushion.
If all you are looking for is interest you are leaving some of the best features of Redneck Bank on the ground. Backwoods folks are more frugal than that, if you didn’t already know.
Mobile deposits make it easy to work with my Redneck buddies. Take a picture of checks received and they are automatically deposited into your account.
An underused feature is Online Bill Pay. Your Redneck money market account offers 10 free bill pay transactions per month. This saves time and postage. Smart rednecks automate their life whenever and wherever possible. That is just good money management.
You can read all the sun-baked details here. (Note: Redneck Bank is not an affiliate or related to the author in any way.)
Redneck Rewards Checking Account
For smaller sums of money I think the Redneck Bank checking account is a better offer. Interest accumulates at 2.25% currently on up to (that is up to) $10,000. That is very competitive and comes with plenty of additional valuable features.
Mobile deposits using a secure app make all Redneck products easy to use. Your Redneck Rewards Checking Account also comes with 10 free bill pay transactions. No minimum balance required, but ya need 500 bucks to open the account. Check the sofa.
For kind readers who enjoy traveling, up to $25 in foreign ATM fees are refunded each month.
There is one small catch to the checking account, however. (What did you expect with a checking account paying 2.25% on up to 10 grand?) You need to make 10 or more debit card transactions (online or in the real world) using your Redneck checking account each month to qualify for the high interest rewards. If you make fewer debit card transactions you still earn .50% (almost like an account at a big bank).
You can read all the details about the Redneck Rewards Checking Account here.
Facts and Circumstances
Redneck Bank might be the perfect bank for you. Their products offer excellent rates of interest for emergency and short-term funds. I recommend reading the two previous posts I published using the links above for more high interest options.
No one product fits everyone, however, and many people will find multiple investment vehicles best for them. (You are not limited to one account at one bank, if that needs saying.) The previous articles published, listed at the opening of this post, have offers for much larger amounts for readers dealing with larger sums.
It is important to review your personal financial situation. Something as easy and fun as Redneck Bank might cover most or all your banking needs. Then again, as life evolves, it is possible new financial challenges will arise. This is when it is good to come armed with multiple tools to get the job done. It isn’t a crime to change banks when facts dictate such a move.
The interest rate paid is only part of the solution. Yes, earning reasonable interest is the most difficult problem to solve and why you are probably here. But is can be done, as this and previous articles published on this blog, indicate. The real value in these high-interest accounts extends to services too. Online banking is convenient, but free bill pay saves time and postage. Be sure to review many banking options. If you have more than 10 bills each month, it might make sense to have more than one bank. The fine print is your friend in this instance.
Awesome Deal I Promised
I promised an awesome deal if you read to the end and I meant it. I haven’t seen this one promoted much (or I just live in a secluded backwoods world) so most of you may not be aware of this offer.
Let me tease first. How many of you would like a credit card paying back 2.5% cash back with an up-front cash bonus? Oh, I see a lot of hands. Some credit cards offer more, but 2.5% cash back with a bonus is still pretty good.
Now, how would you like a debit card that offered the same? With an up-front bonus? Thought so.
Debit cards are notorious for paying small or no cash-back. Dave Ramsey fans and those with an allergic reaction to debt don’t want to use credit cards so they miss out on the juicy rewards. These are cash and carry people that will only go as far as a debit card. I get it.
PayPal recently sent me an offer. To be fair, this might only apply to business accounts, but I see nothing that disallows you from opening a business versus a personal account.
The landing page says PayPal pays 1% cash back, but PayPal gave me a $100 cash back reward for spending $1,000 in December and $25 for every $1,000 of spending. This means with a small amount of planning I can get close to 2.5% cash back on normal spending (no crazy spending for a reward, as if I have to mention this) on my debit card before the bonus reward.
The money comes from my checking account (PayPal automatically deducts the payment); I don’t keep any money on deposit at PayPal, thought that is allowed, as well.
PayPal has other options than the $25 per thousand in spending, but I think that offer is the best.
This is also a new product for PayPal (I think). I have had a PayPal account for years for my tax office. PayPal decided they were sending a debit card for the account regardless. (I opted out of the debit card feature in the past.) To sweeten the pot they offered cash. What can I say? The accountant in me couldn’t hold back.
The PayPal offer might be for a limited time. I still wanted to get this in your hands as soon as possible so you can take advantage of the offer if possible.
As always, kind readers, use common sense. There are numerous banking options out there. Mix and match those that serve you best. It used to be so easy. Just go to the local bank and open an account. Today there are more moving parts, but that works to your advantage if you are willing to invest a small amount of time.
Also, as a reminder, you are not wedded to a bank. If the terms change, you can always change banks. Some offers are meant to get folks in the door with the hopes they are too lazy to leave (or notice) once the offer ends. Don’t be lazy! You work hard for your money. The banks are making money just fine. You take care of you!
Check out Redneck Bank. Maybe add it to your list of financial options. There is a bit of fun involved, too. And life should be filled with amusing moments.
Look into the PayPal offer, as well. It might be limited to current accounts or some other crazy thing. But it might be something of value to you. Getting north of 2% cash back using a debit card is the best this crazy accountant has seen to date.
Be sure to share high-interest accounts you use (or know of) in the comments section below. Worthy Financial (in the More Wealth Building Resources section below) pays 5%, but is an affiliate of this blog and is not a bank.
I hope this short post kept your interest. (Yes, one last bit of humor before leaving you today.)
More Wealth Building Resources
Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?
Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.
QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.
A cost segregation study can reduce taxes $100,000 for income property owners. Here is my review of how cost segregation studies work and how to get one yourself.
Worthy Financial offers a flat 5% on their investment. You can read my review here.
Saturday 25th of January 2020
Oops. I was supposed to say Checking account at Memory Bank.
Saturday 25th of January 2020
I lucked into getting a First Foundation Bank account that gives me and other early adopters to their savings account 2.2% APY if I keep over $1,000 in the account while new people who get the account get 2.0% APY. Savings account at Memory Bank gives 0.9% APY with no requirements or debit card transactions. Memory Bank even sends statements in the mail for FREE! First comment on this website.
Monday 13th of January 2020
I've been using Redneck Bank's Mega Market for my emergency funding for almost 3 years. Never had a problem moving money in or out. Been great rate for a while now.
Monday 13th of January 2020
Alliant Credit Union Savings 1.65% Checking 0.45% VISA Signature; 3.0% cash back in first year and 2.5% cash back thereafter; $99 annual fee waived first year