In the heated war of saving rates, VirtualBank raised the bar again. This time, VirtualBank is paying 2.60% APY at its eMoney Market account.
Mind you, VirtualBank now adopts a reverse tiered model when it comes to interest rate. Take a look at its rate sheet: 2.60% APY only applies to the first $10,000 in the account; anything above that only fetches 2.30% APY (which is still good enough).
If you follow Bankrate's Moeny Market Rate Scorecard, you can see VirtualBank is now steps ahead; the nearest competitor is Zions Bank, which offers 2.43% APY right now with a minimal deposit of $1,000. Just hold your breath and expect many to soon follow suit by raising interest rates to the next level.
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[2/28/05 Update: Both VirtualBank and ING Direct have raised the APY to 2.60%]
(This post is part of PFBlog Product Review series. Check out more reviews here.)