First No-Minimum Savings Account to Hit 4.50%

EmigrantDirect won't be the first with a no-minimum savings account with a rate of 4.50% (assuming it is on the verge of a rate hike to 4.50%). The little known RateEdge.com takes that honor. The rate on its Edge Savings Account went from 4.25% to 4.50% APY this week. I first noticed this savings account back in mid November when it was at 4.25%.

This savings account is just like those at EmigrantDirect, HSBC or ING Direct. It's an online savings account that links to your checking account and has no minimum balance requirements (There is a $5 minimum deposit requirement but I consider this essentially a no-minimum account.)

The only problem with RateEdge.com is that it's a credit union with a field of membership that's primarily restricted to areas of New York State.

RateEdge.com is a division of Sunmark Federal Credit Union. Sunmark decided to open this online-only financial entity to offer high yield savings products to its members. My question is why don't more credit unions do the same? I've already emailed my credit union about this. My email got the interest of a VP. If you belong to a credit union, I recommend emailing them a link to RateEdge.com and requesting that they start a similar online-only division with a high yield savings account. With credit unions' non-profit and tax-favorable status, they should be able to beat the banks on interest rates or at least provide more competition.