No-Minimum Online Savings Account Hits 4.75%

RateEdge.com just increased the yield on its no-minimum online savings account from 4.50% to 4.75% APY. It was just about a month ago when it raised the APY to 4.50%. The only problem with RateEdge.com is that it's a division of Sunmark Federal Credit Union which has a field of membership that's primarily limited to those who live in areas of New York State.

Unlike ING Direct and HSBC, this isn't a promotional rate. RateEdge.com has been consistently offering high interest rates for several months. I first noticed RateEdge.com back in mid November when it was offering an APY of 4.25%.

One note, RateEdge.com's savings account isn't exactly a no-minimum savings account. It does require a $5 deposit to open and to keep it open. For all practical purposes, I consider this a no-minimum account.

I'll ask the same question that I did last month: Why don't more credit unions open online branches like RateEdge.com? I've emailed my credit union, and it did spark the interest of a VP. The more people requesting this, the better chance more credit unions will pursue it which means more competition and better rates for us.

Thanks to the reader who left a comment about this rate update!