5% No-Minimum Savings Account (New York CU)

The yield on RateEdge.com's no-minimum online savings account reached 5.00% APY yesterday. RateEdge.com has consistently maintained a yield higher than the online savings accounts offered by the banks. Unfortunately, RateEdge.com is a division of Sunmark FCU which has a field of membership that's primarily limited to those who live in areas of New York State.

RateEdge       RateEdge   Emigrant     HSBC
Rate Change    APY        Direct APY   APY
Apr 05         5.00%      4.50%        4.80%
Feb 09         4.75%      4.25%        4.80%
Jan 07         4.50%      4.00%        4.25%
Nov 14         4.25%      4.00%        4.00%

Note, RateEdge.com was 4.25% before November 14th. That was the date when I first came across RateEdte.com. Refer to my post last February for more info on RateEdge.com. For the commenter who left a note about this rate update, Thanks!

We Need More Online Savings Accounts from Credit Unions!

I'm still hoping more credit unions will pursue online divisions like RateEdge.com. I've sent emails to my credit unions about RateEdge.com and asked them to look into something similar. I recommend that you do the same. Online savings accounts have done well for banks and customers. There's no reason why they can't be run even better by credit unions. Many credit unions should be able to run online savings accounts that can be comparable to RateEdge.com with rates 0.25% to 0.50% higher than the best online savings accounts from banks.