FirstFedDirect increased the yield on its Internet Advantage Savings Account from 5.01% to 5.17% APY today. To earn this APY requires a balance of at least $1K. There are no monthly fees for low balances. The savings account is like a typical online savings account. Accounts can be opened online or by mail. However, you must live outside of California to apply.
The bank also raised the CD rates. The current APYs for the 3-month, 6-month, 9-month and 12-month CDs are 5.26%, 5.51%, 5.60% and 5.67%. There's a $10K minimum deposit. The early withdrawal penalty is 3 months of interest for terms under 1 year. The 1-year CD has a 180-day interest penalty.
I first reported on this account last December when First Federal Bank of California first launched this online bank. The rates have remained competitive. However, there hasn't been any improvements. For example, my complaint in December was the lack of any email address or telephone number on the website. I still can't find this info.
First Federal Bank of California is FDIC insured. The FDIC entry only includes the main bank's web address and not FirstFedDirect's, so I can't prove that FirstFedDirect is part of First Federal Bank. The bank has a 4 out of 5 star rating at Bankrate.com for financial strength.