Dedicated to Deposits: Deals, Data, and Discussion

5.35% No-Min Online Savings Account


RateEdge just increased the rate on its online savings account from 5.25% to 5.35% APY. This account only requires $5 to open and has no minimum requirement to earn interest. The only problem with RateEdge is that it's a division of Sunmark Federal Credit Union which has a limitied field of membership. For those eligible to join, it's a great deal.

RateEdge was launched around September of 2005 and it has always maintained very competitive rates. It had maintained rates 25 basis points above the Fed funds rate until last June when the Fed made its last rate hike. RateEdge just recently ended a $50 sign-up bonus that had been available during the fourth quarter of 2006.

The field of membership is primarily limited to those who live in parts of New York State. To open an account at, you have to live, work, worship, own a business, volunteer or attend school in one of the following New York counties: Albany, Montgomery, Rensselaer, Saratoga, Schenectady and Schoharie. You can also be eligible if you have an immediate family member who meets the above criteria (even if they're not already a member).

Push for Online Savings Accounts from Your Own Credit Union

There's no reason why other credit unions can't offer similar online savings accounts. They may not all be as competitive as this, but by applying the same online business model, credit unions should be able to give the online banks a run for their money. Another example of a credit union doing this is Beehive Credit Union of Utah. It's currently offering an online savings account with a rate of 5.25% (see post).

I've contacted my credit unions about offering this type of online savings account. I'm not sure if they're seeing the demand for this. Many still prefer visiting the branch. So if you want the high yield of an online savings account, be sure to let your credit unions know.

Thanks to the reader who mentioned this update at RateEdge.

Comment #1 by Anonymous posted on
I found a VERY distant relative in the covered area. That relative does not have a Sunmark account of any sort. I still got an account with RateEdge. RateEdge also gives you direct deposit money on the true day or arrival, rather than on the electronically directed day of availability. That gives me two extra days of interest on every direct deposit.

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Glad to read you were able to join. Did you have to give your relative's name and address in the application?

That extra two days of interest seems to be another nice perk. I sure wish more credit unions would create an online division like this.

Do they make it easy to link to other accounts? with online linking and no limits to the number of links?

Comment #3 by Anonymous posted on
Sorry for my delay in response Banking guy.

When I signed up, I gave my relatives name, but no phone number, address, or any other ID information.

I think the two extra days of money access and interest is huge. My payroll is direct deposited into my main bank, with allotments going to 5 or six different places. There have been others in the past, but this is the only place now that I'm aware of that gives you the money in real time. So I get the money every other Tuesday at Rateedge, and Thursday everywhere else.

The linking to other accounts is pretty standard. You can have multiple links... they use the same interface as PresidentialBank.

Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info!

Comment #5 by Anonymous posted on
Banking Guy... has increased its rate to a leading 5.5%! WOW, that's a great rate for a savings account.

I am sure we all have a relative who lives, worships, works, or goes to school in NY!