Update 4/26/08: Due to the acquisition of Stockmans Bank by PremierWest Bank, the internet-only division NewBank is being closed. This explains the very low rates that have recently been offered. Please see NewBank's website for more details.
Stockmans Bank has just started a new internet bank called NewBank (they probably regret the name similarity to NetBank). The bank offers an online checking account, savings account and online CDs. They currently have a promotion for opening their checking account. I called the bank today for additional details. Below is a summary of the bonus and this checking account. The lines noted with CSR are based on the info I received from the call. The customer service rep wasn't too experienced, so be sure to check for yourself on these features.
- $50 bonus with an opening deposit of $2,500
- $2,500 must be maintained for 90 days
- valid for accounts opened before 12/31/07
- Checking account pays 3.50% APY on all balances
- No monthly service charges (CSR)
- No hard credit pull (CSR)
- Paper checks allowed (CSR)
- If ordered through them, paper check orders cost $15 and up (CSR)
- VISA check card available (CSR)
- Free online bill pay
- Can be funded by an electronic funds transfer - ACH
- ACH system available for future electronic deposits or withdrawals (CSR)
From their rate table, you can see that their rates aren't the best. The 3.50% checking is comparable to the low tier offered by ING Direct, but their savings account yield is even below the yield of ING's Orange Savings Account. The CD rate of 5.25% APY for the 12 and 18 month terms is competitive.
I did confirm with Stockmans Bank that www.NewBank.com is their new internet-only division. These accounts at NewBank will be FDIC insured through Stockmans Bank (FDIC Certificate # 33339). Stockmans Bank is based in Elk Grove, California. Both Bankrate.com and BauerFinancial give this bank their top rating of 5 out of 5 stars based on 6/30/07 data.
Thanks to the reader who emailed me info on this bank.
Update 10/29/07: NewBank changed the terms of the promo. It now requires you to maintain $2.5K for 90 days rather than just $1K.