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New Internet Bank - NewBank - $50 Checking Account Bonus - 5.25% 18-Month CD

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NewBank
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.
  Tags: CD rates, NewBank, checking account

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Comments
8 comments.
Comment #1 by Anonymous posted on
Anonymous
2 question banking guy?

1. Is their check card free?
2. Will be charged for checks by default once applied online (as is the case with Chase)?

Thanks!

1
Comment #2 by Anonymous posted on
Anonymous
Does anyone know what the minimum amount is for the 12 month CD? I can't seem to find it on their website. They definitely need a better FAQ section...

1
Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
Anonymous #1, I sent an email to them which included your questions. Hopefully, the CSR will be more knowledgeable than the one I spoke with on the phone.

Anonymous #2, you're right, their FAQ is inadequate. I was able to find more details in their truth-in-savings. It states the CD minimum is $5,000. Also, the grace period at maturity is 10 days.

1
Comment #4 by Anonymous posted on
Anonymous
To receive the $50 bonus to open a checking account the minimum average daily balance must be $2,500 - not $1,000 as previously stated. Perhaps they raised this in response to too many people making the initial deposit and then immediately taking most of it back out. Let's have some integrity, people.

1
Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. I've updated the post.

1
Comment #6 by Caro (anonymous) posted on
Caro
I opened a 12 Month CD with NewBank last night. I didn't realize it when I went through the application process but you don't have the option of having your interest transfered monthly - whether it's via check or ACH transfer.

I was able to cancel the application and stop the transfer of funds from my designated checking account. The rep that I spoke with was really nice in helping me out but I think the fact that you have the leave the interest to compound until maturity needs to be stated somewhere in the disclosures. Or did I miss something?

Also - the contact phone number that is listed on the website is only good for login issues. Any other problems or concerns must be directed to the main branch, which is a separate phone number.

1
Comment #7 by Anonymous posted on
Anonymous
Any update on their check card fees?

1
Comment #8 by Certificate of Deposit Rates (anonymous) posted on
Certificate of Deposit Rates
NewBank is now a part of PremierWest Bank. PremierWest Bank took over Stockmans Bank.

1