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Venture Bank Direct Raises Online Savings Account Yield to 3.75%

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Update 10/03/08: The yield has increased to 3.80% APY.

Venture Bank Direct has raised its online savings account yield from 3.30% to 3.75% APY. I first reported on this new online savings account in this August 29th post. Refer to that post for all of the account details. It's a pretty typical online savings account with no minimum balance requirements. The application can be done all online with no documents to be mailed. Their ACH system is a little weak. They currently allow only one external link. I was told it's scheduled to be expanded to allow two links.

The bank must have realized that a new online bank needs very competitive rates to attract customers. A 3.30% yield is just too low. There are too many online banks with savings account yields of 3.50% and above (see my weekly rate summary). Even with a high rate there's always the concern that it's just a teaser rate to attract new customers. We've seen many new online banks offer competitive rates for the first 3 to 6 months and then become uncompetitive. Some examples that I can think of include AARP Financial Savings Center, AmTrustDirect, E-LOAN and EmigrantDirect. Any others come to mind?

Venture Bank is based in Washington State. It has been FDIC insured since 1979 (FDIC Certificate # 22868). This can be confirmed at this FDIC page. Note, only the main bank's URL is listed (venture-bank.com). I've contacted Venture Bank by using the contact information at this URL, and I've confirmed that venturebankdirect.com is operated by Venture Bank. The bank has $1.2 billion in assets and $917 million in deposits based on 6/30/08 data. The bank has a 2-star rating (below peer group) at Bankrate.com and a 3.5 star rating (good) at BauerFinancial based on 3/31/08 data.

Thanks to the readers who noted this rate change in the comments.

  Tags: savings account

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Comments
8 Comments.
Comment #1 by JCE (anonymous) posted on
JCE
As far as banks that had intro teaser rates for 3 to 6 months and then became uncompetitive, I don't think EmigrantDirect belongs in that category. I had a savings account with emigrantdirect, the interest rate was very good for 3 years before the rate became uncompetitive and I closed the account. I don't know why they didn't just raise the rate at emigrantdirect instead of creating the new dollarsavingsdirect. My experience with emigrantdirect was very good and I am considering opening a new account at dollarsavingsdirect now that the interest rate on my savingslink account at countrywide seems to be becoming uncompetitive.

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Comment #2 by Anonymous posted on
Anonymous
Also mentioned in the post was AmTrustDirect. Their e-Savings APY is 4.00% for balance tier $1-$99,999.99. I think that's pretty good.

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Comment #3 by tresho (anonymous) posted on
tresho
AmtrustDirect's e-savings is 4% for the first 90 days & is subject to change.
I was inspired by this post to open an account with Venture Bank on a Friday. The process was straightforward. I linked one of my checking accounts to the new Venture Bank account, the initial deposit from checking to Venture was done by Monday & the test deposit in the opposite direction was verified by Thursday (could have been sooner, but I didn't know I had to call Venture Customer Service to verify this).
The limit of one linked account through Venture is not a problem for me, I have accounts at Countrywide & GMAC which allow 5 linked accounts per each. I am in the process of linking these accounts to my Venture account.

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Comment #4 by Anonymous posted on
Anonymous
Venture Bank Direct has raised their APY again, it is now 3.80%

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Comment #5 by Anonymous posted on
Anonymous
Great to see that Venture Bank Direct is still going strong with their 3.8% APY. Best part for me, was having my account up and earning interest in 1 day.

I'm looking forward to exploring the other online services they offer.

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Comment #6 by cjdtech (anonymous) posted on
cjdtech
Very fast ACH (i.e. next day).

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Comment #7 by Anonymous posted on
Anonymous
Venture Bank Direct is in the process of launching their online checking account. They are currently offering 3.6% APY on their online savings accounts.

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Comment #8 by Bernard (anonymous) posted on
Bernard
Found a great, clean, fast site that shows the best savings rates. Check it out: http://www.ratebrain.com/savings.php

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