Dedicated to Deposits: Deals, Data, and Discussion
Bank of Internet USA0.61%--High Yield Savings
Accounts mentioned in this post. Rates as of August 20, 2014

Bank of Internet's High Yield Savings Account - New Higher Yield


Bank of Internet USA

Update 5/04/10: The High Yield Savings Account rate has fallen from 1.30% APY to 1.10% APY. Refer to the bottom of the post for the rate history.

Online banks have begun to lower their rates in response to the Fed's historic rate cut. Bank of Internet USA is one of these. It lowered the yields by 20 basis points on both the Money Market Savings Account (down to 3.26% APY) and the High Interest Checking (down to 3.20% APY). However, the High Yield Savings Account now pays 3.51% APY as of 12/17/08.

By reviewing the rate history of this account, it appears BofI raised the yield on December 10th from 2.00% to 3.51% APY. This used to be called Regular Savings Account. Like other online banks (Capital One and GMAC), BofI appears to have decided to offer the highest rates on its savings account rather than on its money market account. The only difference between these two accounts appears to be that the savings account does not have check writing privileges. The higher rate for the savings account makes sense since the lack of checks should make the account a little less costly for the bank.

Here's a summary of the High Yield Savings Account features:

  • 3.51% APY on all balances as of 12/17/08
  • $100 min. initial deposit required
  • No monthly maintenance fee
  • No minimum daily balance required
  • ATM card available
  • Interest is compounded daily and credited monthly
  • No ACH transfer service available
  • Accepts ACH transfers initiated from another bank

Note the lack of the electronic ACH bank-to-bank transfer feature. I called yesterday to see if they might have added this. Unfortunately, they have not.

For more info on Bank of Internet and its checking and money market account, please refer to my July 2008 BofI account reviews.

BofI's ratings for soundness have remained the same since my July report: 3 stars (performing) at and 4 star rating (excellent) at BauerFinancial. These ratings are based on 9/30/08 data.

The bank has been FDIC insured since 2000 (FDIC Certificate # 35546).

Rate History:
05/04/10: 1.10% APY
04/09/10: 1.30% APY
03/24/10: 1.40% APY
02/10/10: 1.50% APY
??/??/10: 1.60% APY
11/16/09: 1.70% APY
08/04/09: 1.75% APY
07/29/09: 1.81% APY
05/01/09: 2.06% APY
03/04/09: 2.00% APY
02/24/09: 2.50% APY
02/05/09: 3.10% APY
12/17/08: 3.51% APY

  Tags: Bank of Internet USA, savings account

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Comment #1 by Anonymous posted on
I have been a BOI customer for about 5 years. I maintain both a Senior Checking & Money Market Account.

I tried yesterday to open one of the new High Yield Savings account and found (after a call to Customer Service) that I have to go ahead and act like a new customer and fill out a new account application and start the process all over again. This means a new snail-mail application to sign along with disclosures, etc. and need to be returned before they do the ACH debit to open the account.

There appears to be no expedited process for existing customers to add another account. I would assume they will again run a credit report on me.

I have also tried over the last 12 months to periodically bug them about the status of customers being able to directly generate ACH debits/credits from their website and they always say "it is coming, be patient".

This bank is OK, but they seem to NOT get it that existing customers (long-term) are safer and less expensive to service than new customer acquisitions. They are OK, but I always keep the majority of my funds at other places due to promo rates, local brick & morter branch presence, etc.

This Internet-only bank needs to wake up and smell the frustration and reward their existing customers with less problems.

Just my humble opinion.

OC Steve

Comment #2 by Anonymous posted on
How ironic is that? You have to open an account by mail at an Internet based bank? And no ACH transfer capability? Several other banks don't have that feature either and they say that they are working to add it on soon. Maybe they should change their name to Bank of the Internet-eventually?

Comment #3 by Anonymous posted on
No ACH transfer service available?

I go to Banks that do, forget these slow guys.

Comment #4 by Anonymous posted on
I have a checking account with them and occasionally use their bill pay system.
It is so slow then it takes about 10 business days to reach the final destination.
I could walk 1000 miles to the place to pay the bill then waiting for the bank to pay it for you.
They use the USPS to send checks even if the payee is across the street. They process the bill pay once a week and rely on snail mail for delivery. Once they receive the sent check back from the payee which can be another week, then they will proceed to release the funds.
Frustration is mild form of describing the bill pay process.

Without an ACH, I don't use this bank anymore for anything but to park few thousands of dollars now and than.

Comment #5 by Anonymous posted on
Snail mail for the bill paying service? Sheesh. They will have to change their name to Bank of the US Postal Service instead.

Comment #6 by indexfundfan (anonymous) posted on
Do they do a hard pull on the credit report on account opening?

Comment #7 by Anonymous posted on
The yield just went down to 3.10%.

Comment #8 by Anonymous posted on
As others have said, this bank has a long way to go before they can claim to be a true internet bank. Their web site is very basic.

Having said that, so far the customer service has been good. They answer their emails. You can reach a live customer rep without a long wait on hold. They place no dollar limits (except for 6 per month) on ACH withdraws. You can make unlimited ACH deposits. Both deposits (except initial) and withdrawals have to be initiate by an external account.

Comment #9 by Anonymous posted on
down to 2.80%

Comment #10 by Anonymous posted on
Trying to open an account with BofI was a slow & frustrating process, I finally told them to stuff it. After the 1st of the new year, I opened, verified, funded and received a month of interest at 6 other high yield accounts, before these jokers could open an account. BofI should be renamed Bank of Snail Mail, they required two separate snail mail responses before opening the account.

Comment #11 by Anonymous posted on
I wish I had read this blog before I stupidly opened an account with BOI. The whole process has been an unending hassle. First, when you start filling out your online application you have no idea that you'll eventually be getting the opening paperwork by snail mail, and having to mail it back. That is ridiculous! Bank of INTERNET, huh?

Second, the lack of ACH is such a huge issue that it should be disclosed by the bank before you open an account. I only learned of it today, when I first logged into my account (which by the way, took weeks because of the snail mail). I didn't see a way to do transfers. This can't be right, I thought. So I called them. I actually felt sorry for the customer service person. I get the impression she deals with irate new customers all day long.

When I found out there was no ACH, I said I wanted to close the account. Turns out there is a $25 fee for closing within 90 days! (I apparently missed that in the small print.) Believe me, when 90 days is up, I will no longer be a BOI customer. It's already on my calendar.

BOI really has managed to make me furious. I had no idea what a mess I was getting into when I started the online application!

Comment #12 by Anonymous posted on
To Anonymous, at 1:26 PM, March 03, 2009,

Sorry to burst your bubble, but I really have no sympathy for idiots like you who don't take the time to research into banks before blindly opening accounts. Had you read the disclosure forms that you were suppose to before signing on the dotted line, you would have known everything you're ****ing about here.

BofI is an awesome bank--but their rates have been declining like all other banks. We've had a BofI Senior Checking since 2002. They've been great! Absolutely love them. I do wish their rates were higher, but the bank itself is great. They don't want idiots like you infesting their customer base.

Comment #13 by Anonymous posted on
My BOI experience has been uniformly frustrating, disappointing and simply unprofessional.
They are an "Internet Bank" in name only, seemingly for promotional purposes.
BOI aka "Bank Of Stone Age"
They are slow, inefficient and severely technologically challenged.


Comment #14 by Anonymous posted on
This "Bank Of Internet" is so poorly run that I would think it is a front for a money-laundering operation.
They are slow, uninformed and poorly equipped to compete in the 21st century.
I have opened a savings account, and immediately withdrew all my funds due to BOI's primitive and dishonest practices.