Hudson City Savings Bank is offering some fairly competitive rates on its online CDs and money market savings account. These include a 2.90% APY 12-month CD, a 2.65% APY 6-month CD and a 2.40% APY 3-month CD. Minimum deposit is $5,000. The savings account has a rate of 2.50% APY with a $2,500 minimum balance. The rate for balances of $10 to $2,500 is 1.50% APY. A $2 monthly fee applies to balances below $100. These rates are listed at the bank's internet accounts page as of 2/11/09.
I called the bank this morning and confirmed that these accounts can be opened online from any state. The application is provided by the Andera service which is common for online applications. Initial funding can be done by electronic ACH transfer.
According to the CSR, the bank started offering the internet accounts in early December. This might explain why these accounts don't seem to have the best online features. Here are a few of the money market savings account features that I was told during my conversation with the CSR:
- no bank-to-bank ACH transfer service
- accepts ACH transfers from another bank
- deposits can be also be made by mailing checks
- No check writing
- $100,000 ACH deposit limit, no limit for mailing in a check
- Rate locks when the application is submitted
- At maturity, ACH transfer or wire transfer are not options
- Rates typically updated on Fridays
Strong Financials
The rates are competitive but are not the best. However, one positive aspect of this bank is its strong financials. Hudson City Savings Bank is one of the few banks with internet accounts that seem to be in good financial shape. According to this Business Week article "Hudson City has avoided the worst of the mortgage crisis because of its conservative lending policies before the economic crisis hit." Their 4th quarter performance was a little below expectations, but they still had a profit of $0.25 per share. Their stock continues to be in the double digits.
Hudson City Savings Bank's ratings for safety and soundness also indicate strong financials: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. These ratings are based on 9/30/08 financial data.
Hudson City Savings Bank is based in New Jersey with branches in New Jersey, New York and Connecticut. The bank has been FDIC insured since 1934 (FDIC Certificate # 13074).
Internet Money Market Savings Rate History:
12/05/09: 1.40% APY
11/14/09: 1.50% APY
10/17/09: 1.60% APY
07/18/09: 1.75% APY
07/11/09: 1.85% APY
??/??/09: 2.00% APY
02/11/09: 2.50% APY
