Update 3/16/2010: The rate has fallen to 1.40% APY. Refer to the bottom for the rate history.
Newtown Savings Bank is offering an online savings account called U-Sweep. As of 5/21/09, the rate is 2.30% APY on all balances. It has no minimum balance requirements and no monthly fees. It also has an ACH transfer service for electronic deposits and withdrawals. One downside is that you're required to mail or fax in application forms.
Update 6/10/09: When I first posted on this the CSR stated that this account was limited to the Connecticut area. Perhaps since the account was so new, the CSR wasn't properly informed. I sent an email yesterday asking again, and this time, I was told it is available nationwide.
They have a decent FAQ page with several account details. Below are some of the important features from the FAQ and from what I was told by the CSR:
- Application must be mailed or faxed (FAQ)
- No minimum balance requirements or monthly fees (FAQ)
- Interest is earned daily and credited monthly (FAQ)
- No hard credit inquiry (CSR)
- Beneficiaries are allowed (CSR)
- No check writing and no ATM card (CSR)
- Electronic statements only (CSR)
- ACH Bank-to-Bank Transfer Service Features:
- No limit on the number of withdrawals. CSR said it's treated as a checking account so it doesn't have the savings account regulation D limitations of 6 withdrawals per month
- No limit on the number of linked accounts (FAQ)
- Allows linking to checking or savings accounts (FAQ)
- No size limitations on the ACH transfers (CSR)
- ACH transfers are free (CSR)
- Incoming/outgoing transfers will clear overnight provided you complete our transaction before 1:00pm (FAQ)
Newtown Savings Bank has branches in the Connecticut counties of Fairfield, Litchfield and New Haven.
The bank's ratings for for safety and soundness are fair: 3.5 stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1960 (FDIC Certificate # 18199).
Thanks to the reader who mentioned this account in the Daily Deals & News Post.
For other high-yield savings accounts available nationwide, refer to my weekly rate summary.
03/16/10: 1.40% APY
10/26/09: 1.60% APY
06/16/09: 1.80% APY
06/10/09: Received confirmation that U-Sweep savings account is available nationwide
05/21/09: 2.30% APY