EBSB Direct is a new online division of East Boston Savings Bank, and they're offering a good deal on their online savings account. As of 5/14/09, they're guaranteeing a 2.81% APY on balances over $50,000 through 9/30/2009. The rate is 2.00% APY for balances from $5,000 to $50,000. Minimum balance to open is $5,000. Maximum balance is $1 million.
The high rate along with the rate guarantee makes this a good deal for those with a large enough balance. Besides the rate, another nice feature appears to be a solid ACH bank-to-bank transfer service. According to the bank's FAQ, they allow unlimited number of links to external accounts, and the links are set up online via trial deposits. One feature that's not mentioned in the FAQ is the limit on the size of the transfers. Banks often have small limits that make it difficult to transfer money. I called this morning, and according to the CSR, the limit is a respectable $150,000 per transfer (in or out). One negative is a $5,000 minimum balance requirement to earn interest and to avoid a monthly fee.
Below are some of the important features of the account as described at the website documentation, at the bank's FAQ and from info I received from the bank's CSR:
- Account Opening:
- Available nationwide (CSR)
- $5,000 minimum opening deposit (Doc)
- Can be opened online and funded with ACH transfer from an existing account (Doc)
- Credit report will not be accessed (FAQ)
- Do not allow beneficiaries or living trusts (CSR)
- Account Fees/Features:
- $5,000 minimum to earn interest (Doc)
- $15 monthly fee if balance falls below $5,000 (CSR)
- Visa Debit card is available (Doc)
- No check writing (CSR)
- Limit of 6 withdrawals per month as typical from a savings account (FAQ)
- No limits on the number of deposits (FAQ)
- Interest is compounded and credited monthly (CSR)
- Only paper statements are mailed once a month or once a quarter if no activity (FAQ)
- ACH Bank-to-Bank Transfer Service:
- Initial funding source info is kept so you can initiate future transfers without having to relink account (FAQ)
- Trial deposits are used to verify linked accounts (FAQ)
- Allows unlimited number of links to your accounts at other financial instutitions (FAQ)
- Transfers are limited to $150,000 per transfer for both inbound and outbound (CSR)
With any new online bank, I always try to be extra careful to make sure it's legitimate. I was a little concerned since there's no clear connection between EBSBdirect.com and the bank's main website, EBSB.com that's listed at the FDIC. However, both EBSBdirect.com and EBSB.com link to the same service, ibanking-services.com, for the online application. So EBSBdirect.com appears legit.
Credit for this find goes to BestCashCow.
For other high-yield savings accounts, refer to my weekly rate summary
Edit: Added info on beneficiaries/living trusts
Account History:
12/08/09: 1.67% APY $50K+ (can't find rates for other tiers)
10/03/09: 1.77% APY $50K+, 1.25% APY $5K-$50K
07/21/09: 1.55% APY $50K+, 1.25% APY $5K-$50K
07/01/09: 1.75% APY $50K+, 1.25% APY $5K-$50K
06/19/09: 2.02% APY $50K+, 1.50% APY $5K-$50K
06/02/09: 2.22% APY $50K+ no more guarantee period
05/26/09: 2.62% APY $50K+ guaranteed to 9/30/09
05/14/09: 2.81% APY $50K+ guaranteed to 9/30/09, 2.00% APY $5K to $50K
