Bank of American Fork has started an online savings account called SaveSmart Direct. The rates are fairly competitive. As of 5/11/09, it has the following tiered interest rates:
- 0.50% APY for $10 to under $1,000
- 2.20% APY for $1,000 to under $250,000
- 2.30% APY for $250,000+
The FAQ and disclosure have some of the account details, but as usual, there are few details describing the ACH bank-to-bank transfer system. I received some of these details from a bank representative today. One issue with their ACH system is that withdrawals are limited to $10,000 per day. However, this limit can be temporarily increased if you call.
Below are some of the important features of the account as describe in the bank's FAQ, in the bank's disclosures and from info I received from the bank's rep:
- Account Opening:
- Consumer accounts available nationwide. Business accounts only available to applicants with Utah business license (Rep)
- $10 minimum opening deposit (Disc)
- Can be opened online and funded with ACH transfer from an existing account (FAQ)
- Application allows for up to 6 beneficiaries (FAQ)
- No hard credit inquiry, just a soft pull via Equifax for ID verification purposes (Rep)
- ChexSystem is used. Past ChexSystem inquiries should not cause application from being rejected (Rep)
- Account Fees/Limitations:
- $1.50 monthly fee if balance is under $10 on the last day of the statement cycle (Disc)
- $1 fee for each outbound transfer that exceeds 3 per month (Disc)
- Maximum number of outbound transfers is 6 per month (Disc)
- No limit on number of deposits (Rep)
- Account Features:
- Interest compounded and credited monthly (Disc)
- If you close your account before interest is credited, you will receive the accrued interest (Disc)
- Interest rates may change weekly (Disc)
- Paper statements are mailed by default, but eStatements can be selected when you're logged into online banking (FAQ)
- ACH Bank-to-Bank Transfer Service:
- ACH transfer for initial funding done without trial-deposit verification (Rep)
- Once account is opened, the funding account is not automatically linked for future transfers (Rep)
- Up to 3 linked accounts are allowed (Rep)
- Links can be added through an online-only process that involves the typical trial-deposit method (Rep)
- By default, inbound transfers are limited to $100,000 per day. Outbound transfers are limited to $10,000 per day. Customer service can temporarily increase limits on request. (Rep)
- Transfers can take 2 to 4 business days depending on the time of day the transfer is initiated (FAQ)
The bank is based in Utah with 12 offices. It's a small bank with less than a billion in assets. As of 12/31/08, it has $877.8 million in assets and $785.5 million in deposits. The bank has been FDIC insured since 1934 (FDIC Certificate # 12773).
For other high-yield savings accounts, refer to my weekly rate summary.
Edit 5/12/09: Corrections made to the ACH in/out limits.
Account History:
Update 9/05/09: Rate for balances of $1K to $250K has fallen from 1.75% to 1.60% APY. Over $250K, the rate has fallen from 1.80% to 1.70% APY.
Update 7/11/09: Rate for balances of $1K to $250K has fallen from 1.95% to 1.75% APY. Over $250K, the rate has fallen from 2.00% to 1.80% APY.
Update 6/04/09: Rate for balances of $1K to $250K has fallen from 2.20% to 1.95% APY. Over $250K, the rate has fallen from 2.30% to 2.00% APY.
