Ohio's SaveNOW Bonus Program Provides a Little Help to Savers

The government hasn't made it easy on savers over the last couple of years as interest rates have plummeted, but here's an example of a state government that's trying to help a little. The State of Ohio launched in April a savings program called the SaveNow Bonus. Here's how the Ohio Treasurer described it:

The initiative, an investment of the Ohio Treasury, rewards Ohioans for furthering their financial education by providing them with a 3.25% interest bonus in their savings account. Participants will receive the bonus upon the satisfactory completion of a requisite one-year period of financial instruction.

Unfortunately, the interest bonus is limited to $5,000.

Not all banks in Ohio have signed on. According to the Cincinatti Business Journal, participating banks include PNC/National City, Liberty Savings, Wayne Savings and MainSource Savings.

4% Deal at Liberty Savings Bank

Liberty Savings Bank has a special savings account for this program called the SaveNOW Savings account. The savings account has a base rate of 0.75% APY as of 5/10/09. After one year, you can qualify for an extra bonus rate of 3.25%. Here are some of the important features as listed at the bank's SaveNOW page:

• No minimum balance; only $10 to open
• No monthly service fee
• Maximum balance on which you can earn the interest rate bonus is $5,000
• Deposits can be made to the account any time and should not exceed $500 at a time

Compared to a 2% savings account, you can earn up to $100 more in this account over a year.

Liberty Savings Bank also offers a reward checking account that currently pays 4.01% APY on balances up to $25K (see post). It also offers a companion savings account called reward savings that allows you to earn 2.01% APY on all balances if you meet the reward checking requirements.

Liberty Savings Bank has been FDIC insured since 1984 (FDIC Certificate # 32242).

Thanks to the reader who mentioned this SaveNOW account in the Daily Deals & News Post.

Tags: Liberty Savings Bank, Ohio, savings account