Dedicated to Deposits: Deals, Data, and Discussion

ShoreBank Direct Online Savings Account Rate Increased to 2.15%

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ShoreBank
ShoreBank Direct has just done something that has been rare this year for banks. It increased the rate of its online savings account. The rate increased from 2.05% to 2.15% APY. There have been a few other rate increases this year at other banks, but in many cases the rates had been uncompetitive before the rate increase.

Refer to my account review for details of this savings account. I also have a rate history at the bottom of that post. Since 2007, they've maintained very competitive rates.

Unfortunately, the rate increase may be due to its financial condition rather than a change in the interest rate environment. It was reported in this Chicago Tribune article that state and US banking regulators have told ShoreBank to "boost its capital levels, improve its asset quality and earnings, and develop a liquidity plan." The bank has "said it was well-capitalized by regulatory standards as of June 30, but is trying to raise an additional $10 million to $30 million in capital."

ShoreBank's ratings for safety and soundness are consistent with the news. BauerFinancial gives the bank one star (troubled) and Bankrate.com also gives the bank one star (lowest). Both ratings are based on 3/31/09 financial data. The deposits in the savings account are insured by the FDIC (FDIC Certificate # 15640).

Thanks to the reader who mentioned this rate change in the Daily News & Deals Post.

For other high-yield savings accounts available nationwide, refer to my weekly rate summary.

  Tags: ShoreBank, savings account

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