WTDirect's Online Savings Account Promotion - Nationally Available
Update 3/10/2010: The promotion has ended. The new standard savings account rate has fallen from 1.26% to 1.16% APY. Refer below for the account overview and the rate history.
WTDirect has started another new-account bonus similar to the promotions it ran last December and last August. As you might expect in this low-interest rate environment, the bonuses are quite a bit lower than what they offered before, but when you combine this new bonus with WTDirect's competitive rates and their online banking features, it's a decent deal in today's environment.
The promotion details are below:
- Apply online for WTDirect account
- Make an initial deposit of $10,000 or more by August 15, 2009
- Keep your funds on deposit with WTDirect through 10/31/09
- Earn a cash bonus up to $150 based on the schedule below
- $150 bonus for $50,000 balance
- $100 bonus for $40,000 balance
- $75 bonus for $30,000 balance
- $50 bonus for $20,000 balance
- $25 bonus for $10,000 balance
Some important small print:
- Offer is available to new WTDirect clients only. Primary account holder must not have held a WTDirect account in the past 12 months.
- To receive the bonus, a valid promotion code starting with the letters "WFIT" must be present on the application at the time of account opening
- WTDirect account must be funded via electronic (ACH) transfer received by 7/31/09
- Account must remain open and in good standing through 10/31/09, the end of the promotion period
- Bonus is determined by the account balance at the time of initial funding, which must be a minimum of $10,000 and must remain on deposit through the end of the promotional period.
- Bonus will be credited to client's WTDirect account on or about 11/20/09
- WTDirect reserves the right to cancel or modify this promotion at any time without notice.
In a nutshell, the bonus can allow you to earn up to an extra 1.2% for 3 months on top of their standard rate (currently 1.76% APY as of 7/08/09). Here's how I came up with an extra 1.20%:
- 3 month return: $150 / $50,000 = 0.003 = 0.30%
- Annualized: 0.30% x 4 = 1.20%
Note, the bonuses for deposits under $50,000 only come out to 1.00%. This also assumes you maintain the balance right at the tiers.
As I mentioned, the bonuses are quite a bit less than their December 2008 promo when the bonus could add up to an extra 3% for 2 months and less than their August 2008 promo when the bonus could add up to an extra 6% for 2 months. Nevertheless, this current WTDirect bonus is comparable to other deals such as EverBank's guarantee of 3.01% for 3 months for up to $50K (see review).
WTDirect Account Details:
WTDirect's standard rate of 1.76% APY (as of 7/08/09) is competitive. The only downside is that it only applies to balances of $10K and above. Under $10K, the rate is only 0.15% (except for the first 60 days). If you do plan to keep at least $10K in this account, it may be an account you'll want to keep for the long term. They've kept their rates competitive since my first WTDirect post in November 2006.
In my opinion, WTDirect has better online documentation than many other internet banks. The provide many details on their ACH bank-to-bank transfer service. Here are the links to this documentation along with some relevant details:
- Account Details - No monthly fees regardless of balance
- FAQs - ACH transfer features: allows unlimited linked accounts, high limits on transfers
- Moving Money Documentation - Details on their ACH and wire transfers
- Account funding FAQs - Fund by ACH transfer with trial deposit verification or by mailing in a check
Readers have reported that WTDirect does not do a hard credit inquiry in the application. It has also been reported that the trial deposits are debited from your funding account. A reader who has an account at WTDirect mentioned that the ACH transfers take 3-4 days. One example he gave was a transfer that was set to start on 5/26. Funds were deducted on 5/26 and were credited to the destination account on 5/28.
This online savings account is FDIC insured. WTDirect is a division of Wilmington Trust which has been a FDIC member since 1994 (FDIC Certificate # 33911). The bank's ratings for safety and soundness are fair: 3 stars (performing) at Bankrate.com and 3½ stars (good) at BauerFinancial. Both ratings are based on 3/31/09 financial data.
Refer to my WTDirect page for my previous reviews and to read comments from those who have opened this account during previous promotions. For other high yield savings accounts, please refer to my weekly rate summary.
03/10/10: 1.16% APY
02/17/10: 1.26% APY
12/19/09: 1.41% APY
10/15/09: 1.51% APY
08/19/09: 1.66% APY
07/08/09: 1.76% APY
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