Update 8/27/10: The rate for balances over $1K has fallen to 1.15% APY.
OMNIBANK, N.A. has a savings account called the Family Savings with some competitive rates. I saw it advertised yesterday with a 5% APY which made me suspicious. As I expected the 5% APY is only for balances up to $1,000. However, I was pleasantly surprised to see a very competitive rate of 1.90% APY for balances over $1,000. These rates are listed at the bank's rate sheet as of 11/27/09. Note, there are different rate sheets for different cities, but the Family Savings rates are currently the same for all of them. The same rates are also available in a Health Savings Account (HSA).
I called the bank this morning, and according to the CSR, the Family Savings account has been available for the last 18 months. The rate for balances over $1,000 had been 2.50% APY but this was lowered to 1.90% about 5 months ago. So it's not a promo rate.
The bank's website doesn't have many details about this Family Savings Account. Here is what I learned today from the CSR:
- Requires that you also have a checking account with them (any checking). All their checking accounts have monthly fees. One requires a $750 minimum balance to avoid fees.
- Family Savings account has no monthly fees
- Minimum balance is $25
- No deposit limitations
- Limit of 6 withdrawals per quarter
The checking account requirement does hurt this deal a little, but on the plus side, the checking account does make it easier to withdraw money from the account.
A branch visit is required to open an account. Branches are located in the Texas cities of Austin, Houston, Lockhart, San Antonio and Cedar Park.
One issue I have with the bank is that their website's front page locks up my FireFox browser. I was able to view it with IE without any problems.
OMNIBANK's ratings for safety and soundness are a little mixed: 3½ stars (good) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 1954 (FDIC Certificate # 17325).
Other Competitive Savings Accounts
- 08/26/10: 1.15% APY over $1K
- ??/??/10: 1.35% APY over $1K
- 04/27/10: 1.49% APY over $1K
- 11/27/09: 1.90% APY over $1K