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Last Chance at the 2.25% Savings Account at SFGI Direct?

POSTED ON BY

SFGI Direct
Update 11/13/09: The rate has fallen to 1.85% APY.

SFGI Direct has posted the following on its front page:

On Friday, November 6th SFGI Direct will again remove the "Apply Now" button from our website. As many of you noticed in July we removed the "Apply Now" button for approximately 2 months. It is our philosophy to deliver a competitive product to our clients

SFGI Direct has chosen a strategy to slow account growth by limiting the application process of new clients instead of dramatically cutting rates to loyal customers.

So today may be your last chance for this 2.25% APY savings account. I have to give the bank credit for keeping this very competitive rate since it began last summer. As with any bank, it can only take in so many deposits, and the bank isn't large. As of 6/30/09, the FDIC reported that Summit Community Bank (the bank behind SFGI Direct) had $1.57 billion in assets and $964 million in deposits.

For more details about the savings account and the bank, please refer to my SFGI Direct account review. I also have some additional details in this post.

Summit Community Bank's rating for safety and soundness has gone down over the last quarter at Bankrate.com. It's now 1 star (lowest) based on 6/30/09 data. It had been 2 stars when it was based on 3/31/09 data. It remains 2 stars (problematic) at BauerFinancial. This is also based on 6/30/09 data.

The bank has been a FDIC member since 1995 (FDIC Certificate # 34102).

Thanks to larkin who mentioned this SFGI Direct news in the comments.
  Tags: SFGI Direct, savings account

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Comments
17 comments.
Comment #1 by Anonymous posted on
Anonymous
Hope it holds for a little while. Just applied on Tuesday night and the micro deposits showed up yesterday. Moving money out of Shorebank now.

1
Comment #2 by Anonymous posted on
Anonymous
I opened one last week. But I bet this bank is going under in the next few weeks or month it has a one star rating and I don't think it will survive much longer so make sure to stay under the FDIC insured limits...

1
Comment #3 by Anonymous posted on
Anonymous
This is not a good sign. When a bank start to refuse deposits, it is to late to save the interest rate.
FDIC will make sure they will reduce the rate or else will be put on the list for closing.
I'm not going to chase this rate, because it will not last more than a month.

1
Comment #4 by Anonymous posted on
Anonymous
No POD or trust accounts allowed by this bank.

1
Comment #5 by Anonymous posted on
Anonymous
Maybe I should save the "Apply Now" button, to my hard drive, along with the HTML code, so I can apply any time I want to?

1
Comment #6 by Anonymous posted on
Anonymous
To Anonymous, at 9:47 AM, November 05, 2009, bad idea to bookmark web page for the reason you stated.
If they remove it, your bookmark will be dead link.

1
Comment #7 by Anonymous posted on
Anonymous
Got in after they removed the button last time using the Google cache of the application link.

1
Comment #8 by Anonymous posted on
Anonymous
To Anonymous, at 12:57 PM, November 05, 2009, Google cache is a phantom web site from a Google archive storage server. You are not actually accessing the original bank's web site, what you are looking is a time lapse recreation of a dead site.

1
Comment #9 by Anonymous posted on
Anonymous
To Anonymous, at 12:57 PM, November 05, 2009, do you think that there is no time stamp on your false application after the fact or are you trying to fool yourself with bogus application?

1
Comment #10 by Anonymous posted on
Anonymous
This is the reason why so many other online banks stop accepting new accounts after a flood of deposit money comes in. Many of these banks are no longer in the top tier in terms of interest rates now. Banks are starting to act like mutual funds when too many new accounts are generated.

1
Comment #11 by Anonymous posted on
Anonymous
Sad what people would do for a mere 2.25% rate these days. What has this world becoming of???

1
Comment #12 by Dave (anonymous) posted on
Dave
Regarding the google caching of the "apply now" link.

Yes, last time the bank was not accepting new deposits, I was able (repeat WAS ABLE) to open up an account.

The reason why is the account opening process is done via a 3rd party website.

The Apply now link points to
https://secure.andera.com/index.cfm?fiid=4FD5E1795CAF4F3D956F75F8E9EF13E8

and when I opened that link during the Jul-Oct no-deposit freeze time I did sign up and did create an account and it was valid.

No guarantees they won't fix this hole next time around, but it's worth a shot.

1
Comment #13 by Anonymous posted on
Anonymous
To Dave, are you a hacker or are you trying to do this as a thrill, because you could whined up on FBI most wanted list for forgery.

1
Comment #14 by Anonymous posted on
Anonymous
To anonymous at 8:15,

are you a troll or do you get your thrills being a drama queen? Nobody's going to "whined" up on any FBI lists although I wish they had a list for whining trolls.

1
Comment #15 by Anonymous posted on
Anonymous
The Apply Now button is still there this morning.

1
Comment #16 by Anonymous posted on
Anonymous
The APPLY button is gone as of 6:30p.m. ET.

1
Comment #17 by Anonymous posted on
Anonymous
That's OK about the end of the account. I don't expect them to stay on top for long anyway. The ones on top just a few months ago were knocked of the pedestal now. Anyway, WV is not somewhere where I would expect rates to be in the top for long.

1