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2.60% Reward Checking Account with $100K Balance Cap at Savoy Bank in NYC - Local Only

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Savoy Bank is offering a reward checking account called Super NOW. It has the following rates and features if certain monthly requirements are met:
  • 2.60% APY on balances up to $100,000 guaranteed to 4/15/2010
  • 1.30% APY on portion of balance above $100,000 (tiered money market rates)
  • If requirements are not met, it reverts to tiered money market rates
  • Refunds ATM fees worldwide
The monthly requirements include:
  • At least one debit card purchase
  • One Direct Deposit or other ACH deposit
  • Receive electronic statements
Additional features regardless of the monthly requirements include:
  • $1 minimum to open
  • No monthly service fees
  • Free bank style checks
  • Free bill pay services
Note, I had to call the bank for some of the above details. A branch visit is required to open the account for first time customers.

It's a small bank with one office located in New York City.

The bank was established in January 2008 so it's labeled as a start-up at BauerFinancial. It has a 3-star rating for safety and soundness (performing) at Bankrate.com based on 6/30/09 financial data. The bank is a FDIC member (FDIC Certificate # 58641).

Update 12/12/09: Savoy Bank received a NY State Cease-and-Desist Order (pdf) and a FDIC Cease-and-Desist Order (pdf) on 6/08/2009.

Other Reward Checking Accounts

Reward checking has been rare in New York so I'm happy to find a new one. A rate under 3% is low for reward checking, but the $100K cap is much better than the typical $25K cap.

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
  Tags: New York, Savoy Bank, checking account, reward checking account

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Comments
10 comments.
Comment #1 by Anonymous posted on
Anonymous
4 month teaser rate, not a real APY since its just 4 months from today.

After that they will lower the rate to below competitive rates.

Reminds me of when Igobanking also did a interest checking account but without a guarantee and no debit card requirements and less perks.

I haven't yet found a one size fits all bank to use since I keep swapping banks, and for 4 months, Savoy isn't worth it.

Would rather HSBC than Savoy because of its wider scale and reach even with its lower interest rates for its online accounts.

Paper checks are meaningless. I get them from GE Interest Plus with a $250.00 min requirement just in case which has a higher yield which will be there for the long haul over Savoy's 4 month yield.

Don't find anything of interest here. Its a one branch bank with nothing to offer and a 4 month teaser.

All the perks and the rate look nice but after 4 months, the offering will be even worse.

1
Comment #2 by Anonymous posted on
Anonymous
Just like AmtrustDirect which was a shark bank, so is Savoy Bank.

They had a Cease and Decist Order last year as per:

http://www.banking.state.ny.us/ea090608.pdf

Do not do banking with these guys. Bank will be bankrupt just like AmTrustDirect. Deposits will be FDIC insured, however with a bank the goal is to make money, not give it away.

A 4 month teaser will not hold, plus it is doubtful the bank will even last this long. The 3 stars is incorrect on this institution.

Giving money to an unresearched bank is akin to giving your money to Bernie Madoff and company.

And safe and secure banks, give the least rates, while the unsafe risky banks make promises they can not keep.

Rate swapping gets you nowhere and putting money in the unregulated marketplace can be even worse and deadly.

Do yourself a favor and don't bank with Savoy. The cease and decist order I posted is all you need to know.

How many people will bank with Savoy based on a rate without even giving a first glance at the fundamentals of the institution they are dealing with.

Just don't do it.

1
Comment #3 by Anonymous posted on
Anonymous
http://www.fdic.gov/bank/individual/enforcement/2009-06-17.pdf

Most recent cease and decist order to Savoy Bank.

1
Comment #4 by Anonymous posted on
Anonymous
There is no such thing as a free lunch in the market.

1
Comment #5 by Anonymous posted on
Anonymous
If Bankrate has a 3 star bank which has a cease and desist order then it just shows you how ****ed up Bankrate.com rankings are or they are intentionally designed to deceive just like we had with the ranking agencies in the global financial crisis, and I can't tell nor do I care.

1
Comment #6 by Anonymous posted on
Anonymous
This forum really provides nothing of use anymore unless you find a credible bank having a promotion on a CD or something that you need at a point in time.

But posting this without the notice of cease and decist order and saying it has a 3 star ranking from Bankrate.com, makes you think otherwise.

1
Comment #7 by Anonymous posted on
Anonymous
Bankdeals guy should mention the cease-and-desist letter that the bank received in June 2009 from NY Banking. But, risky, even if bank closes, as long as you're within FDIC limits and the $100k max for this RCA, then your money is still safe. Plus, like AmTrust Bank or all the other failed banks, there will most likely be another bank to take over. But, the interest rate will most likely drop? For a very minimum amount of requirements for a reward checking account, with the nice benefits, makes this appealing. Does anyone know if I live in NH or PA, and I visit my friend in NYC, can I open an account at this bank? Or, is it only for NY-state Residents?

1
Comment #8 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info on the C&D orders. I've updated the post with the links to both the state and FDIC orders.

When I talked with a bank rep yesterday, I did not ask if they accept out-of-state customers. Banks' policies on this often changes with different reps reporting different info. So it's best to confirm with a branch manager before planning a long trip.

1
Comment #9 by Anonymous posted on
Anonymous
As long as you are informed then all is well.

When a bank has a cease and decist order, it makes you wonder why it was there to begin with. One needs to understand how banks work, and how safe the funds are once they decide to do business with the bank.

But it does boggle the mind why it was given a 3 star rating by Bankrate. I am not saying nor was trying to insinuate any wrongdoing.

The blog is realtime and as such information has to be taken with a grain of salt.

Personally I would never do banking with a bank for a 4 month teaser rate which has one branch who also has a cease and desist order in play. This is a recipe for disaster for the consumer.

If the bank has a cease and decist order, it shouldn't be offering high rates either because it means the bank has to stabalize the assets. Customer is FDIC insured, but FDIC insurance takes time and a willing suitor has to be found.

Even on 100,000, 2.6% for 4 months is minimal, its not even worth the time even if you want to and understand the necessary risks since if you have that kind of cash you can be getting into much better investments to begin with.

And at lower dollar amounts, the amounts gained are peanuts.

1
Comment #10 by Anonymous posted on
Anonymous
Earn high interest with all the benefits of a checking account and no term restrictions. A great alternative to CD’s! If you use Direct Deposit, ATM/Debit Cards and Electronic Statements you already qualify. No fee ATM’s worldwide, No fee Internet Banking, Bill Pay and many other benefits.

and

Next Day Availability on your deposited funds.

Look I am not going to deny the terms and conditions of the bank but if you live in NH are the perks so big in your favor you need to travel to NYC for banking?

With AmtrustDirect, I had issues which also had a cease and decist order before being taken over by New York Community Bank.

Savoy has excellent perks but the rate has a seperate small fine print, so while the account is good till the date, one never knows if they will change it.

1